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How Much Does Banner Advertising Cost?

How Much Does Banner Advertising Cost?

What should be the budget of a banner advertising campaign? It is difficult to find an unequivocal answer to this question if you don’t analyze in detail all the factors that affect the prices of display ads and don’t find out what exactly affects the budget. Many businesses, especially small ones, believe that banner advertising is a pretty expensive activity, but this is not the case and there are many opportunities to advertise inexpensively and with high results.


Banner advertising is quite a popular marketing tool. It allows you to interact with many target customers and reach them precisely when they are most likely to make a purchasing decision—while actively searching for products on Google or browsing partner websites. At the same time, banner advertising is also visually attractive and allows you to creatively present your business. According to forecasts, spendings on banner advertising is projected to reach $174.4 billion by 2024.

banner statistics

* the material is taken from

Basically, a banner is a visual display of advertising in the form of images or multimedia elements strategically placed on the right pages of sites. It can be static, as well as animated formats, the tasks of which are: to attract the attention of viewers and motivate them to further interact with content.

The tasks of banner advertising are relevant to all businesses:

  • increasing brand recognition;

  • attracting visitors to the site;

  • specific promotion of products or campaigns;

  • sales and order processing.

Budget allocation is an important process because brands do not always have unlimited possibilities. That's why it's important to understand the ins and outs of banner advertising pricing to effectively allocate your marketing budgets and achieve optimal ROI.

Average cost of banner advertising

Real bids for key queries and display ads for your business can only be obtained by running test campaigns. But, understanding the factors that affect the average cost can give you an idea of ​​the necessary budgets already.

The average ad spends per Internet user in the banner advertising market is expected to reach $31.5 in 2024 (according to

At the same time, prices are affected by:

  • industry and ad campaign parameters
    This encompasses the field of activity and demographic indicators of the audience, the location of the ad, and the chosen advertising platform.
    On average for:
    • display banner ads you will pay from $0.5 to $2.00 per thousand impressions (CPM);
    • advertising on social media such as Facebook, Instagram and Twitter, you should aim for $2 — $10 per thousand impressions (CPM);
    • site traffic you can pay the price from $5 to $30, depending on the popularity of the resource and relevance of the audience.
  • formats and sizes of banner ads:
    Each of them affects the price differently:
    • standard banner ad sizes include horizontal (728x90px), medium rectangle (300x250px) and skyscraper (160x600px). Larger banner sizes may have higher prices due to better visibility;
    • multimedia ads include video, animation, so they offer enhanced interaction and usually have higher cost compared to static formats.

Although banner advertising is the most effective, it is worth considering its economic efficiency compared to other advertising channels:

  • search ads (PPC) can be more expensive than banner ads, with average CPCs (cost per click) ranging from a few cents to several dollars.

  • video ads displayed on platforms like YouTube often have higher production costs and CPM rates compared to banner ads: $10 to $30 or more.

Understanding the average costs of banner advertising allows companies to make informed decisions when allocating their marketing budget.

Factors affecting the cost of banner advertising

So, the main factors can be identified:

  • size and format of the banner ad, that significantly affects its value (logically, larger and more visually attractive types command higher prices due to good visibility and attraction potential);

  • ads at the top of the page or on pages with high traffic usually have higher bids;

  • ads, placed within the relevant content or on the sites with a special audience, may also have a premium price;

  • orientation to a certain specific audience has an impact on the general budget;

  • different ad platforms and networks have different pricing models: if your traffic is higher than average, be prepared to pay more cost for advertising;

  • design and quality of advertisements affects the prices because high-quality content attracts attention, and you can get more clicks and conversions for the same price.

Understanding these factors, advertisers can optimize banner ad campaigns for best ROI results.

So, if everything is clear about the cost of advertising, then we proceed to the next point: banner ad design.

There are two ways:

1. Order production from the designer

Pros: the specialist's experience with the principles of graphic design, branding and visual communication ensures that the banner ad will effectively attract audience attention and convey the desired message.

Cons: the designer does not have detailed knowledge of your business and the audience, so you need to create a detailed technical task and monitor the work.

Cost: varies greatly depending on the experience of the designer, the complexity of the task and the execution time. Prices on freelance platforms like Fiverr can start as low as $5 for basic designs, but can go up to $100+. For agencies, the hourly rate can range from $50 to $200 per hour.

2. Create a banner yourself

There are many tools that allow you to work on graphics even without design skills. The best option is BannerBoo, which has extensive functionality and 12,000+ ready-made templates available for editing.

Pros: design options are available, including different sizes, formats, fonts, colors and graphics, allowing to customize banners according to the needs of branding and marketing tasks. Moreover, the process is efficient and fast.

Cons: you need to have ideas for advertisements and prepare texts yourself.

Cost: many banner creation tools offer free basic plans with limited features, and premium plans starting at $15 per month.

Using BannerBoo as a banner creation tool is a more cost-effective option, especially if you need to update your ads frequently. We offer accessibility from anywhere in the world, flexibility and ease of use, allowing users to create professional banners without design skills. Check out video instructions for creating banners in BannerBoo and see for yourself the benefits of the tool.

Once you clearly understand your estimated budget, it becomes significantly easier to forecast the launch costs and anticipated results. To plan everything correctly, it is necessary to take into account all factors.

So, what needs to be done:

  1. Decide whether to create the banner campaign yourself, considering the cost of using specialized graphic editors, or opt for assistance from a designer, factoring in the expense of working with a professional.

    Important! If you decide to use the services of a third-party specialist, remember to allocate time in your budget for the search process, as it can be rather time-consuming and resource-intensive. If you require advertising promptly, keep in mind that it may not be a quick process.

  2. Determine the platforms for placing ads because the budget will depend on the platform, placement and the pricing model (for example, CPC, CPM).
  3. Define targeting parameters

    Advertising networks show approximate results for selected targeting options (geography, demographics, interests, etc.), which you need to evaluate and understand if they are right for you:

    Facebook Ads

    facebook indicators

    LinkedIn Ads

    linkedin indicators

    Google Ads

    google indicators

Important! Advertising platforms charge taxes for the use of their services, so include these costs into your overall budget.

In this case, the overall campaign budget will appear as follows:

  1. we make banners in BannerBoo = $0 (provided that the free plan is used);
  2. choose Google Ads with a price of 1 USD for 1000 impressions * 500 impressions = 500 USD;
  3. add commission: $500 + 20% = $600.

If your product or service has a revenue of $10 per sale, then you need 60 sales per month (2 sales per day) to break even on advertising costs.

To optimize ROI, it's important to monitor campaign performance and adjust ads based on actual results.

Tips for reducing banner advertising costs

Of course, there are ways to optimize your banner advertising to reduce budgets while still getting high results. More details about these strategies.

  1. Focus on a specific target audience (cover relevant targeting metrics, and even if you will be paying for these people more, the ROI will still be much higher than when advertising to general groups);
  2. Optimize your ads: experiment with different formats, images, texts and CTA to improve performance and increase click-through rate (CTR);
  3. Change the design of advertising banners in accordance with the marketing strategy;
  4. Use ad templates because they offer a professional design, save money and time for its production;
  5. Experiment with performance-based pricing models: CPC, CPM or CPA to get more results;
  6. Monitor the effectiveness of banner advertising campaigns: click-through rate, conversion rates and return on investment to identify ineffective ads and stop them;
  7. Compare bids, reach and parameters on different platforms (Google Ads, Facebook Ads, LinkedIn Ads), choose the most effective and optimize budgets;
  8. Set limits: user can only see the banner a certain num-ience burnout and reduces unnecessary impressions).

bannerboo pet template

*example of a Pets template by BannerBoo

Constant optimization of advertising and its visual component, a guarantee of budget savings and consistently high interaction rates.


Banner advertising has been, currently is, and will remain one of the most popular and effective online marketing tools for a long time. However, understanding cost and goals is critical to maximizing ROI and optimizing ad efforts.

As technology and consumer behavior continue to evolve, staying abreast of new trends and best practices in banner advertising is critical for businesses who trying to stay relevant to a target audience. At the same time, do not forget about experiments! Only by testing various formats and strategies of banner coverage, you will be able to find the most successful and effective combinations.

Frequently asked questions

How much is spent on banner advertising?

Advertising budgets depend on the audience, advertising platform, industry, geographic location and level of competition. Billions of dollars are invested in banner advertising worldwide each year, and spending continues to rise.

How much do banner ads usually cost?

On average, a banner ad can cost from a few cents to a few dollars per click (CPC) or per thousand impressions (CPM). The cost of advertising may also vary depending on the selected advertising platform and payment level of target audience.

How successful are banner ads?

Although some studies indicate a decrease in the total click-through rate (CTR) for banner ads, they still play a significant role in building brand awareness, increasing site traffic and influencing on purchase decisions if used effectively.

Why use banner ads?

The main advantages of banners:

  • increasing visibility and awareness of the brand;

  • new creative solutions for companies;

  • targeted coverage of the desired audience segments;

  • economic benefit, compared to traditional advertising channels;

  • measured efficiency.

How do banner ads make money?

Banner ads generate revenue through various pricing models, including:

  • cost per click (CPC): payment every time a user clicks on a banner ad and goes to the site;

  • cost per mille (CPM): pay for each thousand impressions of a banner to users, regardless of the number of clicks;

  • cost per action (CPA): payment for each conversion action after clicking on the banner ad.

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