Online Advertising Guide: What You Need to Know in 2024

Types and Costs of Online Advertising

Source: ULifestyle IELTS and KFC Display Ads

• Display Ads:  These ads appear on websites, apps, and social media platforms. They can range from simple banner ads to more interactive multimedia ads. The cost varies based on factors like ad size, placement, and the website's traffic. For example, an online newspaper display ad in Hong Kong can range from HK$150 per CPM (Cost Per Thousand Impressions) to HK$20,000 per week.
  
  

Source: Bellanpallhk

• Social Media Advertising: Platforms like Facebook, Instagram, and YouTube offer extensive targeting options, including age, location, interests, and more. Costs vary greatly depending on these factors and the desired reach and frequency of the ads. The average spend can range from HK$100 to HK$1,500+ per day or up to HK$46,000 per month.
  
  

Source: Google

• Search Engine Marketing(SEM): This involves paid advertisements on search engines. The PPC model is commonly used, where costs are incurred each time a user clicks on an ad. SEM is effective for driving targeted traffic to websites. Again, there is no one-size-fits-all when it comes to online advertising costs. It can range from anywhere between HK$2,000 to HK$80,000, depending on budgets, goals, and such.
  
  

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• Email Marketing: While often overlooked, email marketing remains a powerful tool for reaching and engaging with customers. Costs are typically associated with the email marketing service provider and depend on the size of the mailing list and campaign complexity. For instance, a popular email marketing platform, Brevo, offers these packages with corresponding features(in USD):
  
  
  
  They offer an unlimited amount of contacts across packages but the real costs vary depending on how many emails are sent out per month and the availability of other functions. Most email marketing platforms can be seen operating similarly based on packages.

Source: meshk.net via YouTube

• Video Advertising:  This involves using video content to promote a product or service. It's especially popular on platforms like YouTube, Facebook,and Instagram. Video ads can be more engaging than traditional display ads and often have higher conversion rates. The cost can vary based on video length, quality, and the platform where it's hosted. Even just within YouTube, there are different forms of video ads such as In-Feed Ads, Skippable and Non-Skippable Ads, and Bumper Ads. According to Influencer Marketing Hub, the average cost per view is HK$0.12 to HK$0.23. Meanwhile, a 100,000 view count is roughly to be estimated at HK$15,600.                                                                                                                                                                                                                                                                          
  
  

Source: stxph.h & Dior

• Influencer Marketing: This type of advertising uses individuals with a significant online following to promote products or services. Influencers can be found on various social media platforms and are often chosen for their relevance to the target audience. Costs depend on the influencer's reach and engagement rates. Generally, you can expect a wide range from HK$700 to HK$78,000, from micro to macro influencers. In a celebrity case, it can costs anywhere up to a whopping HK$7,800,000.
  
  

Source: Wiskii via Facebook

• Remarketing/Retargeting: This strategy involves targeting ads to users who have previously visited your website or used your app. It's a way to re-engage potential customers who showed interest but did not complete a conversion. Costs are usually based on the number of impressions or clicks, similar to PPC advertising. The cost structure and average are dependent on the platform that is used.
  
  

• Affiliate Marketing: This is a performance-based advertising model where businesses pay commission to external websites for traffic or sales generated from their referrals. This is common in the blogging and influencer spheres. Costs are typically a percentage of the sales generated from the affiliate's marketing efforts, between 5 to 30%.
  
  

• Content Marketing: This strategy focuses on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience. While not a direct form of online advertising, it's a powerful tool for building brand awareness and loyalty. Costs can vary greatly depending on the type and quality of content produced. You can also hire marketing staff to produce in-house.