Upgrade to 2nd level VPS or use CDN? Exceeding bandwidth due to traffic increase

Hello. I run an entertainment news site that averages 200k visitors a month and it runs on a VPS hosting which allots me 250GB bandwidth, 768MB Burstable Ram, and 384MB Guaranteed Ram.

Because of the nature of the site, it has many images and even though the images are all optimized for the web, the site still goes through 200GB/month of bandwidth easy.

This month I’m seeing significant increase in traffic and I’m already at the halfway point to the 250GB bandwidth limit, even though there’s still 17 days more to go until the bandwidth reset. So I have a choice to make.
The next level VPS allots my site 350GB bandwidth, 1048MB Burstable Ram, and 512MB Guaranteed Ram. Should I upgrade to the next level VPS or should I decrease the bandwidth usage from my hosting server by using CDN? My site gets traffic from all over the world, so I assume CDN could make a big difference in site loading time as well.

I would like to get some advice from the more experienced webmasters, I’ve only been doing this for couple of years and I do not have much experience. Thanks for your time.
Let me add one more thing, It would be nice to do both for the site, but if you had to choose one option, tell me what you would go with.

Enable hotlink protection for the images on your site if it is not enabled already, as it will considerably lower down
bandwidth usage.

Few tips to reduce bandwidth usage

minimize the size of images
optimize inefficient scripts
Use caching
Use dynamic scripts

Thanks storminternet. This is why you never stop learning, I never thought of hotlink protection not even once. But let me ask you, what happens to say articles that I post on Facebook? Would Facebook still be able to display the thumbnail images of my articles even if I hotlink protect the images? I always write an article and post a snippet to my facebook page you see and I need the thumbnail to appear. Thanks.

I prefer to use CDN than upgrading VPS. If your sites are still working well in current VPS, upgrading is wasting CPU, RAM, etc. Meanwhile you know already, CDN can bring your visitors better site performance.

Thanks for your answer gate2vn, I thought I wasn’t gonna get any replies to this. I was leaning towards CDN too and your answer sort of seals it. I read up on hotlink protection, but I think it will eventually be more trouble than good.

Also to cut down on bandwidth usage, have you considered looking at the statistics? Who and where is your bandwidth going? If you see an IP address that frequently shows up with high usage, you can figure out who it is and what their purpose is.

The main consideration against using a CDN might be cost. E.g on a CDN such as Amazon you’ll be paying 10 cents+ per gigabyte out, where as you can get a dedicated server that would work out at 1c per gigabyte (albeit without the redundancy and geographical distribution benefits)

And what about Dedicated server hosting ??

Isn’t a good idea as per this kind of requirement ??

Dedicated server is a good option if you are using more than VPS resources. In this case, the OP’s website is still working well in current VPS. So, as I stated above, upgrading to bigger VPS or a full dedicated server will be a waste.