When creating social media advertising campaigns for our clients, the top and often first question we get is how much should be invested. The answer is and should never be the same for anyone. However, the way to an answer is similar. Just like in any situation where you are handing over money, for personal or business benefit, you want to know what you will get in return. To explain this process in the simplest of terms, here are a couple steps we take in determining a budget.
1. Identify Business Goals: Yes, everyone wants to make money. Knowing this is the ultimate goal, think more specific. What is needed to do in terms of social goals in order to grow your company? Are you looking to increase your social following by 30% over one year? Would you like to gain five reviews on your Facebook page per week? Once you've determined this, it's time to take a look at the next step.
2. Choose Your Objectives: Facebook in particular allows us to currently use 11 objectives to optimize social media campaigns. Each one using an algorithm to match your target audience with Facebook users most likely to perform the action you want them to take. Let's look at this a bit closer. If you are wanting to grow your community by 30% over one year, create a Page Likes ad is a smart place to start. If they choose to React to your ad, you get to Invite them or hopefully they perform the Like on their own.
If this is your first time running a Page Likes campaign, start with a budget you are comfortable trying. Then use the results from the campaign to estimate a future budget and results. This method should be used for each type of campaign objective tested. Example:
$100 Budget / 150 (Followers Gained) = $0.66 (cost per Follower)
$300 (Future Budget) / $0.66 (anticipated cost per Follower) = 454 (anticipated new Followers)
We will not pretend that determining an advertising budget is easy. Even after running various campaigns and determining anticipated results, there are many factors always influencing changes in this area. The time of year determines is your cost per result will fluctuate up or down. Think holiday season when everyone is promoting something or an election year. Your audience size, changes in social tools and algorithms all factor into your results.
Continuously analyzing your campaigns, making needed adjustments and understanding what is changing in social media is critical to successful social advertising strategies. Also, remember that as your business goals change adjustments to your social goals will need to be revised. Hopefully, this has given you insight into where to start in determining a social advertising budget. If you feel like you could use more assistance from the experts, contact Fourge Social. Our one-on-one Social Consulting package or Advertising package are options to help you #FourgeAhead into a successful campaign!