Advertising is a promotional activity which aims to influence the behaviour of targeted consumers by persuading them to buy, hire or use your products or services. For businesses, the ultimate goal of advertising is to attract more customers and increase sales.
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Send SMS ad campaigns on popular platforms like Google and Apple messaging services.
Create outdoor advertising to promote your business including print and digital billboards, banners, posters and transit advertising.
Advertise in magazines and other printed publications such as catalogues, brochures and newsletters.
Advertise your business in online and offline directories and local listings.
Create TV ads and advertise on appropriate channels on free-to-air, digital or online TVs.
Create radio campaigns and advertise on suitable radio stations to reach your target audience.
Advertise in handouts, letters, flyers and other printed materials distributed door to door.
Create one-off of regular ad campaigns for search engines, social media and display ads.
Create newspaper ads and place them in national and local papers according to your target audience.
Create ads for mobile apps, videos and mobile banner ads.
Roughly how much does it cost to hire an advertising agency for a small business in Australia?
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Justin Gil, Social Media Manager at The Foodie Basket
How much does online advertising cost in Australia?
As an Australian business owner, creating an online advertising budget can prove to be quite tricky at the start. There are many guides online, but they're usually in American currency, not Australian. This could lead to over or under budgeting when it comes to advertising spend.
According to WordStream, Australia's average cost per click is 5% less than the U.S average.
So, how much does online advertising cost in Australia? Well, that depends; which platform are you talking about?
Online advertising costs vary for a variety of reason:
What platform are you using?
What is their pricing model?
What is your maximum bid?
How good is the quality of your ad?
How high is your website's site authority?
What are your campaign objectives?
What industry are you in?
These factors will all significantly affect and vary the cost of your advertising. Before we get into specifics, let's talk averages (remember all figures are in Australian Dollars):
Google Advertising Cost
The average cost per click for Google AdWords in Australia is $2.83 on the search network and $0.70 on the display network.
The average cost per action (CPA) on a Google advertising search campaign is $72.45.
The most competitive keywords on Google and Bing cost over $60 per click.
Overall, the average Australian small business consistently using Google spends between $8,000 and $12,000 per month on their online advertising campaigns.
Facebook and Instagram Advertising Cost
Australia is the most expensive country for Facebook advertising.
Facebook advertising in Australia is nearly 4x's the global average, according to Socialbakers.
The average CPM (cost per a thousand impressions or millie) on Facebook Ads is around $6.
The average cost per click for Facebook in Australia is $2.10, and the average price per action on Facebook is
.The average cost per action on Facebook Ads is $22.80.
The typical CPM for an Instagram ad is around $6, but rapidly growing with its popularity.
Prosper Taruvinga, Digital Marketing Expert at Livelong Digital Pty Ltd
It's really am matter of your marketing budget. What are you hoping to achieve and what are you willing to invest to get there.
Shai Luft at Bench Media Pty Ltd
It's difficult to answer without knowing details on the business or brand and their target audience. The main issue with print and local papers is that it is very difficult to measure and there is a fairly large outlay (usually $1000+ for one ad placement). For online ads you can test creative and make changes quickly to improve your response as well as much more accurate targeting specific audiences who are in market looking to buy a product or service like yours. The cost is usually per ad view or click so you can build up gradually as your results improve. I think its a better approach than putting all your money on an ad that may or may not bring anything.
Lisa Ormenyessy, Founder at OMGhee
I totally concur Steve, another number you will want to work out is the life time value of a client against the acquisition cost of the client.
For example - if you spent $100's of dollars and only picked up one client whose first purchase with you was only $50 then on the face of it it would look like a poor ROI.
However - If over the next 3 years that customer ends up spending $20,000 with you (as $50 was your entry level product and you continue to up sell throughout your marketing/sales funnel) then a couple of hundred dollars spend for a $20K client is good.
How much do small businesses usually spend on advertising costs per month?
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Hatty Bell, Executive Assistant at Country Road Group
Would be great to hear your thoughts @Steve Habazin
Steve Osborne, director at Stephen Roger Osborne
Thanks to all who've posted comments so far. Here's a bit more detail on how this might work.
The model is intended to attract concepts only, not execution ie. production would not be included in your submission. This is not a 99Designs model.
There are two levels of involvement – open briefs and closed briefs. Open (or public) briefs are accessible by all and any group member can respond. Payment would vary depending on the brief and the client. Closed briefs are by invitation only. Only those who have proven themselves on public briefs are eligible. Everyone working on a closed brief would be paid for their contribution.
The entire model is managed by a team of experienced marketing heads. So the briefs would be well-written. This team makes the final decision as to which responses are shown to the client, so yes, you would be competing against other members within the co-operative on open briefs. However, the responses are selected on the simple basis of "best idea wins." The management team controls client communication and production.
A submission would have 3 x mandatory and one optional component. 1. a strong, memorable, two sentence headline or title that clearly conveys the idea. 2. a concise, one paragraph description covering the Who, What, When, Where of the idea. 3. the How ie. an insight into how the concept would be realised. This might include suggestions for production. 4. (optional) some sort of reference image, sketch, drawing, storyboard – whatever you felt might aid the idea.
The model does not preclude you from working with a partner(s), or from submitting multiple responses. The model is intended to induce the best ideas with the least amount of physical labour.
The idea started because we all have a massive file of rejected, unsuited or self-censored concepts. Either the client didn't appreciate their beauty/profundity/cleverness, or didn't have the budget! Whatever the reason, they they never saw the light of presentation. We wondered, what if there was a way to get some of those brilliant, but unused, ideas into the hands of businesses that needed them? Without necessarily revealing where they came from/who did them. Clients get to go outside their formal agency setups and draw from a larger pool of top talent (some of whom might want to stay anonymous because of conflict of interest issues).
So the co-operative idea was born.
Shai Luft at Bench Media Pty Ltd
Hi, As everyone mentioned there is a minimum if you go direct with Spotify and it is a great option. If you do feel you need some help and want to also explore other audio options such as Nova, SCA or ARN which have lots of digital content, podcasts etc as well as Spotify or look at a more holistic Audio advertising strategy, I'd be happy to help.
William Siebler, CEO at The Marketing Mentor
It varies enormously. CPM is realy the wrong metric to use. The focus should be cost per lead and cost to get a client.
Hatty Bell , Executive Assistant at Country Road Group
Thanks for the insight @William Siebler . Why should CPM not be measured?
William Siebler , CEO at The Marketing Mentor
The best measures are cost per lead and cost per sale. Then compar those with the lifetime value of each client to know how profitable your ads are.
hi, How much would be budget to advertise our web-platform http://homez.design the site is market place where people can find required service contractors and prod suppliers to theirs make home better can u give 3 scenarios min, aver, max and what kind of audience we can reach with ur approach & strategy i would appreciate ur helpCheers, Denisc, CEO+64212355050
Yee Trinh , Cofounder at SavvySME
Hi @Denis Homez . If you're looking to connect with media buyers who can help you advertise Homez Design, please submit a job on SavvySME and we'll connect you with quotes from local media buyers.
I have tried this over weenend workshops and it has works just fine with google adwords. I have never tried it with Facebook or LinkedIn Ads, reason being they are costly. We usually gathered email addresses and then had a "Buy now" or "Pay now" button, amount of people clicking this button gives you some clarity. Also gathering phone numbers and taking permission to call them has worked pretty nicely for us. We did all this as we did not want to put money for LinkedIn ads :-) We also tweeted big wigs and ask them to retweet out landing pages, this has also producted really nice results..
John Eustace, Principal / Communications and Media Strategist at Bells and Whistles Marketing Pty Ltd
Some sound advice here already Denis. The “How much” question you ask is being applied to an expense item ‘advertising, when it can only have any context when you first apply it to the revenue side or your business model. ‘How much’ will your enterprise need to generate as turnover and profit. Only when this has a quantified value can you define a reasonable and effective budget to achieve your projected return.
There are dozens if services similar to your brief description popping up every month so it is a crowded market and effective differentiation is paramount if you are to heard above the increasing promotional noise.
I have visited your website and whilst interesting looking the navigation is far too confusing for most casual browsers To extend your reach and appeal there is some platform restructuring I would recommend prior to considering any advertising expenditure.
Jacquie Baker, Co-founder at Sureshot
I sincerely hope it isn't the future. I have used crowdsourcing for small jobs, and have been really happy with most of the outcomes.
But I feel you loose the intimacy of a relationship. One of the joys of being in business, is getting to know your suppliers, and them getting to know you. The feeling that you are working together to build/create something wonderful is one of most important aspects for me to be in business for myself. Having people lower their prices, and churn out work, doesn't create an environment, where talent can flourish....and I do not think you can get truly clever, well considered results.
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It’s safe to say that advertising is vital for the success of every business. Some businesses rely more heavily on advertising than others, but in order to get your business out there and generate profit, your audience needs to know who you are, what services or products you provide and why they should do business with you instead of your competitors.
That’s where advertising comes in.
Advertising is a promotional activity which aims to influence the behaviour of targeted consumers by persuading them to buy, hire or use your products or services. For businesses, the ultimate goal of advertising is to attract more customers and increase sales. By creating advertisements with tailored messages, businesses can target niche or large audiences to attract new customers.
Advertising is one of the oldest and if not most ancient forms of business. As soon as the trade industry got into full swing and multiple people started selling the same thing, so did the need to stand out from the pack.
Since the birth of the Internet and consumers’ transition to the online world, advertising has been categorised into two areas:
Traditional advertising involves TV, radio and print advertisements which typically target an audience directly such as an ad in a local newspaper or a news time commercial. Traditional advertising is generally more expensive than digital advertising, but it can provide a great return on investment (ROI) and is still popular with many businesses today.
Digital advertising is any type of advertisement which is displayed online or on a digital device, such as social media ads or pay per click advertising (PPC). Digital advertising tends to be cheaper and it’s much easier to measure the performance of ads.
Advertising helps small businesses in many ways, but the underlying point of all of these benefits is business growth. Whether it's attracting new customers, sales, brand awareness, advertising accelerates your customer base, size of the business and revenue.
There are many types of advertising that are used to promote small businesses. We’ve broken these down to keep things simple.
Traditional (offline) advertising methods
Some examples of traditional advertising methods include:
Digital (online) advertising methods
There are many types of digital advertising methods, including:
Although the field of advertising is vast and multi-faceted, all advertising methods are underpinned by three key objectives.
There are three key objectives of advertising to persuade consumers to purchase your good and services.
Objective #1: Inform
The inform phase is where you create awareness of your brand, products and services so that consumers know you exist. A seed is planted to let people know your business has a solution to peoples’ wants and needs.
Objective #2: Persuade
In the persuade phase, you convince your audience why your product or service offering is the best. It works at changing people’s perceptions and habits to influence the decision to try a new brand, switch to a brand they have trusted for some time or stay loyal to an existing brand.
Objective #3: Remind
The remind phase is all about nurturing consumers to remind them why they need a product or service and what benefits they will gain once they purchase it again.
So that’s the objectives covered, but the question is… how do advertisers do it?
Some of the most common advertising strategies and techniques include:
If you're feeling inspired to create a new advertising campaign or want to explore new advertising channels, see our Q&A section below or get an answer from an advertising expert.
You can also post a project, and we will introduce you to the best matching local advertising agency who can help.
While there are several crossovers, the difference between an advertising agency and a marketing agency is in their service offerings.
Advertising is a subset of marketing and advertising agencies specialise in creative communication programs such as ad campaigns. Marketing agencies, on the other hand, offer a much broader and consultative approach to develop strategies that align with the long term business objectives and goals.
Whether digital or traditional advertising is better will depend on which medium will leave the biggest impression on the largest set of your target audience. Generally, your advertising activities should include a mixture of both traditional and digital channels to get the best ROI. Always hire an advertising agency who can tailor solutions to your business.