Advertising Cost Expectations in Digital: 2023

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Advertising Cost Expectations in Digital: 2023

Advertising Cost Expectations

Digital advertising is loaded with opportunities, yet navigating it can be quite a pain. With platforms such as Google Ads, Facebook (Meta) Ads, and LinkedIn offering varied options, it’s essential to understand the performance metrics to set realistic expectations. In this article, we’ll focus on:

  • Google Ads Display Campaigns
  • Google Ads Search Remarketing
  • Facebook Landing Page View Cost Per Click (CPC)
  • LinkedIn Landing Page CPC

1. Google Ads Display Campaigns

Display campaigns through Google span a broad network of websites, news pages, blogs, and Google sites like Gmail and YouTube. These campaigns allow advertisers to show ads in a variety of formats, such as texts, images, videos, and rich media.

Performance Expectation:

  • Average CPC: Historically, the average CPC for display ads is generally lower than search ads. As of my last update in January 2022, this can be anywhere from $0.50 to $2.00. This range varies based on the industry, targeting methods, and ad quality.
  • Click-through rate (CTR): Display ads generally have a lower CTR than search ads, often averaging around 0.5% to 1%. That said with strong audience understanding we strive for a 1.5-2%

2. Google Ads Search Remarketing

Search remarketing, also known as Remarketing Lists for Search Ads (RLSA), allows advertisers to customise search ads campaigns for users who have previously visited their website.

Performance Expectation:

  • Average CPC: Remarketing campaigns tend to have a higher CPC than standard search campaigns because you’re targeting users already familiar with your brand, making the bid competition steeper. The CPC can range between $1 to $4, depending on the industry and competition.
  • CTR: Expect a higher CTR for remarketing campaigns compared to standard search campaigns, often around 3% to 5%, since the audience is already acquainted with your brand.

3. Facebook Landing Page View CPC

Facebook uses a bidding system similar to Google. However, its metrics are somewhat different. One of these metrics is the Landing Page View, which measures the number of times a user clicked on an ad link and loaded the destination URL.

Performance Expectation:

  • Average CPC: Based on January 2022 data, the average CPC for Facebook landing page views across industries is between $0.50 to $2.50. Again, the variance is attributed to factors like audience targeting, ad quality, and industry type. Again we look to target the lower end of this through well thought through strategies and audiences.

4. LinkedIn Landing Page CPC

LinkedIn, being a platform geared more towards professionals and B2B marketing, often has a different pricing structure and audience behavior.

Performance Expectation:

  • Average CPC: LinkedIn ads tend to be on the pricier side when compared to Google or Facebook. As of 2022, you might expect CPCs to be in the range of $4 to $9. This higher cost reflects LinkedIn’s niche audience of professionals and decision-makers.

These figures serve as guidelines and can vary based on multiple factors like audience targeting, ad quality, ad relevance, and more. Moreover, these numbers might have evolved since 2022. Therefore, it’s crucial to stay updated with the latest trends and platform updates. (imexperts thing!)

However, by setting the right expectations, businesses can allocate budgets more efficiently and develop strategies that get leads and good traffic.

Also published on Medium.

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