Discover the Average Advertising Costs for Small Businesses

Depending on your priorities, your expected revenue, and your disposable income, how much you can devote to such initiatives. 


It has never been more accessible to grow your business through online ads. That said, there is a lot of knowledge to wrap your head around, and it can be a little baffling, to say the least, for newcomers to online ads. 

However, you should study the methods of establishing an advertising budget and the average percentages used in their estimates by traditional small companies to decide what number is right for you. Here’s your simple guide to get started! 

Discover the Average Advertising Costs for Small Businesses
Image Source: NeONBRAND 

Advertising with Google Ads

Google is notably the most popular search engine. It is probably no surprise that Google Advertising is the largest online ad network in the world. You get the chance to bring your brand message to consumers looking for companies like yours on both the search engine and Google maps when you run online advertisement campaigns with Google. 

To push more page visits, get more phone calls, and boost foot traffic to physical store locations, small businesses use Google Advertising. Many small businesses would add Google Ads to their advertising strategy to optimize their online advertising budget, provided that you can build successful Google Ads campaigns on any budget.


For Google search ads, various variables will affect the average advertisement expenses. CPCs are distinct from one geographical position to the next. They vary between industries as well. You more encounter a higher than average cost per click if you are employed in a more competitive industry, or there is more competition in your current place. 

On the Google Advertising site, an ad’s average cost is between $1.00 and $2.00 a click. On average, small businesses making $100,000 to $120,000 a year that use Google Ads as part of their online advertisement strategy end up spending between $9,000 and $10,000 per month.

Google Display Network

Ads on the Google Display Network appear to have lower click-through rates than Google search engine advertising. However, to develop your company, there are attractive targeting options and remarketing possibilities that allow you to take advantage of this ad network. 

The higher the click-through rates you can reach, the greater the investment return on your ad spending. For an ad on the Display Network, the average cost per click is $0.58. Again, depending on your organization’s sector, the overall cost can be more or less. 

While most sectors strive to have an inexpensive cost per click on the display network, a greater CPC of $1.66 per click is faced by companies in the job services industry. This is followed by the $0.88 CPC average for the real estate industry.

Advertising via Facebook

The pricing model for Facebook Advertising is very close to the search pricing model for Google. For its ad campaign, brands that advertise on Facebook will set a daily or weekly budget. And the advertisements are paused until this budget has been met. 

You have power over how your budget is distributed by using Facebook ads. For various promotions, you can set maximum bids. You may also place bids to regulate how much you spend on getting users to take individual acts, such as installing your app or signing up for your email marketing list, in addition to your regular budget. 

For a Facebook ad, the average cost per click is $1.72. The average CPM is $7.19, or the cost of 1,000 impressions. Although the average budget suggested depends on several variables, including your field, niche, and venue. 

Many small businesses are planning to invest $0.50 per fan to $1.00. This will need to be tailored according to your objectives (brand recognition, app downloads, website visits, etc.).

Instagram Advertising

Instagram’s overall advertisement expenditures were well below those of Facebook ads. In reality, CPM used to be around half the price of CPM for Facebook ads for Instagram adverts. The average CPM was between $5 and $6.50 when Instagram first allowed advertisers to launch ad campaigns on the social media site. 

However, recently, the difference between Facebook and Instagram advertisement prices has now become much smaller, making the average cost of advertising on Instagram very close to the average cost of advertising on Facebook. 

For Instagram, the average CPM is now about $10, which is very close to the same price as the average CPM for Facebook.

Discover the Average Advertising Costs for Small Businesses
Image Source: William Iven (Unsplash)


You can start preparing your own marketing campaign now that you know the average advertisement costs for three of the significant ad channels used by small companies today. 

The above figures are just an estimate. The actual spending on ads on these online advertising platforms would rely on your industry, location, ad goals, and other variables that affect pricing.