Social media marketing is the practice of online advertising and organic content posts placed on social networking channels. Paid Social Media Marketing is similar to paid search, except that advertisers, not users, take the initiative – advertisers must “search” for users, not the other way around.
Social media advertising is an effective way for businesses of all sizes to reach prospects and customers. Your customers are already interacting with brands on social media. If you’re not engaging directly with your audience through social platforms like Facebook, Twitter, Instagram, LinkedIn, or Pinterest, you’re missing out on opportunities to interact with your potential customers. Good social media marketing can bring remarkable success to your business by creating loyal brand advocates and even driving and generating leads and sales.
The number of companies and entrepreneurs implementing a social media marketing strategy is increasing every year. However, there are still some companies that resist this. This is more than likely because these companies don’t understand the benefits of social media marketing, in Mallorca or anywhere else!
Some of the top reasons to invest in social media advertising include:
- Price. The cost of social media advertising is relatively low compared to other advertising methods. You can also set your budget as low or as high as you want.
- Range. You can reach a lot of people with social media advertising. This also means that you can reach a large number of potential customers, which increases your conversion rate.
- Segmentation. Social Media advertising gives you access to very specific target groups compared to other media. This means that if you are selling a very specific product or service, you can advertise to specific users with pre-determined characteristics, such as gender, age, socioeconomic situation, language, use of a particular website, or interests and hobbies. These are just a few of the variables that will allow you to accurately identify your target audience. You can then combine these features to become even more specific.
- Brand visibility. Let’s be real, the whole world is on social media, daily, multiple times When a company uses social media to advertise, brand awareness and overall market visibility are greatly increased.
- User experience and loyalty. Social media ads allow you to connect with your followers and potential customers in a new medium. By creating new content or targeted discounts and offers, you can create a positive customer experience on an entirely new platform. In addition, a company can create a dedicated customer service account, improving the brand’s public image and making itself more accessible to its customers and potential customers who have questions.
- Brand recognition. Thanks to the large number of users on social media, advertising on social media is a great way to familiarize users with your brand and your offerings. This can be especially useful for e-commerce, as they can use product catalog advertising to introduce their products to social media users.
- Connectivity. This type of tool allows a company to create a channel specifically for customer interaction so that customers feel like they are connected to a company. In this way, social ads can help a company strengthen the bond between customers and/or create new connections within the target audience.
- Increase sales, sign-ups and/or leads. Whether in the form of sales, website registrations, and/or leads, social ads are another ideal way to drive conversions. When a user finds what they are looking for, there is a high probability that an action will be taken.
- Gain knowledge about the target audience. Social media allows us to segment ads as much as possible so that they are explicitly seen by the desired (potential) customers. The same feature also allows us to establish new, untested target groups (which could represent interesting segments for the company in the future).
The cost of social media marketing varies depending on the platform and tactics. Regardless of what you choose, the cost is only worth it if you have a strategy in place.
How much does organic posting cost?
Your social media marketing budget should be split between organic and paid posting. Paid social media ads can help drive immediate action. Their organic contributions will help lay the foundation for a returning audience and continued brand awareness.
Within your organic posting budget, factor in the cost of developing social media posts and managing your strategy across multiple channels.
Creative direction and copywriting
Social media posts always include creative and copy. Hiring the best designers and copywriters will help you lay the foundation for an engaging social media strategy.
You can get by without professional graphics with a free service like Canva, but quality over quantity is always best in social media. Team members who can set your creative brand and tone will help you cut through the competition online.
Social media management
Social media management is the other long-term cost associated with social media marketing. Management includes content calendars, scheduling, reviewing analytics and setting strategy per platform.
Without social media management, you may not be able to stick to a strategy. Random postings can lead to wasting money in the long run. A manager will keep you in the loop to make sure your social media is in line with overall business goals. An alternative to paying a hefty salary to a social media manager is to hire an agency that focuses on digital marketing. This option allows you to focus on what you do best while leaving the marketing to experts who live in the digital world.
How much does social media advertising cost?
Social media advertising is another cost of social media marketing. Social media pricing varies greatly from platform to platform, which is why it’s so important to set a strategy before you start creating budgets.
Depending on your industry, certain platforms work better than others in terms of awareness, lead generation, and conversion. For example, B2B companies tend to have better results when advertising on LinkedIn compared to Instagram or Twitter.
Facebook ads cost about €0.25 per 1,000 people they reach. However, Facebook allows you to choose from several different campaign goals that can impact your budget.
For example, if your goal is more traffic, you pay per click, while for lead generation you can pay for each form submitted.
Overall, Facebook is about mid-range in terms of how much you’ll spend per day. Facebook is one of the best options for social media advertising because of its advanced targeting capabilities. No matter who your audience is, you can find them on Facebook.
Facebook owns Instagram and therefore offers the same structure for ad setup and targeting. Instagram is much more visual than Facebook, so it’s better suited for B2C businesses and entertainment-based posts.
Instagram also tends to be younger than Facebook, which can play a role in developing personas in your social media strategy.
On Instagram, there are fewer types of ad formats to choose from, but that means they’re usually less disruptive than Facebook ads. If you have accurate targeting, you can expect 10x more engagement than Facebook at a similar cost.
LinkedIn is one of the most expensive advertising platforms, but it offers the best targeting for B2B audiences. LinkedIn structures its campaigns similarly to Facebook and Instagram, where you can choose a total, daily, or per-bid budget. You can also choose targets for clicks, impressions or lead.
With LinkedIn, you can expect to spend nearly €6 per 1,000 impressions, which is about 24% higher than Facebook’s cost.
Twitter is a more limited advertising platform compared to Facebook, Instagram and LinkedIn. You can still target users based on demographics and some user behavior, but Twitter doesn’t collect as much affinity data as others.
When using Twitter, you can expect to pay €0.50-€4 per engagement on promoted tweets and promoted accounts.
Because Google owns YouTube, it offers enhanced targeting tied to online user behavior. YouTube offers one of the best platforms for building brand awareness because it has so many users from a variety of demographics.
YouTube is one of the more expensive advertising platforms. It is significantly more expensive than a standard search network campaign via Google Ads.
For YouTube, you can expect to pay €2,000 per 100,000 views or €20 per 1,000 views. The cost comparison is about 80% more expensive than Facebook.
Investing in a social media strategy
The cost of social media is meaningless if you haven’t already invested in a social media strategy. Without a strategy, you have no framework to measure your success.
The most cost-effective way to develop a strategy and manage your social media platforms would be to hire a marketing agency. Agencies typically charge for their services as a monthly retainer, which means you can count on a single price per month for everything from strategy, management, analytics reports and more. The average industry fee for a monthly retainer starts at €1,000 and typically does not go above €5,000.
Developing a strategy means evaluating each platform to determine which ones make sense for your audience. You don’t need to be present on every single platform. Working with a marketing agency can help you save time and resources so you can focus on the platforms that generate the most leads and revenue.
Generating ROI from social media marketing costs
Some of the costs associated with social media marketing are high, especially for small businesses. However, when used properly, social media can be a successful source of revenue for your business.
Contact tikitaka today to start building your social media strategy. Our social media advertising includes audience targeting, social listening, paid advertising and more.