Spending your money on social media marketing indeed has to be one of your given strategies to scale your business. The challenge is not how much you spend, the challenge here is “the way” you distribute your social marketing budget.
If your company is not getting satisfied Return on Investment (ROI) from social media marketing, it’s about time to reconsider your budget and reset your goals.
Before we dive into defining our budget, let me give you some beneficial stats:
- Average companies spend about 5% – 15% of annual revenue on marketing campaigns
- From those 5% – 15% budget, about 35% – 45% is used for social marketing channels
Social Media Channels
- Facebook– 2.24Billion Users
- YouTube – 1.9 Billion
- Instagram – 1 Billion
- LinkedIn(great for B2B) – 575 Million
- Snapchat – 310 Million
- Twitter – 330 Million
- Pinterest – 250 Million
- Yelp (expensive) – 142 Million
“Understand, more budget doesn’t always equal to more leads or sales. One of the key things to identify, is who is your target audience.”
The Budget You Should Spend On Your Ads
Understand, more budget doesn’t always equal to more leads or sales. One of the key things to identify is who is your target audience. Not everyone is your potential customer. You need to determine your target audience as specific as possible, otherwise, a chunk of your budget is wasted.
Depending your goal, and your social media ad strategy, average business spend from $100 to $500 daily, which is $3k to $15k month. Ideally, your budget for your social media ad campaigns should come straight from your annual revenue. It needs to be about your 10-15% of annual revenue. And 20% of this budget needs to be used for paid media (facebook ads, Google AdWords, youtube ads, etc.)
When your company begins budgeting for social media advertising, use these percentages as a benchmark. Depending on your past return on investment (ROI) from social media, as well as your digital marketing goals, you may invest more or less into social media, versus other advertising channels.
Keeping all this in mind, it has become essential to define your target audience.
Define Your Target Market
Knowing your target audience allows you to delegate your marketing budget and brand message on a specific market that is more likely to bring you sales, leads. You need to keep in mind, targeting a specific audience doesn’t mean that you are excluding other people from your list. Rather, it makes your social ad campaign to be more cost-effective with focus on high ROI.
When defining your target audience, look for common characteristics and interests of your customers. Spy on your competition. Who are they targeting? Who are their current customers? You don’t need “take them away”, in fact, you can’t. Instead, find out what your competitors are missing, and implement that area to your own brand.
When choosing the demographics, consider the following factors:
- Income level
- Education level
- Marital or family status
- Ethnic background
When it comes to their characteristics, consider:
Defining your target audience is pretty challenging, but it’s absolutely essential in order to run successful and cost-efficient social media campaigns. Once you know who they are, it’s much easier to identify which social channels you can use to reach them and what messages to deliver.
“Your task is to identify how your service & products will fit into your target audience lifestyle.”
Spend your social media marketing campaign budget wisely.
To constantly see the growth & success through your social media campaigns, you need to keep tracking your strategies, conduct split tests to identify the campaign that performs the best, and measure your results accordingly.
Research from the Content Marketing Institute found that brands that track their social media tactics are getting higher ROI and scales faster than those who don’t measure and analyze their results.
Defining the ideal budget for your social media marketing and getting high ROI can be a little overwhelming, but once you master it, it’s going to be one of the key factors of your brand growth.
What methods do you use to define your budget for social media marketing? Let’s discuss in the comments👇