With almost 5 billion people using social media globally, it’s not a surprise that social media marketing has become a necessary part of doing business in our digital era. Platforms like Facebook, Instagram, and Twitter are powerful tools for reaching new customers.
But how much does social media marketing cost? The answer may surprise you. It’s true that many large corporations spend millions of dollars on social media advertising. However, if you’re a small business owner and want to create a solid social marketing campaign, not all hope is lost.
With a bit of creativity and some elbow grease, it’s possible to create a campaign that doesn’t break the bank.
Key Points
- What Is Social Media Marketing?
- Why Is Social Media Marketing Important?
- How Much Do Businesses Spend on Marketing?
- Social Media Management Budget Factors
- How Much Does It Cost to Advertise on Social Media per Month?
- Advertising Costs on Social Media
- How to Maximize Your Social Media Marketing Budget
- Our Takeaway
What Is Social Media Marketing?
Before we dive into the cost of social media marketing, let’s take a step back and define this strategy.
Social media marketing is the process of using social networks like Facebook, Twitter, and Instagram to promote your business or product. This can be done in a number of ways, such as creating engaging content, running ads, or holding contests and giveaways. Social media marketing aims to build brand awareness, drive traffic to your website, and generate leads or sales.
Why Is Social Media Marketing Important?
In a world where billions of people are active on social media, your business can’t afford to ignore this powerful marketing tool. Here’s why social media marketing is so important.
- Social media platforms are a great way to connect with potential and current customers.
- You can use social media to share your brand’s story and build relationships and loyalty with your customer base.
- Platforms like Facebook and Twitter provide valuable data that you can use to understand your target audience and improve your marketing strategy.
- Social media marketing is relatively inexpensive, making it an excellent option for small businesses and startups.
- When done right, social media can be an extremely effective way to drive traffic to your website or blog.
How Much Do Businesses Spend on Marketing?
Before deciding how much to allocate to social media marketing, you should take a step back and calculate a reasonable budget for your overall marketing strategy. Here’s how to do it.
As a general rule of thumb, B2B companies should invest between 2% and 5% of their revenue in marketing strategy. On the other hand, B2C companies are required to spend twice more—often between 5% and 10%. This is because B2C businesses must engage in numerous marketing channels to target different categories.
Social Media Management Budget Factors
When creating a social media marketing budget, it’s crucial to know which factors you should consider.
Set Your Goals and Priorities
First of all, defining your objectives is the key element to starting your social media marketing campaign. What do you want to achieve with your social media marketing? Do you want to increase brand awareness, reach new customers, or drive sales?
Consider Your Target Audience
Whether you are a large corporation or a local business, you should keep in mind who your target audience is. Are you selling your products and services to potential customers based on their hobbies, purchase intentions, or a group of people that share a common interest?
Choose the Best Platform for You
Some platforms, like Facebook and Instagram, offer paid advertising options that allow you to target specific audiences with your ads. Some others, like Twitter and LinkedIn, allow you to boost your posts or sponsored content to reach a wider audience.
Determine Your Available Resources
Last but not least, you should consider how many resources you can spend on your marketing strategy. How much of your earnings should you spend on social media platforms? How much should you allocate to other forms of marketing?
How Much Does It Cost to Advertise on Social Media per Month?
The factors mentioned above play an important role in determining how much your social media marketing cost per month should be. According to Digivizer, it’s recommended to invest a monthly budget that ranges from $300 to $900 in social media advertising. This equals about $10–$30 per day.
Advertising Costs on Social Media
If you want to know exactly how much you will pay for social media marketing ads, that’s hard to tell. In fact, advertising costs constantly fluctuate based on several factors, including the ad algorithms and the chosen social media platforms, to mention a few.
Advertising Costs on Facebook
If you’re looking to boost brand awareness, advertising on Facebook might be the best way to do so.
The cost-per-click (CPC) for Facebook ads across all industries is around $1.72. However, Facebook advertising costs may vary depending on your business sector, location, and target audience.
For example, if you’re an insurance company, your ad can climb up to $3.77 per click.
Advertising Costs on Instagram
Instagram advertising costs highly depend on the bidding model. Generally, Instagram ads may range from $0.20 to $6.70. For instance, advertisers pay about $0.20–$2 for cost-per-click ads. Additionally, cost-per-impression (CPM) advertisers pay around $6.70 for a thousand impressions (not to be confused with clicks).
Advertising Costs on TikTok
Unlike other social media networks, advertising on TikTok might be a cheaper choice for your business.
The cost for a TikTok ad starts at $0.50 per a thousand views and $0.02 per click. However, it’s strictly required to spend a minimum of $500 on TikTok paid campaigns.
Advertising Costs on YouTube
YouTube might be one of the best ways to promote your small business. With an average daily budget of $10, YouTube ad costs range from $0.10 to $0.30 for each view. This means that your small business will be charged every time someone views or engages with your ad.
How to Maximize Your Social Media Marketing Budget
Now that you know how to calculate your social media marketing budget, it’s time to learn how to maximize it. Here are a few tips to help you get the most out of your social media marketing investments.
Do Your Market Research
First of all, it’s essential to understand your target audience and what they’re looking for. That’s why market research is vital if you want to create tailored content that suits your niche.
Monitor Analytics and ROI
The second step to maximizing your budget is monitoring analytics and ROI. You need to track your progress and ensure that you’re getting a good return on investment. Once you fully understand your analytics, you can finally start adjusting your social marketing strategy.
Consider Turning to Social Media Agencies
The third step to maximizing your social media marketing budget is to consider turning to social media agencies. Social media agencies can help you create and implement a successful social media marketing strategy. They can also help you track your progress and ensure that you’re getting a good return on investment.
How Much Does Social Media Marketing Cost: Our Takeaway
In conclusion, the average cost of social media marketing can vary depending on your goals, objectives, and platforms used. However, keep in mind that the key to successful social media marketing is creating quality content that engages your audience.
While investing in social media might be costly for a small business, a little planning and research can go a long way.
How Much Does Social Media Marketing Cost FAQs
How much does it cost to advertise on social media?
Advertising on social media is a great way to reach out to potential customers, but it can also be a bit of a minefield.
The cost of advertising on social media can vary widely, depending on the platform and the type of ad you want to run. For example, Facebook offers a variety of options for businesses, from simple text ads to more complex video ads. On the other hand, LinkedIn is generally geared towards B2B companies and offers different pricing options based on the size of your target audience.
Is social media advertising cost-effective?
Compared to other forms of marketing, social media marketing is arguably the most cost-efficient part of a marketing strategy.
Social media platforms are usually entirely free and easily accessible by everyone. Not to mention, paid ads are relatively less expensive and more efficient than other marketing strategies.
Which social media platform is the cheapest to advertise on?
Social media is a great way to connect with potential customers, but it can drain your marketing budget. So how much does social media marketing cost, and which social media platform is the cheapest to advertise on? The answer may surprise you.
Facebook is one of the most affordable platforms for small businesses. With almost 3 billion monthly active users, it offers a vast potential audience for your ads. Thanks to Facebook’s detailed targeting options, you can make sure that your ads are only seen by the people who are most likely to be interested in your product or service. Best of all, you can get started with a very small budget. So, if you’re looking to stretch your marketing dollars, Facebook should be your first choice.