Costs for Display Ads
Different ways on how Display Campaigns are priced
When buying display ads there are different options on how a media channel may charge you for the placement of your display ads on its website:
Cost Per Mille (CPM)
CPM (Cost Per Mille) is one of the most common pricing models in online advertising. When purchasing a campaign based on CPM, advertisers are charged for every 1,000 impressions of their banner ad. Each time an ad is displayed on a user's device, it counts as one impression. Since the cost of a single impression is very low, the industry standard is to multiply this price by 1,000 to determine the total cost per thousand impressions.
Pay per click (PPC)
PPC (Pay Per Click) is another widely used pricing model for Display ads where advertisers are charged only when a user clicks on their banner ad. This model is commonly used for the text ads in search engine advertising (Google Ads, Bing Ads).
The cost per click (CPC) varies based on several factors, including:
- Industry & Competition: Highly competitive industries (e.g., finance, insurance) tend to have higher CPCs.
- Target Audience & Keywords: Keywords with high purchase intent generally cost more.
- Ad Quality & Relevance: Platforms like Google Ads reward high-quality ads with lower CPCs through their Quality Score system.
PPC is mostly used for performance-driven campaigns, where advertisers want measurable results such as conversions, lead generation, or direct sales. Less quality websites tend to be more open to negotiate with advertiser about PPC deals, since they are sometimes struggling to attract customers via CPM model.
What is the perfect budget for on Online Display campaign in 2025?
The perfect budget for an online display campaign is difficult to estimate as it depends on various factors: A nationwide campaign naturally requires a higher investment than if you only run your campaigns locally in a single city. The CPMs, and therefore the total budget you need to invest, will also depend on which websites you have chosen. It's best to try out our planning tool, as it will give you good budget suggestions based on the other parameters of your campaign.
How Much Do Display Ads Cost in 2025?
Online advertising prices vary based on factors such as ad format, sites the ad appears on, and targeting. Here’s a breakdown of estimated costs:
- CPM Display Ads: Ranges from $1 to $10, depending on placement and targeting.
- Google Ads PPC (Pay-Per-Click): Costs vary between $0.50 to $5 per click.
- PPC Digital Marketing: Prices depend on sites that you select and ad formats averaging $1 to $10 per click.
If you are looking for a cheap online display campaign, maybe our tips on how to create a cheap online display campaign for small business may help you.
Want to know the exact prices for your campaign? Use our advertising planner to get an instant estimate and launch your campaign in just a few clicks!