What’s a Good Advertising Budget for My Social Media Campaign?
So you’re investing into a social media marketing campaign for the holidays – yay! We’re assuming that you read our recent blog on How to Create a Killer Holiday Marketing Campaign – and if you haven’t, we highly recommend doing so. There are some great step-by-step tactics when creating an effective strategy that cuts through the holiday noise. If your ad campaign is being delivered to the wrong people, or if the messaging and creative isn’t strong, spending advertising dollars could be a poor investment. Don’t launch a holiday campaign without a solid plan and eye-catching, engaging creative!
Back to the money. Many clients ask us how much they should be investing when kicking off a social media marketing campaign for the holidays. There are a few factors that affect your ad spend, so let’s explore those first:
- Your campaign’s objective. If your campaign is focused on generating brand awareness and reaching as many people as possible within a specific market or demographic, the cost per impression, video view or post engagement will be much lower than what it costs to get someone to purchase from you or sign up for a service. Always remember this though: people are on social media to be social, not be sold to. We always recommend creating an objective that generates engagement and brand awareness. The sales will come if you hit the right target audience, with the right message, at the right time.
- Who you’re trying to reach & your creative’s connection to them. It can get more expensive to reach certain audiences if your creative doesn’t connect with them. Understanding your target audience, what they’re looking for, and finding a way to trigger an emotion or reaction through your content will help lower the cost-per-action you’re looking for.
- What your product or service is. The nature of your business will definitely affect your advertising cost. Is your product or service more of a commodity, necessity, or will is it only in demand during certain seasons? Is your product or service’s sales cycle longer due to its high investment, or is it an impulse buy? If your product is more spendy to purchase, you can expect to invest a bit more up front if you’re looking for sales. If your product is less expensive, and a commodity, then you can expect your cost-per-sale to be reasonable.
- Your competitive landscape. The more saturated your market is, the more you can expect to pay. It’s super important to define your target audience as much as possible. This will help lower your cost per result.
- How much data you’ve got. This is probably one of the most important factors of determining the cost and results of your campaign. If you’ve been studying your customers, have an idea of who they are and how they interact with your website and products, have deep insights about your social media audiences, you’ll be able to take this data and apply it to your social media marketing campaign. Bonus: If you’ve already got a pixel placed on your website, you’ll be able to retarget your ads to those who have visited your website within a period of time. This way, you’re targeting your ads to those who have already expressed interest in your business. If you’re a brand new, or lesser known business, it will be a bit more of an investment to build trust and credibility.
- Your website. If you’re an eCommerce business, it’s so important that your website is optimized for your user. In other words, your user should be able to navigate your site easily, find what they’re looking for, and check out within a few clicks. If you need to, freshen up your site before launching an ad campaign. Your ROI will be healthier. You’ll thank us later.
- Your geographic targets. Obviously, if you’re running a national campaign, it will be more expensive than running a local, targeted campaign. The geographical target of your campaign will play an important factor in setting an appropriate budget.
- How many social media channels you’re going to use. Will you be spreading your budget across several social channels or will you be focusing on a single channel?
So how much should you spend? We always recommend, at minimum, a $200 per month budget if you’re looking for brand awareness in a local, targeted area. If you need any help with getting your holiday marketing campaign off the ground, reach out to us! We’d love to help drive the goals you’re looking for with a creative social campaign.