Social Media marketing is a very cost-effective way to promote your business and it generally requires a much lower budget than traditional advertising.
However, your first stumbling block might be getting a good answer to:
‘How much of my budget do I have to allocate for paid Social Media campaigns?’
This is a difficult question and it doesn’t have a one-size-fits-all answer either. Don’t worry, we can help!
Start by defining your goals for the year – Here are some simple examples to get you started:
- Increasing your audience on your Social Media pages;
- Increasing the traffic to your website;
- Reach more potential clients;
- Getting more interactions on your pages.
Due to the way paid social is set up on platforms like Facebook or Instagram, getting your pages seen by potential clients has a vastly different cost than getting them to go to your website or making a purchase.
Once you have a good idea of what you would like to achieve, you can start investigating how much this is likely to cost you. This is where benchmarking comes in!
Benchmarks can be divided into internal or external:
- Internal benchmarking is when you look at the data from your past campaigns so you can use it as a reference point for the success of future campaigns;
- External benchmarking relies on third-party data and will give you insights into how much your goals have cost similar pages in the past.
External benchmarks for competitors or the industry at large are harder to come by but there are several reliable publishers that do annual or quarterly reports on the evolution of ad costs per industry.
Let’s look at a practical example – External Benchmarks tell us that Facebook in 2020 had an average Cost Per Click (how much it cost you for one person to click on your ad) of $0.39 (£0.29 at current rate) and the average Cost Per Click of your paid campaigns in 2020 on your page was £0.50.
This helps you decide if £50 every other month is enough or if your goals are more on the scale of £1000 every month.
As you delve deeper into the world of paid social, Benchmarking also helps you ensure your ads are optimised and that your budget is being used to its fullest extent.
If you don’t have the time to figure this all out, leave it to us!