June 10, 2020, 0 Comments
How to define your Social Media Marketing budget
Are you thinking to start with social media marketing for your company? That’s a good decision as digital marketing is booming in the last years. But how much budget do you need in 2020 to start with online Marketing?
Since 2009, the marketing budget remained relatively consistent with a few increases compared to previous years. According to some forecasts, it was indicated that the social media marketing budget will increase this year as new technologies come out and more data are owned by social platforms. This development of digital marketing highly increases your options to find more customers. And as conversion rates and revenue increase, so should your digital marketing budget. Read more about Social Media Marketing here.
Why your company needs to set up an Social Media marketing budget
So you may think why don’t I just advertise whenever I need more customers?! Well, this approach doesn’t work for most businesses. Social Media marketing doesn’t work like that, by just sharing an ad whenever you need more leads and immediately getting more conversions! To move your customer through the sales funnel takes the average business anywhere from 3 months to over year. If you are starting with digital marketing now, there is a considerable gap between the launch of the campaign and generating leads. This is why you need to set up a budget for the year for social media marketing.
What factors determine how much you should spend on
social media marketing
- Compare Company Revenue with Online Marketing budget
The success of social media marketing is calculated by the revenue it generates, but the more revenue you invest in your marketing, the more successful your campaigns will have. By reinvesting a percentage of your revenue into marketing you ensure that your business continues to generate leads and more revenue. According to a survey, the average B2B business allocates 12.3 percent of their revenue to their marketing budget.
- Set a goal for Online Marketing
Setting a concrete goal or goals is a critical initial step in figuring out the social media marketing budget. Without figuring out your goal you’ll end up testing ads until you find out what works. And this is a waste of time and money for your business. Instead, you should decide where you want to see your results by digital marketing. This might be a single result or many objectives. However, you must know what you are trying to achieve. Are you looking for more brand loyalty? Increase revenue? Or just brand awareness? Each goal has a different approach so which one you choose will have a big effect on your social media marketing plan and your budget.
- Analyze your past Experience with Online Marketing
If you have tested campaigns before for your business then this is a step that you should focus on too. You have to see what worked and what has not worked for your business on the past experience with social media marketing. Look closely at what your results have given you. Which ads didn’t work very well and why? Which ads worked well and why? Knowing what worked and what didn’t work for your business and why are vital pieces of the process of defining the budget of digital marketing.
Choose the platform for Social Media marketing
Now that you have defined your budget, your goal, and analyzed your past experience, you have to find out which platform works better for your business. To do this you need to define who your target audience is. For example, if you’re product or service is for an older audience you should advertise on Facebook, on the other hand for a younger audience you should advertise on Instagram, Snapchat, and newer platforms. This article will help you choose the right marketing platform for you.