How Much Does Online Advertising Cost?

Similar to traditional marketing, online marketing offers various platforms to connect with potential customers. According to our research, the average cost of online advertising typically ranges between $3 to $10 per thousand impressions, and $1 to $3 per click.

We've analyzed industry averages for major online advertising platforms and broken them down by Cost Per Thousand Impressions (CPM) and Cost Per Click (CPC):

Online Advertising Costs in 2024

The industry you operate in greatly influences online advertising costs, with some sectors being more competitive than others. The typical cost per click for most industries ranges from $2 to $4, but in highly competitive fields like legal services, insurance, and loans, costs can soar to $50 per click.

Google Advertising Costs

Google Search Advertising Costs
Formerly known as AdWords, the average cost per click for Google Search Ads is $2.32. Costs can vary significantly based on the specific keywords targeted, as ads appear to prospects at the precise moment they’re searching for the products or services your business offers. With a CPM of $38.40, your ad can reach 1,000 viewable impressions, and you can expect to convert a portion of those impressions into website visitors and leads.

Google Display Advertising Costs
Google’s Display Network is a cost-effective platform when evaluated through a CPM lens, with display campaigns averaging between $0.50 and $4 CPM, typically landing around $3.12. With broader awareness goals and less targeting, CPM can be significantly reduced. The average CPC for display network campaigns stands at $0.58.

YouTube Advertising Costs
YouTube Ads operate on a Cost Per View (CPV) model, making direct comparisons with CPM difficult. With an average CPV of $0.10, you could spend about $100 for 1,000 voluntary ad views. The CPM for the first five seconds of an ad is approximately $9.50, depending on the ad's effectiveness. On average, YouTube ads cost around $3.21 per click.

Social Media Advertising Costs

Facebook Advertising Costs
Facebook offers flexible budget options, allowing for both daily and lifetime budgets, with a minimum spend of $1.00. Advertising on Facebook's platform enables you to target users on Facebook, Instagram, Messenger, and the Facebook Audience Network. On average, Facebook ads cost $1.35 per click and $8.60 per thousand impressions, depending on the breadth of your target audience.

Instagram Advertising Costs
Managed through Facebook’s ad platform, Instagram ads offer a powerful way to reach your audience, with an average CPC of $3.96 and an average CPM of $8.96. While Facebook excels in driving traffic and clicks, Instagram shines in generating impressions and broad reach.

Twitter Advertising Costs
The cost of Twitter ads varies based on the type of campaign. Promoted Tweets can range from $0.50 per engagement, while Promoted Trends can cost up to $200,000 per day for guaranteed placement in the Trends section, providing immense exposure. More affordable options include Promoted Accounts, which cost between $2.50 and $4.50 per new follower.

LinkedIn Advertising Costs
LinkedIn is a premium platform for professional reach, with both CPC and CPM options available. The average CPC is $5.26, with costs varying based on targeting criteria and competition. LinkedIn ads also have an average CPM of $7.85, making it a more expensive option compared to other social networks but highly effective for professional audiences.

Offline/Traditional Advertising Costs in 2024

Offline advertising costs vary widely depending on the medium and location. Generally, costs range from $22 and up per 1,000 impressions. Here are some industry averages for offline and outdoor advertising: