How much does it cost to advertise?

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Advertising rates vary widely, and estimating an average rate is no small task.  Yet, if you’re like most businesses or nonprofit organizations, you’d like to know how to budget for your marketing plans.

Most media publish rate cards listing their prices for advertising, but they can be almost meaningless, since significant discounts are typically negotiated.

These averages, as reported by eMarketer, should only be a departure point for planning.  The cost of a newspaper display advertisement in Washington, DC, for example can vary widely, depending on the publication and how many geographic areas are targeted, as well as frequency rates and other considerations.

One positive note: most nonprofit organizations can expect to receive a discount.  Which is great…if you can afford to purchase the advertising space in the first place.  Most advertising is mind-blowingly expensive. We’re talking about 10s of thousands of dollars to have a decent-sized display ad in The Washington Post, USA Today, or People Magazine.

There are alternatives, of course.  Using social media and email marketing are two affordable methods with excellent ROI.  Well-targeted direct mail can be effective.  Advertising on Facebook and Craigslist are two other affordable examples where online campaigns can cost less than $100.

Jefferies and Company estimates that broadcast TV had the highest cost-per-thousand (CPM) rate of $10.25, with syndicated TV at $8.77. Magazines, cable TV, newspapers, radio and outdoor advertising follow in amount of expense.

Credit Suisse estimated the average 2009 CPM for online display advertising will be $2.39.  JPMorgan says sponsored search advertising is about $75.33 per CPM, on average.

Online video advertising pricing varies.  Preroll is the most expensive, at $35/CPM, in-stream ads can cost $16.40/CPM, and overlay ads run about $7.40/CPM, on average.