Is it cheaper to advertise online? Discover real numbers plus easy tips so local businesses can cut ad costs while reaching more buyers.
Online ads usually cost less money for each person you reach than old-school ads like TV, radio, newspaper, or billboards. A Facebook ad can show 1,000 times for about nine dollars, while a local TV spot can cost three or four times more for the same 1,000 views.
After you set a daily budget, you can pause, tweak, and track every click in real time, so wasted spend stays low. Below we break down numbers, compare channels, share tips, and finish with a clear answer.
What “Advertising Online” Means
Online ads are any paid messages that show up on phones, tablets, or computers—search ads, social ads, display banners, video pre-rolls, and more. Because they run on data-driven platforms, you control how much you spend each day and who sees the ad.
“Digital ad platforms let small businesses start for as little as $5 a day and scale only when results look good.” — (Ad Results Media)
Is It Cheaper to Advertise Online? The Cost Picture
Side-by-Side CPM (Cost per 1,000 Impressions)
| Channel | Typical CPM |
|---|---|
| Facebook/Instagram | $8.70 (Madgicx) |
| Google Display | Under $1 average (WordStream) |
| Local TV | $16-$45 (Fit Small Business) |
| Radio | $100 average |
| Billboards (OOH) | $2-$9 (Broadsign) |
| National Newspaper Full Page | $100,000+ flat fee (WebFX) |
Even the priciest digital CPM above is still lower than most traditional options. And unlike a static billboard, you can narrow online ads to a ZIP code, age group, or interest.
Click Costs
- Google Search: average $2-$4 per click for small-business keywords (WordStream)
- Facebook small-budget tests work at $100-$500 per month (Ninjapromo)
Because you pay only when someone clicks or views, your true cost per lead can be far lower than printing flyers or running a TV spot.
Why Traditional Ads Feel Pricier
- Up-Front Fees – A local newspaper may want the full $1,200 for a quarter-page before it prints.
- Limited Targeting – Everyone gets the same message, even people outside your service area.
- Hard-to-track Results – You wait weeks (or months) to see if sales moved.
- Production Costs – TV needs filming; radio needs voice actors; billboards need design and vinyl printing.
Billboards can run $1,000-$35,000 per month depending on traffic counts. (Fit Small Business)
Hidden Costs (Online & Offline)
| Cost Type | Offline Risk | Online Risk |
|---|---|---|
| Creative | Video shoot or print layout fees | DIY designs may hurt performance |
| Waste | Paying for out-of-area viewers | Poor audience targeting can burn budget |
| Time | Waiting weeks to swap a radio script | Daily checks needed to stop bad ads |
Simple fix: use platform rules to pause ads that spend but don’t convert.
Expert Voices
“Broadcast TV still works for brand lift, but data-driven digital gives local shops the control they need over spend and targeting.” — Fit Small Business
“Billboard CPM can be as low as $2, but production and rental terms make it less flexible than a Facebook test campaign.” — Broadsign
These experts agree: flexibility plus lower entry costs help online ads shine for tight budgets.
Quick-Action Checklist
- Set a Daily Cap – Start with $10 and watch the numbers.
- Geo-Target – Show ads only within the city you serve.
- Use One Goal – Clicks to a landing page. Keep it simple.
- Test Two Creatives – See which picture pulls more clicks.
- Track Conversions – Install free tracking pixels.
- Review Weekly – Pause ads with high cost and low results.
How to Make Online Ads Even Cheaper
- Narrow Your Audience – Smaller, sharper targeting drops wasted impressions.
- Use Lookalike Lists – Platforms find people like your best buyers.
- Schedule Smart – Run ads only during store hours.
- Leverage Retargeting – Show ads to website visitors for pennies.
- Combine with Free Channels – Organic social posts and email lower blended cost.
So, Is It Cheaper to Advertise Online?
Yes, generally.
For most local businesses, online ads beat traditional ads on cost per impression, cost per click, and speed of feedback. You can start small, see real numbers in hours, and grow only when the ad pays for itself.
Old-school media still has a place for broad branding, but when every dollar matters, digital wins the price fight.
Want help with your local online advertising for your small business? Give us a buzz.