Just over a decade ago, social media wasn’t even a line item for consideration on any business budget. Back then, nineteen-year-old Mark Zuckerberg was still in college checking out the “hot or not” girls on campus. Fast forward to the present day and social media marketing needs to be a part of most business budgets.
In the more recent past, internet budgeting was largely consumed by banner ads and email marketing campaigns, but the overwhelming popularity of social media has caused a shift in online spending. There are many factors to consider when planning a budget, when it comes to marketing and social media, here are three items worthy of consideration…
Set it, But Don’t Forget it
Advertising and marketing budgets vary as much as different business do within a variety of divergent industry types. These figures are dependent upon company size, length of time in business and a number of other factors. A newer business will spend much more on brand development, sometimes 20% or more, when compared to a more seasoned company. Typically, small to mid-sized businesses with less than $5 million in annual net revenue will spend between 10% and 15% in advertising.
As with any line item, these figures are not set in stone and should be reviewed periodically for effectiveness. Minimally, these costs should be examined quarterly, although monthly would be more appropriate and beneficial. If certain campaigns and strategies aren’t working, evaluate what is happening, rethink these expenditures and find solutions for better action plans.
Once you have set a figure for spending, find the best way to allocate those funds to different strategies. For example, the majority of companies, in fact 9 out of every 10 organizations, place the most emphasis on content when it comes to online advertising.
A typical breakdown of social spending can look something like this:
- Facebook = 40%
- LinkedIn = 25%
- Instagram = 25%
- Twitter = 10%
Again, this is just an example and these figures are dependent on a number of different factors as stated previously. As businesses spend much less on more antiquated methods, print ads, radio and television spots, this difference is being put into more effective, digital and social strategies.
With hundreds of different social media networking sites to choose from, which platform(s) to use can be a challenging decision. Obviously a business can’t be present on all the arenas, but minimally, every company should have a Facebook page and engage in at least two or three different networks.
Pew Research Center released statistics that show different demographics for users in these top platforms, Facebook, LinkedIn, Pinterest, Instagram and Twitter.
By better understanding who is using which platform according to their age, gender, and interests, this information can help businesses choose which network would be best for their unique audience.
Last, But in No Way The Least
Don’t forget the many mobile users out there with their omnipresent handheld devices. While all strategies must recognize the ability to be accessible and visible across different screen sizes, from smartphones to tablets, laptops and desktops, these mobile users are sharing coupons, special offers and sales on social media. Moms are sharing over 56% of coupons on social media and 43% of millennials are swapping deals with their mobile devices.
Craft your marketing budget carefully, set appropriate proportions, review your successes and learn from failures. Effective advertising can help your business see more black in the future.