Advertising Costs

It is hard to imagine how your business can succeed without an effective advertising campaign. While you can benefit from word-of-mouth, you do not want to wait too long for the results to appear, looking at how your competitors increase their profit rapidly.

Therefore, it is essential to use modern and trusted tools when it comes to dragging your customer attention and increasing conversion rate. Also, it is important to estimate ads costs to plan your budget. In this article, we will provide you with info on advertising costs for such popular platforms as Google Ads, Facebook Ads, and Instagram.

Advertising with Google

An advertising platform developed by Google is known as Google Ads. It is one of the most popular options used by business owners for promotional purposes. The developer gives you a wide range of options regarding how you wish to pay for your advertising campaign.

There are two major networks you can choose from, including the following:

  • Search-related (GSN);
  • Display-promoting (GDN).

The core difference between them is how your ad is displayed to users. In the first case, they will see your ad only after typing keywords that you have previously specified when creating your ad. The keywords match type and other factors are also taken into account. If users’ search inquiries qualify, then they will see your ad at the top of the search results.

When it comes to the display version, users will see it regardless of the keywords they use in their search. Usually, it will be a banner ad shown to users. Such ads are displayed on websites that may be visited by people falling into the category of potential customers.

Both methods have cons and pros that should be considered when choosing the network.

There are several types of advertising costs:

  • Cost-Per-Click (CPC). These ads costs cover the situations when someone clicks on your ad. This option is good for businesses aiming at boosting website traffic;
  • Cost-Per-Mille (CPM) or Cost-per-Thousand. In this case, you will pay for 1,000 impressions, which means that your ad will be displayed 1,000 times. This option is suitable for campaigns aiming at increasing brand awareness;
  • Cost-Per-Lead (CPL). In this case, you will not pay for a click on your ad but for a further action a user does to be considered a qualified lead. It can be subscription, trying a free trial version, opting for a reward program, etc.;
  • Cost-Per-Acquisition (CPA). This option allows you to pay only in case a user buys your products. So, if you want to boost sales, it will be the right option for you.

Average Ads Costs for GSN

Pay-Per-Click (PPC) ads are charged on a CPC basis. The rate is calculated on an auction. During this process, it is determined which ads will be displayed when a user conducts a certain keyword search. There are two basic factors to decide on:

  • Ads order;
  • The CPC rate.

There is a bidding system that allows placing a bid on PPC. Another important matter is the Quality Score, a metric showing how good your ad is. It can be anything from 1 to 10. The greater the Quality Score is, the higher your ad ranks, and so the lower CPC turns out to be.

CPC also depends on other factors, such as location, industry, etc. Basically, it is also about the level of competition, and the higher it is, the greater your CPC will be.

The average CPC is $1.00-$2.00, and small businesses that use the Google advertising platform spend $9,000-$10,000 on a monthly basis. However, this does not mean that you will pay this much or more. Your advertising costs can be decreased by a range of methods such as improving your ad quality.

Average Ads Costs for GDN

Ads on this network usually have a lower click-through rate (CTR), which is the ratio of users who click on a link to the total number of users who view your ad. However, there is a range of opportunities you can benefit from to boost your business success.

The average CPC for an ad in this network is $0.58. The rate also depends on different factors, such as the industry. Usually, high CPCs are typical for employment services and the real-estate industry.

Advertising with Facebook

It is possible to simply post your content on Facebook to sell products or services, but it may take you a long time to build a relationship with your customers. However, you can also take advantage of its advanced advertising platform. It is known for offering affordable and effective methods for businesses aiming at achieving their goals, such as reaching potential customers, increasing traffic, improving conversion rates, and more.

Depending on your marketing goal, you can choose a relevant ad type. This advertising platform allows using effective targeting options to reach an audience based on various factors, such as age, preferences, behavior, etc.

Pricing Structure

While the pricing model designed by Facebook is similar to that offered by Google, it provides better opportunities for customers to plan their budget. Thus, you can set daily or weekly limits on how much you are willing to spend on your advertising campaign. When you run out of money, your ads are paused. Also, you can set maximum bids for your ad campaigns. Moreover, it is possible to set bids to control your expenses resulted from users taking certain actions, for instance, signing up, downloading an app, and so on.

All in all, Facebook allows keeping your expenses under your full control. At the same time, the pricing conditions may seem to be a bit tricky for beginners compared with the transparent ad platform designed by Google. Therefore, many businesses seek help from Facebook reps to get started. All you need is to contact their ads manager and tell what you need. He or she will calculate the advertising costs of each of your campaigns.

Average Ads Costs

On average, Facebook charges $1.72 per click, while CPM will cost you about $7.19. The final price depends on a variety of factors, such as industry, location, and others. Owners of small businesses plan to spend $0.50-$1.00 per click, but the price offered for you particularly will depend on your campaign specifics.

The rates charged by Facebook are surely competitive compared with those offered by many other advertising platforms. Even the most expensive industries pay relatively low average advertising costs.

A few examples of CPCs by industry are provided below:

  • Finance and insurance — $3.77;
  • Customer services — $3.08;
  • Home improvement — $2.93.

Moreover, the advertising platform designed by Facebook is an effective way to achieve your business goals. Thanks to the advanced targeted options, you can enjoy the best value for money. All in all, even if your budget is limited, you will be able to find options and take advantage of this ad platform.

Advertising with Instagram

Since 2012, Instagram has been owned by Facebook, which made this acquisition in order to hold the top position in the social media world. It also allowed expanding the advertising platform and boosting revenue from ads posted on Instagram.

The Instagram ad platform is an ideal option for brands to reach and attract their audiences through high-quality and engaging images and video ad content.

Similarly to the Facebook advertising platform, Instagram allows choosing from a range of formats depending on your campaign goals.

One of the best things about this ad platform is that it is less annoying for users. Ads are displayed in the users’ feed, creating a smooth ad experience. In simple words, ads look like organic content with nice visuals, leaving a good impression, which makes this advertising platform favorable for promoting your business.

Pricing Model

The Instagram ads platform is part of Facebook’s services, which means that they both have very similar pricing conditions. This is surely rather convenient for those who plan to use both platforms for their ad campaigns.

Basically, to get a handle on each of them, it is enough to understand how one of them works. Also, it is possible to manage both platforms from the same dashboard.

There is the same auction system as for Facebook ads. It is possible to determine your daily budget limits or expenses for the entire campaign. In order to be able to post your ad, you will bid on it. In simple words, it means the maximum amount of money you are willing to spend on your ad. CPC is determined depending on who wins.

The winner is the one whose ad provides the most value for users. He or she will be charged the minimum CPC.

Generally, CPC depends on the following factors:

  • The size of your bid;
  • The likelihood of the desired action;
  • The quality of an ad.
  • It is recommended to get a full understanding of the Facebook ad platform so that you could find it very easy to work with Instagram.

Average Ads Costs

Just a little time ago, the average advertising costs charged by the Instagram advertising platform were lower than those charged by Facebook. Moreover, they used to be nearly 50% of Facebook ads costs. Today, the advertising costs charged by both platforms are similar.

The average CPM that you will pay for using Instagram is about $10 now, which is very close to the price offered by Facebook. The price has changed due to the increase in popularity.

At the same time, the price remains reasonable, and if you use effective targeting options and other opportunities provided by the platform, you will be able to achieve the desired goal without draining your budget. Also, you should remember that user engagement on Instagram is quite high. This means that it allows not only capturing the attention of the target audience but getting them to do the needed actions.

A greater number of Instagram users interact with brands’ content than any other social media networks, so if the success of your campaign depends on this factor, then you should use the Instagram ad platform without any doubts.

Remember that it is very easy to control your expenses when using Instagram as well as manage your campaign since you can get help from the same Facebook Ads Manager.

Also, you can experiment with different strategies and see which one ensures the best return on investment. Those can be various targeting and retargeting techniques, so remember to keep your finger on the pulse to know the latest trends and helpful tips and tricks to boost your ad campaign success.

How to Decrease Ads Costs?

There are various tips you can find on how to decrease your advertising costs. The general ones are as follows:

Regular Analysis

Indicate dates in your calendar to conduct a regular analysis of the effectiveness of your campaign. It is important to know what works well and what does not provide the desired results. There is no need to pay for ads that do not allow you to achieve your goal.

It is important to understand what is wrong and implement relevant changes. You should remember that user preferences change on a regular basis, and you want to follow the latest trends to gain interest from your audience.

Know Your Target Audience

It is crucial to have a clear idea of who your target audience is. When creating your ad campaign, you want to make sure that it is engaging for your users, and that is why you need to know their preferences, needs, budgets, and other specifics.

Monitor Helpful Tips

It would be just great if you can come up with amazing unique ideas on how to boost brand awareness or increase your revenue, but while you are thinking, you can go through helpful recommendations found on the Internet. You can find pretty interesting options and tricks to use in your ad campaign.

Improve the Quality of Your Ads

Each of your ads should be of high quality. This will allow dragging the attention of your target audience or even more people. When preparing an image or video content, make sure to use good equipment. When creating texts, you can ask for additional help from editors, so that the content can be engaging, mistake-free, and consistent.

Experiment with Different Strategies

You never know which strategy is going to work best. Therefore, you can experiment with different strategies. While it may cost you more money, you will be able to save greater amounts eventually by choosing the most effective techniques and getting rid of the useless ones.

Keep It Slowly

Do not try to advertise everywhere at once for a start. It is recommended to gain enough knowledge of a certain ad platform before you begin using another one. This is how you will be able to control your campaign easier. Over some time, you will be able to use different options to manage ads, monitor results, and implement changes.

Use Help from Professionals

While the ad platforms give you plenty of helpful info and provide assistance, such as through the Google Ads Channel, there are still lots of questions that you will have to answer yourselves, and the success of your campaign and return on investment depend on that. Therefore, if you find something challenging or you are unsure about what to do, you can opt for help from professionals. Following the latest market trends in the advertising industry and knowing how each of the platforms works, the specialists will be able to provide you with quick and effective solutions.

Make a Good Landing Page

Making people visit your landing page is half of the success as you want them to do a particular action. Therefore, you should make sure that your landing page is well-optimized, relevant to your ads, includes enough info, and matches other requirements for the best experience of your visitors.

Boost Organic Traffic

It is also possible to use various social networks to keep your ad campaign virtually free. Well, you will need to invest lots of your time and effort though. By setting a social media account, posting engaging content, interacting with your potential customers, you will be able to achieve your goals. This option is good for every business type and size but makes a perfect solution for those with a very limited budget. Also, you can work on both paid and organic traffic at the same time, which ensures better results at lower expenses.

Why Choose Us?

If you are planning on advertising your product or services online, you can come to our office for a personal conversation, or you can use a range of contact methods to reach us wherever you are.

We have specialists with deep knowledge of text and banner ads, various advertising platforms, differences in pricing plans, and, of course, various marketing and advertising strategies, techniques, and tricks that you can take advantage of to achieve your goals.

We will help you pick the best tool in terms of value for money. Not only can we help you increase return on investment when it comes to paid traffic but also optimize your website to boost organic one.

Our company works on various projects regardless of their size. Whether you own a small business or a large corporation, we will be able to help you with your project to gain the desired results.

So, if you are looking for professional help to make the most from your advertising campaign on any of the ad platforms, you can count on our help. Just contact us so that we could find out what you need and you could get a better idea of what we are capable of.


We hope that you have found the info about the average advertising costs provided in this article useful. At the same time, you should understand that the price you will have to pay depends on a large variety of factors. It is great that Facebook allows you to keep your expenses under control so that you would not spend more than expected, but you also want to ensure a high return on investment.

It is crucial to conduct careful research on both desktop and mobile target audiences for you to design an effective ad campaign. Choose the platform and pricing plans depending on your ad goals, budgets, and other specifics, and contact us if you need some help.

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