Setting a social media budget that works can be a challenging process for any business. Whether you are looking to continue your social media advertising campaign or are starting out with social media marketing for the first time, there are several questions that need to be answered, particularly when it comes to how much to spend and where to invest the money.
How Much to Budget for Social Media Advertising:
While every company will have its own unique strategy for social media advertising, on average, most companies spend around $200 to $350 each day on social media marketing, which works out at between $6,000 and $10,500 each month. When working out how much to budget for your social advertising, you can get the most accurate number by considering your annual revenue. In general, companies tend to spend around 10-13% of their annual revenue on marketing. Around 25% of this is allocated to paid media, which includes social media alongside several other advertising channels.
What to Include in Your Social Media Advertising Budget:
Your social media marketing and advertising budget should take into account the costs of technology, ad spend, services, and talent.
This refers to the several tools that your business can use in order to launch, manage, and optimize social media advertising campaigns. For example, you might invest in analytical platforms, proofreading tools, or photo and video editing software packages. You can find both free and paid tools available to use, such as Canva, a free tool with a paid premium version that you can use to create social media images, or Facebook Ads Compass, which is a free tool that you can use to analyze the performance of your ad campaign.
· Ad Spend:
Your ad spend is the amount that your company spends on advertisements. It refers to the amount that you pay directly to social media platforms such as Facebook, Instagram, or Twitter to deliver your ads. For example, your social advertising budget of $1,000 per month could include a $750 ad spend, $150 on creative materials, and $100 to cover the cost of any digital marketing software that you use.
If your company is working with a digital marketing agency to manage your social media, you will also need to budget for management and service costs. This will depend on the agency that you are working with, along with the number of social media platforms that they manage on your behalf. If you’re in the process of choosing a social media advertising agency, bear in mind that a low budget might not always work in your favor. It’s fairly common for agencies to offer cheap or low-priced social media advertising services that fall short of delivering the results your business needs.
You’ll need to also consider labor costs when you budget for social media advertisement. Whether you employ an in-house team of professionals to design and run your campaign or work with freelancers or influencers, these will all be costs that you’ll need to make sure you have accommodated for in your budget.
Where to Spend Your Social Advertising Budget:
For the most part, companies will use the main social platforms, which are Facebook, Instagram, LinkedIn, Twitter, Pinterest, and YouTube, when it comes to where they spend their social advertising budget. More recently, advertising on Snapchat and TikTok has become crucial for many businesses, as their audience uses these platforms more and more often. While it’s possible for your business to target every social platform out there, it’s important to bear in mind that some might be more useful for others when it comes to getting the results that you need. As a result, your company might benefit from focusing more on a select few platforms, rather than all of them.
Getting the Most From Your Social Advertising Budget:
No matter how much you decide to allocate to your social media advertising budget, there are several things that you can do to make the most of the money you invest.
· Set Goals You Can Track:
Starting a social media advertising strategy without goals is one of the biggest mistakes made by many small business owners. Providing your team with direction and getting the results that you want from your social media marketing efforts will involve setting SMART goals for your social advertising campaign.
· Know Your Target Audience:
Researching your target audience is an important step before you start your social media advertising campaign. Skipping this step means that you will be at risk of investing your money in the wrong platforms and the wrong content that simply isn’t what your audience is looking for. Understanding your audience demographics and finding out more about the type of content that they tend to engage with online can help you allocate your budget wisely.
· Think Outside of the Box:
Social media today is inundated with ads from various different companies. Because of this, when it comes to the advertising that you post on social media, you simply can’t afford to blend into the crowd. Focus on creating ads and posts that catch the attention of your followers and other users, forcing them to stop and check it out further and encourage them to interact with the content.
· Tailor Ads to Platforms:
Businesses that advertise on different social media platforms will often try to save money and time by using the same ads on different platforms, but that doesn’t usually work well since people want different experiences from the social platforms that they use. While this might mean that you use up more of your budget, creating unique ads that are tailored for the different social platforms that you advertise on will help you reach the right members of your target audience, generate more interest and engagement, and help increase your return on investment.
Social media advertising has become a hugely important part of marketing any business today. Whether you’re looking to change your current social media strategy or get started with social advertising for the first time, setting the right budget and allocating it wisely is key to success.