If you have just launched a business, then you’re probably wondering how much you should expect to spend on its advertising. Even if you have adequate funds, a rough estimate of advertising costs helps you plan your marketing strategies better.

Below, we have a quick guide to all the costs that you will need to consider when creating your online ad strategy through Google Ads, Facebook Ads, and Instagram Ads.

However, we will suggest, before you start planning strategies to advertise your business, create a website that is ready to be promoted. Invest in a reliable web hosting because until your website is secured enough and has excellent uptime. Another way, no matter how much you spend on advertising, it won’t work. 

According to an article published on Forbes, your website advertising relies on the right web host. So, choose a hosting provider that not only offers the best hosting price but is powerful also.

Guide to Online Advertising Costs for Google Ads, Facebook Ads, and Instagram Ads



1. Google

(Image Source: Udemy)

Google AdWords is the world’s largest online ad platform allows you to put your business in front of customers on both the search engine and Google maps.

With Google Ads, you can launch two different types of Google Ad campaignsSearch and Display Network. Search ads activate when a user inputs a proactive search query in Google. On the other hand, Display Network ads are triggered when matched to relevant page content.

Here are a few basic differences between these two ad types.

When you advertise your business on the Search ads, these ads use a pay-per-click model – that means you will pay each time a user clicks on your ads. With search ads, Google displays ad content that is relevant to users’ search queries. These ads can be seen directly on the search engine results page.

On the other hand, Google Display ads are banner ads displayed across Google’s network. These ads are ideal for businesses who want to advertise on a website having an audience interested in their products or services.

Average advertising costs for Google Search Ads

As we mentioned above, Google Search ads are charged on a cost-per-click (CPC) basis, every time a search engine user will click on your ad, you will be charged a small fee.

CPC is calculated based on an auction process arranged by Google. This is how Google decides which ads to show when a user makes a relevant keyword search. Also, this auction determines the order of your ads.

Both position and CPC of your ad will be decided by the bid (how much are you willing to pay) you set and the quality score of your ads. A quality score is measured on a scale of 1 to 6. The higher your score is, the higher your ad will rank on the search engine results page and lower your CPC will be.

Numerous other factors might impact your advertising cost for Google search ads including your geographic location, competition in the industry, and more. Having said that, the average cost of advertising on Google ads is $2.32 per click for search ad, says WordStream, a popular online advertising company.

Average Advertising Costs for Google Display Network (GDN)

Google Display Network ads have lower Click-through rates in comparison to Google Search Ads. However, they are more appealing and offers remarketing opportunities. According to Lyfe Marketing, the average cost per click for the display network is $0.58. Again, the cost may vary depending on the business niche.

WordStream shares the average cost for GDN and Google Search ads across 20 industries.


2. Facebook Ads Cost

You know Facebook as a popular social media platform, but it is also a popular online advertising platform. Over the years, Facebook ads have proven useful for several brands across the globe. Facebook’s 2018 report revealed an advertising revenue of $16.6 billion.

Facebook ads run across Facebook Stories, Instagram stories, Instagram feed, and Messenger.

Facebook is a great advertising platform for small businesses that want to reach customers who are interested in their products. Moreover, the platform offers sophisticated targeting options helping brands approach relevant audiences based on their behaviors, demographic information, and interests.

Facebook Ad Pricing Model

The pricing model is quite similar to Google’s Search pricing model. Businesses set daily or weekly budget for their ad campaign. As soon as this budget has reached the limit, the ads get paused automatically.

Average Advertising Costs for Facebook Ads

Lyfe marketing says the average advertising prices for a Facebook ad per click is $1.72, and the average cost per 1,000 impressions is $7.19.


3. Instagram

(Image Source: Pexels)

Instagram is a part of Facebook as they acquired Instagram in 2012 for $1 billion in cash. And this acquisition is now helping Facebook to expand its advertising platform.

Over the years, Instagram has turned into an excellent platform for brands to engage with the target audience via compelling images and video ad content.

Instagram Ads Pricing Model

Since Instagram advertising is a part of Facebook advertising, you will find the similarity between their pricing models.

Instagram ads are purchased through a similar type of auction as Facebook ads. Your CPC is then set based on who wins the auction. You can set the budget of your ad campaign for per day, weak or month.

Instagram Ads Cost

As the platform has grown in popularity, the advertising prices on Instagram are higher. When Instagram first launched its ad program, the average cost per thousand visitors was around $6.50. Now, it has reached approximately $10, which is almost similar to average Facebook CPM.


Optimize Your Advertising Costs

These were the average advertising costs for three of the world’s biggest advertising platforms. Remember, the average cost of advertising we mentioned for these platforms is only an estimate to help you plan for your ad strategy. These figures can vary from business to business.