8 minut czytania

How much does online advertising cost? Billing models, pricing, and channel comparison.

How much does online advertising cost? Billing models, pricing, and channel comparison - photo #1

how much does online advertising cost

Contents

You are now reading:

How much does online advertising cost? Billing models, pricing, and channel comparison.

Close

Until recently, the word "advertising" was associated primarily with television commercials or street billboards. Today, effective marketing campaigns increasingly take place online.

There are countless ways to advertise online – you can place banners or ads on websites, promote content on social media, or pay to have your website's link appear at the top of Google search results. How much does online advertising cost? Find out!

Internet advertising – what is it all about?

The internet is now essentially a separate world, functioning parallel to the real world. Due to its vastness and diversity, it's increasingly difficult to maintain a completely natural presence. That's why online advertising is so important, allowing many companies to establish their presence and attract customers.

There are many ways to promote yourself online, and it's not an easy task, especially for newbies. Experts in this field also need to constantly update their skills, as the online world is changing rapidly. What was highly effective yesterday may be counterproductive today.

(The rest of the article can be found below the form)

Fill out the form and schedule a call with an expert

We'll get to know your business and prepare a personalized quote for the optimal marketing mix. Completely free.

The controller of your personal data is Verseo, a limited liability company with its registered office in Poznań, at ul. Węglowa 1/3.

About Verseo

The Company's registered office is located in Poznań. The Company is entered in the Register of Entrepreneurs maintained by the District Court for Poznań – Nowe Miasto and Wilda in Poznań, 8th Commercial Division of the National Court Register, under KRS number: 0000910174, Tax Identification Number (NIP): 7773257986. You can contact us by mail at the address provided above or by email at: ochronadanych@verseo.pl

You have the right to:

  1. access to your data,
  2. rectification of your data,
  3. request deletion of data,
  4. processing restrictions,
  5. object to the processing of personal data,
  6. transfer of personal data,
  7. withdrawal of consent.

If you believe that we are processing your data contrary to legal requirements, you have the right to lodge a complaint with the supervisory authority – the President of the Personal Data Protection Office.

We process your data for the purpose of:

  1. handling your inquiry, pursuant to Article 6(1)(b) of the General Data Protection Regulation (GDPR);
  2. marketing purposes consisting in the promotion of our goods and services and ourselves in connection with the consent you have granted, pursuant to Article 6(1)(a) of the GDPR;
  3. securing or pursuing possible claims in connection with our legitimate interest, pursuant to Article 6(1)(f) of the GDPR.

Providing your data is voluntary . However, without it, you will not be able to send us a message, and we will not be able to respond to you.

We may transfer your data to trusted recipients:

  1. providers of tools for: website traffic analysis, sending marketing information.
  2. entities responsible for hosting (storing) the website and personal data.

We will process your data for the period of:

  1. necessary to achieve the specific purpose for which they were collected, and after its expiry for the period necessary to secure or pursue any claims
  2. in the case of data processing based on consent until its withdrawal. Withdrawal of consent does not affect the lawfulness of processing prior to withdrawal.

We do not process personal data in a way that would involve making solely automated decisions about you. More information regarding the processing of personal data can be found in our Privacy Policy.

There are many advertising channels and methods used online. The most popular include: 

  • SEO,
  • Google Ads campaigns: sponsored links, product campaigns,
  • social media campaigns (e.g. Facebook, Instagram),
  • YouTube video campaigns,
  • banner campaigns on Google Display Network,
  • re-marketing,
  • email marketing campaigns,
  • influencer marketing,
  • publication of sponsored content,
  • word-of-mouth marketing.

But that's not all! New promotional channels are constantly being created, including through emerging websites and apps.

Basics of online advertising – billing models

Online advertising costs should be considered based on the applicable payment models. There are several of these, too. Most often, they are dictated by a specific system and service. When purchasing advertising, the client should assess (or consult with specialists) which payment model will be most cost-effective. The most popular forms are:

  • CPC – cost per click (or PPC – pay per click) covering payment for each click on an advertisement (banner, link, etc.);
  • CPM (cost per mile) – settlement for every 1000 ad impressions (regardless of conversion), most often used in image campaigns;
  • CPV (cost per view) relating to payment for each ad display, used primarily on YouTube and similar sites; payment applies only if the user watches at least 30 seconds of the ad (or the entire ad if it is shorter);
  • CPL (cost per lead) – settlement for each user registration or contact acquisition;
  • CPA (cost per action) – settlement for specific actions performed by the user on the website, e.g. "liking" a post;
  • CPS (cost per sale) – settlement based on the number of sales transactions finalized through advertising; characterized by high commissions.

As you can see, the methods for calculating advertising rates vary greatly. Therefore, pricing for various promotional channels varies significantly, making comparing the profitability of specific marketing campaigns difficult, especially for a layperson.

What else does the cost of online advertising depend on?

Billing methods and the location and timing of publication are just the tip of the iceberg when it comes to the factors that determine online advertising costs. It's worth remembering that in most cases, AdWords campaign prices are determined entirely individually.

Much depends on the chosen channels, but also on the target group or area of ​​operation, and, of course, the cost of customer acquisition that a given company can afford. One nail polish company might acquire customers for 20 cents, while another might acquire them for 1 złoty, and in both cases, the marketing campaign can be effective and profitable.  

Of course, the necessary advertising expenses will also depend on whether you decide to go it alone or rely on experts. The latter option is obviously more expensive, but it's worth remembering that it usually translates into much larger and more noticeable profits – acting blindly, without the necessary knowledge and experience, it's very difficult to allocate your advertising budget to achieve your intended goals and maximize the value of your channel.

Online advertising – start with positioning

Online advertising is often understood solely as paid links, banners, and videos, but its true foundation is positioning. SEO (search engine optimization) is used to build a brand's image while simultaneously increasing website traffic and gaining new customers.

SEO requires months, even years, of consistency and the implementation of carefully crafted strategies. This is one reason why it's often overlooked or considered the least effective form of advertising. In reality, however, the opposite is true – SEO produces the most visible and, above all, lasting results. However, the results take time to materialize.

Of course, it's important to remember that SEO isn't always justified – if you're in a competitive industry and don't have a sufficient budget, you might just end up wasting your money – which is why it's so important to consult with specialists who can assess which channel makes the most sense for your budget and industry.

You can even conduct SEO activities on your own – there's no shortage of literature and courses on the subject. However, it's worth knowing that the best results come from professionally developed and implemented plans. How much does working with an SEO agency cost? Prices range from a few hundred złoty per month to several or even tens of thousands of złoty. Typically, however, most companies' SEO budgets range from 2 to 10 złoty.

Google Ads – the most popular form of advertising on the internet

When talking about online advertising, many people think of Google Ads campaigns (formerly Google AdWords) . This is the most obvious, yet quite complex, form of promotion, which, when properly implemented, can be extremely effective.

The most commonly used are so-called sponsored links – these are CPC text ads visible above the search results for specific phrases (keywords) or in lower parts of the page.

Google Ads advertising prices are determined by bidding. This means that individual companies wishing to advertise for the same keyword determine how much they are willing to pay for a click on a sponsored link (maximum CPC bid). This determines the links' positions in search results. Advertising costs are therefore inextricably linked to the competition in a given industry and the advertising budgets of individual companies operating similar businesses.

Google provides an approximate rate for placing a link at the top of the page, as well as the competitiveness of a given phrase. Specifics? Sometimes, the CPC will be a few cents. Sometimes, it can be several dozen zlotys. It all depends on the area you want to promote in. In the case of AdWords advertising campaigns for Verseo, the cheapest click was 5 cents, and the most expensive was over 200 zlotys.

The variability of AdWords advertising costs is one reason why running a profitable marketing campaign is not easy. It's best to trust professionals to manage your budget to achieve optimal results. 

How much does online advertising cost – Google Product Campaigns

AdWords advertising campaigns also include Product Listing Ads (PLAs) for online stores. In this case, instead of standalone links to the website, a specific product and its price appear above the search results.

The costs per click are then noticeably lower – on average, ranging from a few dozen groszy to a few złoty – although their amount also depends on the products being promoted and the competitiveness of the area. It's also worth remembering that product advertising is quite narrow in nature, so promoting an entire product range can be quite expensive. Therefore, it's recommended to start with individual categories.

Display advertising on Google Display Network

The Google Display Network is a tool that allows you to reach new audiences with your message. Marketing campaigns conducted within this network allow you to place banners, videos, or multimedia content on websites that meet the criteria specified by the client.

In this case, the cost per click typically ranges from a few to a few dozen cents. This type of advertising is considered less effective, but it works well in image-building and reach campaigns, for example.

Remarketing – another type of display advertising

Remarketing is a more effective and popular form of display advertising available in AdWords campaigns. It involves displaying advertising content (usually banners) to people who have previously visited your website or, for example, visited your store but did not make a purchase.

This type of promotion helps remind potential customers of an offer that has already piqued their interest and often helps prevent them from losing out to competitors. Remarketing campaigns are also priced based on clicks. The cost-per-click (CPC) averages just a few dozen cents. Importantly, these types of ads are divided into two types:

  • static – the same banner for all recipients,
  • dynamic – banner content based on products or categories viewed by a given user.

Remarketing can also reach people who, for example, watched videos from your YouTube channel or visited your website and then searched for further information on Google. Therefore, the type of activities can be tailored to very specific needs, which affects the cost-effectiveness of this solution, provided it is implemented wisely.

Social media advertising

Another popular advertising channel is Facebook. The world's largest social networking site offers numerous paid promotional options, the most popular being boosted posts.

This allows specific content to reach a much wider audience. Post promotion generates significantly greater reach and leads to more people visiting your Facebook profile, and often your website as well. The costs of such ads can be calculated based on the number of views (averaging a few zlotys per 1000) or link clicks (averaging from 1 to a dozen zlotys, excluding highly competitive industries).

Facebook also allows you to set up targeted ads to attract new "fans" to a specific profile. In this case, each new "like" costs anywhere from a few dozen cents to a few zlotys. Costs vary depending on, among other things, the target audience.

Instagram, which belongs to the Facebook empire, also offers similar advertising mechanisms, but promotion there is slightly cheaper.

YouTube Ads

YouTube has recently become a very popular channel available for AdWords advertising campaigns. The huge number of users who use the site every day is certainly noteworthy. It's the best place to post video content – ​​but it's worth remembering that it doesn't have to be long or complex.

Advertisers can use various video ad formats. The most popular are TrueView In-Stream ads, which appear before, after, or during video playback. These are longer clips that can be skipped after 5 seconds. Payment is made using a CPV method and only covers views that last at least 30 seconds (or the entire ad, if longer). The average cost is a few cents per view.

Bumper ads are also popular – short, unskippable ads lasting a few seconds. They are billed on a CPM basis. Typically, the cost per 1000 views ranges from a few to a dozen or so zlotys. However, there are many more opportunities for advertising on YouTube – well-thought-out and well-executed YouTube campaigns are an excellent advertising tool.

Advertising on the Internet – is it worth it?

As you might imagine, online advertising delivered through multiple channels simultaneously, combined with a well-thought-out SEO strategy, yields the best results. These activities can be implemented on a small scale, most often used by local businesses, or on a very large scale.

Their cost depends largely on reach, but also on the competitiveness of a given industry and target group. So how much does online advertising cost? It depends, of course.

A small company can operate effectively for just a few hundred zlotys a month, while large stores and corporations often have advertising budgets of tens of thousands of zlotys. Is it worth it? Absolutely! However, remember that if you want effective advertising, it's worth trusting the professionals.

Our advertising price list will certainly help you answer the question of how much online advertising costs . It shows you the cost of running a marketing campaign depending on the channel and budget.

Summary

The above article covers the following topics:

  • Online advertising has become a key tool for building brand presence in the dynamically changing virtual world, offering a variety of channels for reaching customers, which, however, require constant training and updating of strategies.
  • Choosing the optimal online advertising channel depends on understanding the various payment models, such as CPC, CPM or CPS, which determine how you pay for clicks, impressions or specific sales results.
  • The cost of online advertising is an individual matter, depending on the specific industry and target group, but the involvement of experts usually guarantees more effective use of the budget than independent actions.
  • Positioning is a solid foundation for online advertising, which, despite the long waiting time for results, offers the highest effectiveness, provided that the strategy and budget are adapted to the competitiveness of a given industry.
  • Google Ads and Social Media systems offer a wide range of advertising formats – from sponsored links and product ads to remarketing and YouTube videos – the costs of which depend on the competitiveness of the industry and the precisely selected billing model.
  • Effective online advertising is based on combining multiple channels with positioning, and its cost is flexible and depends on the scale of activities, which, with the support of professionals, guarantees a high return on investment.