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Online Advertising Costs

Media Costs
Online advertising costs vary widely. Ads are sold either CPM (which stands for cost per 1,000 ad views) or CPC (cost-per-click). We asked media buyers who buy online advertising what the typical rates are. Their comments are in italics.

Online ads to reach consumers:
Can cost as little as 50 cents per thousand impressions if you buy remnant ad space through an ad network. Ad networks sell ads from many different online publishers. You may not be able to determine where your ads appear.
Ads on Yahoo and AOL cost in the $7 range

Online ads to reach a business target audience:
Range from $10 to $40 CPM (cost per thousand ad views) for a high profile site.

Depends on the site, but most sites reaching micro-small business people seem to be in the $8 - $12 range for run of site banners. Manta is around $10. Sites like American Express charge a lot more ($40CPM) due to the additional data they have.

I would estimate if you have 1 million visitors to be somewhere between a $35-$50 CPM, which means it would cost $35k-$50k. But the pricing should be adjusted based on response rates. So, if people are less likely to engage with an ad than other competitive ad products, the cost would need to be adjusted accordingly.


Online banner costs vary by the type of banners (flash versus rich media banners) or by banner sizes/placement.
A homepage takeover on a major portal can cost over $1 million per day.

Online video ads have gained popularity in recent years as more and more advertisers are using video as an alternative to TV. Like banner ads, you can buy video placements either based on a CPM basis directly with online media vendors, or a CPC basis with video ad networks.

Online ad buys are also subject to additional ad serving costs, which can be higher for rich media/video ads and for a higher number of impressions served.

TIP: See Top Suppliers for Advertising Media Planning and Buying for links to Ad Networks and other sites that will help you determine costs.

Cost range for production costs for online advertising:
$2,000 - $25,000 for standard flash banners, dependent on animation complexity

$25,000 - $75,000 for rich media banners. The high end of the range is usually for homepage takeovers on major online sites.

Online ads should have a ad landing pages created to maximize conversion. Those typically cost $20,000 - $200,000, depending on the complexity of the site. Note: These costs are for production only. Creative agencies also charge a creative fee for concepting and designing ad landing pages.




Advertising Cost Rate