Social media advertising has revolutionised the way businesses connect with their target audiences, enabling precise targeting, extensive reach, and measurable results. However, one crucial aspect of running successful social media ad campaigns is determining the right budget allocation. How much should you invest in your social media ad campaigns? How can you optimise your ad spend to maximise ROI?
In this insightful blog post, we delve into the world of social media ad budgets, exploring the key considerations and strategies that will help you make informed decisions. We’ll delve into the factors that influence your budget determination, such as your campaign objectives, target audience, and industry benchmarks. Additionally, we’ll provide you with practical tips on how to optimise your social media ad spend and stretch your budget effectively.
By now you probably are aware of the fact that social media marketing, while powerful, is not free.
With the growth of social networks over the past few years it has become apparent that businesses need to have a social media ad budget in order to succeed
However, this is where it gets hazy for most social marketers. They are not sure how much they need or where to focus their ad spends. That is why we want to take a few minutes to discuss some of the best places and strategies for your social media ad budget.
Whether you’re a small business owner with a limited budget or a marketing professional looking to enhance your ad performance, this post will empower you to make strategic decisions when it comes to allocating your social media ad budgets. So, join us as we unlock the secrets to effective budgeting for social media advertising success.
Breaking Down Social Media Ad Budgets Across Social Networks
Having the social media ad budget is very much dependent upon where you advertise on social media. That is why we broke down social media ad budgets based on the four largest social networks.
The first and most obvious choice to start advertising on social networks is Facebook. With 1.6 billion users they are the 900-pound gorilla in the social networking space.
Generally, companies use Facebook ads for three specific reasons.
First is to increase the number of fans on their Facebook page. While more fans does not necessarily mean that you will get more business, many companies like to grow their fan pages in order to attract more business.
Take Vast Interiors – Australia and New Zealand’s largest recycled furniture retailer – recent Facebook ad campaign. http://www.afr.com/leadership/what-500-will-buy-you-in-social-media-advertising-20140124-jy87q
They spent approximately 21 cents per like to garner more than 2,300 fans on Facebook.
This compares to spending $2.50 for traditional customers.
Second is driving traffic to your website. Facebook can often do very well for clients looking to drive traffic to a targeted page on their website.
Keep in mind that driving traffic to your website requires you to have a similar look on your Facebook page and website. If this is not the case, many consumers will bounce off your website because they are confused.
Third, engage with your audience. Boosted posts completely changed how Facebook’s advertising platform worked. It gave people the chance to engage with your brand.
They can dramatically increase the number of likes, shares, and comments fans make on your posts. While not every post needs to be boosted, you can do it on a regular basis to increase the attention to your fan page.
In the long term this can help drive more traffic to your business.
Supercharge your tweets with Twitter ads. For a long time now, Twitter has been a tremendous source of traffic for website admins.
Now a business can enhance their results with Twitter ads. Twitter charges advertisers based on a CPE scale. That means you pay when a person clicks, retweets, replies, or favorites your Tweet.
The average cost is between $.75 to $2.50 per click. Compare that to the average $3-5 per click on Google and you have a bargain.
Plus, every time a tweet is retweeted it gives that many more chances for the tweets to be shared by other users and increase your reach.
While you can pay for followers on Twitter, you would be better served focusing on your content. The more you focus on ads for your content, the more you can grow your Twitter following anyways. Plus, you get retweets and such for the effort.
Since Facebook owns Instagram, the great thing about advertising on Facebook is that you can also create a secondary campaign directly from the Facebook Ad Manager.
Being able to create a coordinated campaign between the social networks can do much to improve your results.
Furthermore, Instagram is great for businesses looking to connect with an extremely visual and mobile audience. That is a large part of the reason why Facebook purchased the social network.
If you work in a B2B industry, then you might want to consider LinkedIn ads. While LinkedIn ads average around $6 per click, they are a worthwhile investment for companies with larger offerings.
However, this is a perfect example of understanding how your budget works with your product’s lifetime value.
For example, if you have a service with customers that generate tens of thousands of dollars in revenue over the years then you might want to consider spending $500 for 80 clicks every month.
However, a retailer whose average sale is between $50-100 might struggle using the platform.
Social media ads can bring in tremendous results when you target your advertising correctly. To do that you need to know which social network will provide you with the greatest bang for your buck.
If you need help identifying the best opportunities for your social media ad budget, then let our social media agency in Melbourne help
you. Set up an appointment with our dedicated team for a free initial consultation on how to improve your social media ad budget by calling us at: 1300 360 037.