How much do display ads cost

But we're going to break it down. In digital marketing, pricing isn't influenced by the format of the ads, but rather the commercial intent of and competition for the keywords they are bidding on.

That's on the Search Network. However, in super-competitive markets, clicks can get much pricier. Listed below are the most expensive keyword categories in Google Ads, and the average cost-per-click of each. You can check out the full infographic and learn about the methodology behind the data here.

We then ran a second report a few years later. The results were similar, but we did see some new highly expensive keyword niches on the list, and also that average CPC's unsurprisingly had gone up. You can check out the list of the top 25 most expensive keywords here. As Bing is growing in market share, we decided to conduct a similar study to find the most expensive keywords in Bing Ads. Listed below are the most expensive keyword categories in Bing Ads, as well as the average cost-per-click for each:.

You can see the full infographic and the category breakdown here. Of course, these are just some of the hundreds of thousands of keywords that businesses all over the world are bidding on, and costs can vary widely depending on a wide range of factors.

Furthermore, it's important to take ROI into account. These industries can afford high CPC's because the average lifetime value of a customer is so high.

People sometimes like to point at the grand, show-stopping keyword categories above as a definitive example of how expensive PPC can be. The reality, however, is that these keyword categories only make up a small portion of total search volumes. Long-tail keywords actually account for the majority of Web searches. This is the kind of opportunity that long-tail keyword targeting presents to advertisers.

In addition to making up the vast majority of searches, long-tail keywords are also often significantly cheaper than shorter keyword-rich queries and can have as much —if not more— commercial intent. Unfortunately, this is another question without an easy answer. First, we need to look at overall spend data by industry. Image source. When looking into the overall spend of these and other industry verticals , we also saw that there was a degree of overlap between the average CPC of a keyword category and the total spend in that industry.

You can see the full story and results of that study here. These are big brands that bear little resemblance to small businesses with smaller budgets such as potentially yours. What's important to know is that you don't need to spend millions on Google Ads to make it work for your business.

As you might expect, the amount that our clients spend on PPC varies widely. That's still a pretty wide range, but you can at least orient yourself with respect to where you fall on the specturm. Your ad budget will always be the largest, most direct cost associated with your Google Ads campaigns. There are other potential costs you may have to consider, depending on your business, marketing goals , and individual situation.

Some small businesses opt to have an agency handle their PPC work for them. In the figure above, Enhanced Campaign bid adjustments are used to modify bids based on Locations.

Advertisers can use bid adjustments in the Devices tab. Although certain keywords cost more than others, AdWords offers an excellent return on investment for advertisers of all sizes.

While AdWords ads tend to be costlier than online ads on Bing or Facebook, search intent is hard to beat, and these ads are extremely effective for capturing sales right when people are ready to buy, which makes them worth a little extra cost.

Advertisers can set a daily budget for their campaign regardless of what their campaign objectives are , and when that daily budget is depleted, ads are paused until the next day. Advertisers can also set bids to control how their ad budget is allocated. Just like with Google, the Facebook ads auction allows advertisers to control how much they spend on certain actions such as a user downloading a piece of content or signing up for a newsletter in concert with their daily budgets.

This gives advertisers a great deal of control over how and when their ad budget is used. Although Facebook Ads offers advertisers a lot of flexibility in terms of campaign objectives, the costs can still be broken down into real CPCs.

Take a look at this data:. As you can see, Facebook CPCs are low across the board , even in the more expensive industries. As it implies, setting a maximum daily budget means that once your daily maximum has been met — regardless of your campaign type or objectives — your ads will be paused until the next day. Facebook makes it easy to manage your budget without getting stuck in the weeds.

Lifetime budgets function similarly to daily budgets, but instead of being limited to a given day, the lifetime budget refers to the lifecycle of the entire campaign. Overall, Facebook Ads perform extremely well and offer outstanding ROI, particularly for small businesses or brands with a highly niche focus, due to its highly sophisticated targeting options.

Remember: People browsing or wasting time on Facebook don't show as much intent to purchase as people searching for exactly what they want on AdWords, but running Facebook ads is an excellent way to reach new audiences, influencing them toward your brand when they are ready to buy. Instagram campaigns can be managed from the Facebook Ads Power Editor dashboard.

Note that ad creative such as images can be reused seamlessly between the two platforms. Given how Instagram works as a primarily visual platform, ads on Instagram are typically priced using the CPM model. Does the placement of banner ad website ranking have an impact on cost?

Banner ad costs are directly proportional to the ranking of the website on which your ad is featured. Choosing to place your banner ad on higher ranked websites increases the cost accordingly. If you decide to situate your banner ad on a popular search engine like Yahoo!

The downside to this situation is that with such companies, you are restricted to purchasing a minimum number of impressions. For Yahoo! There is absolutely no minimum investment required to create a Google Ads account or run a Google Ads campaign.

Your results will depend, again, on how competitive the niche and keywords you select are, but the point is that you can then increase your budget as necessary. This leads right into the next advantage of Google Ads….

The potential to scale really is unlimited with Google Ads. You can see exactly how many times your ad got served, how many people clicked on it, how many people converted after clicking on it, what time of day the ad is most successful, information about what sorts of users click on your ad, and more. This stands in stark contrast to the ambiguity of other advertising channels. Most forms of traditional advertising — TV, radio, newspaper — come with extremely limited analytics. How much you spend on Google Ads is entirely up to you.

The right Google Ads spend for your business depends on numerous factors, including ad performance, your industry, your goals, the tools you decide to use, and more. Whatever approach you decide to take, Google Ads is a fantastic advertising method for almost any business out there. Worst case scenario, you might lose some of your budget on an unsuccessful test campaign. Just contact us online or call us at to speak with an experienced strategist about Google Ads pricing for your business!

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