In the modern technology, social media is one of the best tools for your business to thrive in the market and reach a vast audience. Using social media networks as means of advertisement is more economical as compared to the traditional channels. More business has seen a high return on investment (ROI) by implementing and utilizing some of the marketing tools and online techniques, which can be further used to cut down on
social media advertising costs.
While there are lots of people, who are creating social media accounts each day, finding the right marketing tool for your social media has become an important practice for most businesses. The right tools result in increased sales and more opportunities to connect with potential customers. In this article, we are going to look for social media advertisement costs for business and how cutting these costs using social media management tools such as Social Ignite helps to cut down general costs in both short and long-term.
How Social Media Helps to Lower the Cost of Advertisement
Different social media platforms have competed on retaining a large number of customers for business and increase traffic to your store, blogs, and websites for a less cost. Facebook is one of the social channels that has been on the frontline for this. Some of the ways such channels have played in lowering the cost of advertisements include:
1. Immediate Response
Social media presence is a day to day engagement with your audiences, allowing for immediate feedback from your ads, promotions, and sales. This helps the business to evaluate and invest in the campaigns that are working in their favor and see where they can give improvements.
2. Contests and Sales
If you have a service to offer at a reduced price, social media is a great place to get the message out quicker to the large audience, cutting the cost that could have been used in traditional advertisements.
3. Instant Feedback
By the nature of the social media channels, your audience has a media to like, comment, complain and applaud your services. These are some of the things that help you to poll customers about their interests and then to provide the immediate solutions.
How to Lower Your Social Media Advertising Costs for Your Business
More businesses are investing a large part of their ads on social media. These come with different objectives such as increasing their awareness, brand considerations and boosting their conversion rate. As a result, business has laid down strategic that have helped them to lower the cost of their social media advertisements. Such strategies include:
- Use of top performing posts as your business social advertisements
- Monitoring content that has the highest engagement and using it as your social ads
- Creating several versions of your posters with different messages.
However, several factors are affecting the results of your economic and effective advertisement practices. Such factors include the nature of your business, the size of your audience, ads timing and quality of your ads. One of the significant marketing practices that are preferred when it comes to lowering your social media advertisement cost is through the use of social media management tools such as Social Ignite. Such devices have provided both short term and long term solutions for business regarding the reduced cost of the right timing as well as offering quality adverts.
But, How Do I Budget for Social Media Advertising Costs?
Just like in any other business, the major constraining factor to our decisions tends to be our budget. As social media continue spreading its feet day and nights, every company needs to have a good understanding of how much should be set aside for the marketing of brands.
When it comes to marketing through your social platforms, many factors determine the advertising cost.
- Social media management you hire
- Your channel experience level
- The size of your business
- What You Need To Know
Before going into details about the costs of social media advertising, there are fundamental things you need to know. These include;
This is a vital element when it comes to social media advertising costs. They are two common bidding options available on social media:
- Automatic bidding; which allows your social media channel to automatically place a bid for your marketing based on your goals and budget.
- Maximum bidding; which helps you to decide the amount of budget you are willing to invest to achieve your campaign objectives.
Therefore, it is advisable to set your objectives and know your budget before choosing your preferred bidding option.
On the other hand, you also need to create your budget structure. The budget structure will vary across each social media channel. Generally, advertising managers have the option of a daily or lifetime budget.
Daily budgets allow you to set a limit you want to spend each day while a lifetime budget gives you an option to set the total amount you are willing to pay for the duration of your ad campaign.
Some channels may require a minimum daily spend. So when choosing the most you want to pay, be sure to meet the requirement (if specified) of the regular minimum for the specific channel you are are going to use.
Social Media Pricing Terminology
Below is a list of the most common billing/pricing terminologies you need to know:
Cost per like (CPL); this mainly includes the option of paying for every follower gained through the ad campaign or like given to an ad, photo or page.
Cost-per-click (CPC); this billing option requires you pay to for an ad placement when the viewer clicks on the ad.
Cost-per-thousand impressions (CPM); this is where you are billed for every 1,000 impressions of an ad you place.
Cost per action/conversion (CPA); with this option, you are charged when someone completes the action (such as downloading, signing up, or purchasing) you specified when optimizing the ad.
Cost-per-view (CPV); this is the cost you get charged every time someone views your ad.
|Tip:Note that each platform has its terms and conditions for every billing option. Make sure you check how each platform is working with each option.|
Social Media Advertising Cost Breakdown By Platform
So you have set up a budget and chosen a bidding option. This means that you are ready to calculate your the cost of your social media advertising campaign. But before that, it’s important to understand that each platform offers a different budget that varies according to your goals, channel and the type of marketing strategy you choose.
Here is a quick-check guide to help you navigate through the social media advertising cost.
LinkedIn provides the ultimate place for advertisements especially for those targeting other businesses or potential employees. It offers excellent advertising formats that are not interfering to the users and you are required to only pay when your message is delivered.
Bidding options available on LinkedIn
The available bidding options available on LinkedIn include;
- Sponsored Content and Text Ads; this allows you to choose between CPC and CPM. Here, you have an opportunity to set the maximum amount you are willing to pay for the action you have specified such as clicks or impressions.
- Sponsored InMail; here, you are going to be charged based on the cost per send (CPS). This means that you will pay for each message that is delivered. With this option, the rules for CPC and CPM remains the same.
LinkedIn advertising costs
Remember that the actual amount of your LinkedIn advertising budget will be significantly determined by the amount of activity your campaign receives.
For example, you will need to commit to a $2 minimum CPC or CPM bid on text campaigns, while the minimum bid requirement for Sponsored Content varies based on your target audience.
So you have decided to use Facebook as a campaigning tool where you will send your ads to your target customers. All that is remaining is to calculate your budget and set aside the amount you will be spending.
Bidding options available on Facebook
When it comes to advertising costs with Facebook, you have options to choose over four available options which have effects on your advertising cost. These include CPC, CPM, CPA, and CPL.
Facebook advertising costs
One of the critical thing with facebook advertising costs is to set your goals and exercise benchmarks with the industry to have a clue on how your ads are going to perform and how much you will be charged on each click.
Therefore, the average amount needed for your Facebook advertising costs will be;
CPM; needs at least $0.50-$1 a day.
CPL, CPC, CPA & CPV; requires a daily minimum budget of at least $2.50-$5 a day.
Low-frequency events (offer claims or app installments); will charge you a minimum of $20-$40 a day.
How much does advertising with other social media channels costs?
Calculating the cost of other social media channels ads is no different. Your bidding method, budgets, and the goals determine how much you are willing to pay for your ad to be placed on various social media platforms.
Social media is increasingly making work more comfortable, especially in business sectors. Unfortunately, social media channels don’t come with a menu of options and corresponding price tags for your advertising costs, which makes it challenging to answer the question: How much does it cost to advertise on social media platforms? Having this guide will give you the green light of what you need to set aside for your budget.