December 12, 2017
How Much Does Social Media Advertising Cost?
The days of businesses using social media as a platform for free advertising are over. If you want to reach an audience on social media, even if that audience already engages with your page, you’ll have to pay. Still, many entrepreneurs claim they’ve tried spending money on social media advertising in the past with little to no return. The obvious response would be to spend more money and you’ll get better results. However, spending more on advertising doesn’t necessarily make you any likelier to see an increase in ROI. In fact, if your first advertising attempt didn’t work, and you spend more money on the same ad, you may just be throwing more money away. So, how much does social media advertising cost?
How much should you spend on social media advertising?
The results of a recent study show that the average business spends approximately 9% of their marketing budget on social media advertising. Many expect that figure to double in the next five years. These figures tell us social media advertising is working and on the rise. However, it doesn’t say exactly how much businesses spend in dollars and cents. Based on these percentages and national revenue averages, a business spends somewhere between $4,000 and $7,000 per month (or $200-$400 a day) on social media ads. These figures don’t include additional expenses critical to the success of an ad such as content creation and management of the analytics. Unfortunately, many small businesses simply can’t afford to spend this amount on social media advertising each month. Although, just because a business can’t spend hundreds of dollars a day doesn’t mean they can’t run a successful social media campaign.
Measuring the success of a social media advertising campaign.
If your business is spending hundreds of dollars a day (or more) on social media advertising there must be some type of ROI. The goals of these types of campaigns are usually either to generate new business leads or sell more products. However, if you’re a smaller business there is still value in using social media advertising to increase your reach and create brand awareness. Brand awareness campaigns, with the goal of increasing social reach, generally cost much less than a campaign to attract leads or sell products, however still produce worthwhile results. There are many companies who have successfully used brand awareness strategies to generate more business.
If you need help determining social media advertising cost and creating a budget for your business contact the Milk Street Marketing today!