What Is the Average Cost for Web Advertising?


Online advertising has consistently grown in popularity as an advertising option for companies in the United States. eMarketer estimates that spending on online advertising will exceed $40 billion by the year 2013. If you’re interested in incorporating web advertising into your own company’s marketing plan you’ll need to estimate the average cost so that you can adjust your marketing budget accordingly.

Web Advertising

Web advertising allows you to reach potential customers who frequent online websites and search engines. The most common forms of web advertising are traditional banner advertising and pay-per-click advertising. With banner advertising, you must contact website owners directly to establish a campaign. With pay-per-click advertising, you must establish an account with an ad services company to deliver targeted advertising to many different websites where your potential customers may visit.


Many business owners opt for web advertising because they can track interest in the ads more efficiently. When customers click the advertisement, it sends tracking information to the company so that you can make educated decisions about how to advertise online in the future. The primary benefit is that online advertising is usually less expensive compared to other options, like outdoor or television advertising. It sometimes allows small businesses to compete with larger operations.

Average Costs

The average cost of banner advertisements ranges from about $15 to $50 for every thousand impressions (also called CPM or cost per thousand impressions), according to estimates by Benchmark Communications, a marketing and advertising company. Highly targeted advertisements for in-demand topics like travel can cost you as much as $100 CPM. Pay-per-click (PPC) advertisements on networks like Google Adwords average $1.24 per click according to estimates by Hochman Consultants, an Internet marketing company.

Other Considerations

You can use these estimates as a guideline for your initial budget, but you must contact Internet advertising firms directly and explain your situation to get an exact quote. The required fees vary depending on the subject matter and keywords you wish to target (in the case of PPC). Keep in mind that you may also have to make a minimum investment when initiating a banner ad campaign. After you’ve submitted your first round of advertisements it is important to then monitor the results so that you can spend your money more efficiently in the future.

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