Average Cost To Advertise On Social Media – Growing your business with online advertising has never been easier. However, there is a lot of information to sort through and for those new to online advertising it can be a little daunting to say the least.
Each online advertising platform has its strengths and weaknesses, and there are dozens of ad formats, campaign types, and performance metrics that advertisers must consider. However, behind all this there is always one burning question:
Average Cost To Advertise On Social Media
Today we’re going to take a detailed look at ad spending on three of the biggest online advertising platforms – Google AdWords, Facebook Ads and Instagram.
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We examine the relative costs of advertising on Google, Facebook, and Instagram, and the strengths and weaknesses of each online advertising platform. Finally, we’ll explore how each platform measures performance, and there’ll be plenty of real-world data and research.
The granddaddy of online advertising, Google Ads is not just the world’s largest online advertising platform, but an integral part of the Internet.
You’ve probably heard the joke that Google is the advertising business that owns the search engine, but that’s not far from the truth. Google derives the lion’s share of its billions of dollars in annual revenue from online advertising, which allows the company to stay on the cutting edge of search technology.
Before we answer that question, we need to clarify which part of Google’s vast empire we’re talking about – the search network or the display network.
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The Google Search Network is where pay-per-click (PPC) ads appear above and below organic search results for a user’s search query. Because Google shows ads online that are most relevant to a search query, companies using Google Ads can drive more qualified traffic to their website and landing pages. Instead of showing your ad to a large audience that may or may not be interested in your products (as you would when you buy billboard space), you can target your ad to people who are specifically looking for the products or services you offer.
The place where display ads appear is the Google Display Network. A media network consists mostly of index networks. Although advertisers can include multimedia content in many display ad formats (such as animation and video), most media ads are banners.
As the name suggests, PPC advertising is priced on a cost-per-click (CPC) basis, meaning the advertiser is charged a small amount each time someone clicks on the ad.
Your cost per click is calculated each time your ad appears according to a process called ad bidding. Ad auctions are Google’s way of deciding which ads to show when someone searches for a keyword, in which order to rank the ads, and how much each advertiser will pay for each click.
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Your ad position and cost per click are determined in part by the competitive landscape and in part by your own maximum bid (the maximum amount you’re willing to pay for each click) and quality score (a 1 to 10 measure of how good your ad is). A higher Quality Score will increase your ad’s ranking while lowering your cost per click.
There are many factors that affect your cost per click and the cost of other Google ads. For example, CPC can vary from one geographic location to another (even for related keywords and search terms) and from one industry to another.
CPCs for financial keywords, for example, are often higher than for other verticals (more on that soon).
Display ads on the Google Display Network (and other networks in general) have a lower click-through rate (CTR) than PPC ads. In fact, according to Solve Media, you’re 475 times more likely to survive a plane crash than clicking on a banner ad — a truly sobering statistic.
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However, when combined with smart targeting options like remarketing and lifetime event targeting, your online ad CTR can increase significantly. As with search ads, display ads increase your ROI if you can achieve high click-through rates.
Now that we’ve broken down the key differences between these two ad types and their typical pricing models, let’s dive into all that juicy data.
Online advertising costs vary greatly not only by platform but also by advertiser’s industry. With that in mind, let’s take a look at the average cost of Google Ads ads across 20 industries:
The average cost per click on Google ads across all industries is $2.32 on the Search Network and $0.58 on the Google Display Network.
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As you can see, some of the most expensive keywords in the Google Search Network have an average CPC of $5.88 in the legal industry. This is not surprising given how expensive legal services can be and high-profile lawsuits often command large sums of money. In other common industries, the average cost per click ranges from 19 cents to $3-$4 per click. As a rule, the more expensive the product or service being sold, the more expensive the advertisement.
To put this data into context, the average monthly PPC client spend is $9,813. But big businesses often spend more, adding up to millions a year in online advertising costs.
You can lower your campaign’s cost per click by increasing your Quality Scores. Quality Score is the result of achieving a higher than expected click-through rate, so increase your click-through rate by writing relevant ads that touch searchers emotionally so they can’t help but help.
For tips on writing super high CTR ads, check out our research on what factors go into the most effective Google Ads ads.
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The first is a method called time of day or ad scheduling. This allows you to specify time slots during the day where your ad can be shown. For example, a brick-and-mortar retailer may want to drive traffic to its physical locations, and using the time of day allows advertisers to limit advertising to the hours or days the store is open.
In addition to greater control over when ads are served, the time of day can be used to reduce costs even in “sub-optimal” windows. If you look at the image below, you will see that the average cost per action (CPA) can fluctuate greatly depending on the time of day. This gives crafty advertisers an opportunity to cut costs when advertising budgets are tight.
CPA by time of day on weekdays and weekends. Note that weekend CPAs are higher than weekdays.
To continue with our real-world retail example above, the same business hoping to drive traffic to a brick-and-mortar store may not make much profit from ads shown to users who live outside of that business’s service area.
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Geotargeting options that apply to Google Ads. This example shows a physical radius of 20 miles around Boston.
This is what makes geotargeting so powerful; This allows advertisers to target the most influential locations. Combined with the time of day, this gives advertisers more control over where and when their ads can be shown.
Another method you can use to keep your ad budget under control in AdWords is device targeting. Again, using our physical store as an example, device targeting allows advertisers to target their ads to specific devices and bid higher for – you guessed it – searches performed on mobile devices.
In the image above, extended campaign bid adjustments are used to change bids based on locations. Advertisers can use bid adjustments in the Tools tab.
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This means that advertisers can bid on more expensive keywords, such as more profitable “near me” searches, because these keywords usually have a stronger commercial purpose and mean that searchers are more likely to complete their search. Store – In our example, a store ad in AdWords.
Although some keywords cost more than others, Google Ads offers an excellent return on investment for advertisers of all sizes. The average costs you can expect to pay will vary depending on your budget and industry, but contrary to popular belief, paid search marketing isn’t just for huge brands with deep pockets – even small moms and pops can spend effectively on business AdWords.
Although Google Ads cost more than online ads on Bing or Facebook, search targeting is hard to beat and these ads are extremely effective at capturing sales when people are ready to buy, making it worth the small additional cost.
As the world’s largest and most widely used social network, Facebook is a true leader in the world of online advertising. It’s not uncommon for a single business to run multiple online advertising campaigns with both PPC and paid social media, and Facebook advertising is a great way to diversify your digital strategy and increase leads and sales.
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Basically, the pricing model for Facebook Ads works the same as Google Ads. Advertisers can install daily
