Companies spend on average between €170 and €295 per day for social media advertising. It is essential to carefully define your budget according to your means, your goals and your objectives!
Here are our tips that will allow you to set a realistic social media advertising budget.
What is your advertising objective?
How much of your budget to spend on social media depends on your advertising objective. You have a choice between several objectives:
- Generate leads
- Increase your fame
- Bring you closer to consumers
- Product promotion
- Increase your sales
Keep in mind that it is difficult to sell products directly on social networks. Still, it’s not impossible! All you need to do is optimize your strategy and your budget to get the optimum cost per conversion. This objective is often the one that requires the most testing, creativity, and expertise.
On the other hand, promoting an app, getting leads through downloadable content and increasing your brand awareness are easier (and less expensive) goals.
It is necessary to define only one objective per ad campaign to be able to optimize it correctly. In fact, social networks use the information they have about Internet users to target them. Thus, some Internet users have a tendency to interact with publications and therefore generate engagement. Others shop online.
So a campaign’s desire to generate both conversions and engagement on posts is not always relevant.
Consider the financial health of your business
In addition to your purpose, the economic reality of your company plays a big role in the advertising budget allocated to social networks. According to a study, B2C companies selling products spend about 21% of their marketing budget on social media ads.
However, some factors come into play:
- Company age: The more mature it is, the smaller its budget, while a young company can devote up to 50% of its marketing budget to social networks. Their goal is to quickly become known to the market.
- Company size and location: The bigger the company, the higher the budget allocated. It is not just a question of economic load here: a market leader has to remain so to ensure its stability.
The most important thing is to give yourself the means to achieve your goals and achieve your ambitions. However, don’t risk the survival of your business.
Analyze the competitive universe on social networks
The quality and quantity of competitors have an impact on the advertising budget. Indeed, bids go up in highly competitive and high-growth areas. You will need to set a high cost per action (clicks, views, impressions, conversions…).
However, before setting your budget, it is essential to analyze your market. What is the competition doing? Facebook provides an advertising library for you to evaluate your competitors’ social media advertising strategies.
Choose a view type for your ads: Image and/or Video?
There are many ad formats on social networks and creative budgets vary depending on the content chosen. Video, for example, is generally more expensive than a still image. However, it is likely to drive a bigger impact and more engagement than a picture.
Respect the desired level of creativity
Along with the visuals, the level of creativity drives up the cost of your ads. Whether it’s video, image or text, the important thing is to create an ad that encourages users to stop and engage with your ad.
Social media algorithms highlight advertisers who produce creative content that generate likes and shares. For example, Facebook allows an ad to perform better in auctions if users like the content.
Set the budget according to the selected social network
Social networks do not provide the same price for all advertising. Offers vary on different platforms, depending on the number and type of users.
On Facebook and Instagram, you can start at €1 per day, while on LinkedIn the daily price is more like €10 because the targeting professionals allow you to target more precisely. In terms of performance, Mark Zuckerberg’s social network offers a cost per click between €0.10 and €0.70, while Twitter costs around €1. LinkedIn is approaching €5.
These numbers are averages and vary by purpose and ad format. Take the time to gather all this information before making a decision!
Internal or external management of your social advertising?
Finally, ask yourself this question: Who will take care of your advertising strategy on social networks? Community manager or an internal social manager? Or maybe a freelancer or a specialized agency?
Calling advertising agencies or specialized agencies often requires a substantial and prohibitive budget. Because in addition to the budget to be spent on advertising, we must also calculate the budget that will be spent to pay the agency.
Using a freelancer who specializes in this area allows you to optimize your campaigns and your overall ROI more quickly. In fact, a freelancer often offers more affordable prices and more accountability. This obviously requires an additional cost rather than advertising itself, but this surplus can quickly become profitable due to the better return on investment.