Online Advertising Rates

Spending on online ads will surpass that of printed media combining newspaper and magazine advertising for the first time this year in the United States, according to eMarketer forecasts.

Online ad spending in the U.S. grew 23% to $32.03 billion in 2011 and will grow 23.3% more to $39.5 billion in 2012, eMarketer said. That will put it above total U.S. magazine and newspaper spending, which will fall 6.1% to $36 billion this year, said the report.

More people spending more time online, a perception that online ads are more measurable, and a growing comfort by advertisers in ad campaigns that integrate multiple channels, including online. Nonetheless, television will remain dominant through at least 2016, according to eMarketer.

Here is an extract / summary of the report.

The cost of online advertising would naturally vary because it would depend on the type of ad, advertising arrangement and advanced options like targeted delivery. Users can distribute some ads, like those that double as informative articles, at no cost. Fixed cost advertisements vary in cost depending on the size and popularity of the advertising website, and the price of pay-per-click advertisements depends on how many users actually click on the ad.

In other words, Online advertising costs have a broad range based on the web site you want to advertise on. The more traffic, page views and hits the page receives the more the website publisher would charge for advertising on their site.

A common method advertisers use is the Google Adwords. If you've ever search on Google and seen a column of sponsored links just to the right of your search results, that's Google AdWords. It is separate from our search rankings, and lets businesses advertise to just the people they want to reach. Search and advertising giant Google recommends that new advertisers start with a budget of around $10 to $50 per day, but variables like keywords, market segment and even geographic area may require considerable adjustment to these amounts.

Advertising Cost Comparison Chart

Medium	Cost	Campaign Term	Audience Reach
Local Television	30 seconds in top 10 market: $4,000 to $45,000+.	Purchased throughout year or scheduled in flights.	Large number of consumers but a small target audience.
Network Television	30 seconds in prime time: $80,000 to $600,000.	Purchased in small flights due to high cost.	Very high number of consumers with very low ROI.
Cable Television	30 seconds in prime time: $5,000 and $8,000.	Purchased throughout year or scheduled in flights.	Lower number of consumers but offers better audience targeting.
Radio	60 seconds: $200 to $1,000.	Purchased in flights that center around specific events.	Depends on station. Good reaction numbers but at a high cost.
Magazines	National Magazine: $50 per 1,000 issues. Local magazine: $120 per 1,000 issues.	Sold as annuals, specific months of publication or special issues.	Depends on circulation. Response rates very low.
Direct Mail	Letter-sized envelopes: $15-$20 per 1000. Single sheet newspaper insert: $25-$40 per 1000 issues.	Unlimited.	Very low response rate.
Search Engine Optimization	$15,000-$75,000 per year.	Typically in 6 or 12 month terms.	Exceptionally high ROI as visitors are seeking your products and services and return to become regular customers.

Here is an educational video that explains how much advertisers are paying to get their message in front of people.

Online Advertising Rates
Regional interest / Region City
1. United States [online advertising rates]
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Online Advertising Rates

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Monday, 1 July 2013

Online Advertising Rates

Advertising Cost Comparison Chart