Spending on social media ads is an important part of any marketing campaign. With social media, you can target your audience and reach them with an engaging message that drives conversions. Plus, the analytics available to track campaign performance make it easier to adjust your strategy as needed. Spending on these ads also allows businesses to stay competitive in the ever-changing digital landscape. With the right strategy, businesses can leverage social media to reach their target customers and build a successful brand. Ultimately, investing in social media ads is an important step for any business looking to grow. Afterall, on average, 28% of people who use the internet found new products after viewing social media ads. Social media ads have the capacity to help you reach your target customers, build brand awareness, and position yourself as a leader in the industry.
Not only does spending money on social media ads give you access to more potential customers, but it also allows you to target potential customers more accurately. By using the wealth of data available through these platforms, you can tailor your ads to reach the exact people who would be most interested in what you are offering.
What is There to Consider?
When it comes to spending money on social media ads, the amount you spend depends on your budget and goals.
Although, deciding on how much to spend can be a tricky problem. On the one hand, you want to make you that you ad campaigns are effective and that you’re getting a good return on your investment. But on the other hand, you don’t want to overspend and end of blowing your entire marketing budget on social media ads with little to show for it.
So, how can you find a good balance?
The answer to this question significantly depends on several factors and the long-term vision you have for your business. Here are a few general guidelines to help you determine how much to spend on social media ads:
For a Small Marketing Budget:
If you have a small marketing budget, start with a modest amount and scale up as you see results. There’s no need to blow your entire budget on social media ads all at once – test the waters and see what works before increasing your investment. You should always start small and then gradually increase your budget as needed. Allocating just a small portion of your marketing budget for social media ads allows you to test different channels, identify the ones that work best for your business, and then allocate more of your budget to those. This will ensure that you are getting the most value out of your marketing spend and that you’re not wasting money on channels that don’t generate results. Plus, starting small gives you room to experiment with different ad types, audiences, and creatives, so you can figure out what works best for your business.
When Looking to Generate Leads or Boost Sales:
If you’re looking to generate leads or boost sales, aim to spend 10-15% of your overall marketing budget on social media ads. For example, if your marketing budget is $10,000 per month, you should spend $1,000-$1,500 per month on social media ads. By putting aside this amount of money for these specific activities, you can ensure that you’re investing in the right tools and techniques to reach potential customers, engage with them, and convert them into paying customers. This investment will help you reach greater numbers of qualified prospects, increase your sales cycle efficiency, and ultimately lead to more conversions. Investing in the right marketing activities can make all the difference when it comes to generating leads or boosting sales.
When Looking to Increase Your Business’ Brand Awareness:
If increasing your business’ brand awareness is your goal, dedicating 3-5% of your overall marketing budget should be towards social media advertising. So, if your monthly marketing budget is $5,000, you would spend $150-$250 per month on social media ads. When you’re investing in getting the word out about your business, this percentage of your budget gives you enough money to create high-quality content and place it where people are likely to see it. Whether that be through targeted ad campaigns, website content, or social media promotion, you can reach the right audience more effectively. It also ensures that your brand stands out from the competition and increases visibility with potential customers. Investing in brand awareness will help you build trust with potential buyers as they get to know who you are and what values you hold.
When it comes to social media advertising, there’s no one-size-fits-all answer. Spending money on social media ads is important because it gives you access to a large and growing audience. It also allows you to target specific audiences with tailored messages, helping you reach the right people at the right time. For example, as we mentioned in our blog which discussed The Best Types of Facebook Posts For Your Business, by sharing images that are relevant to your business, you are provided with the opportunity to choose ones that are relevant and representative of what your business does, which is more likely to capture the attention of your target audience.
The amount you should spend depends on factors like your overall marketing budget and your advertising goals. However, as a general rule of thumb, 10-15% of your marketing budget is a good starting point for lead generation or sales campaigns, while 3-5% is sufficient for brand awareness initiatives.
What’s The Next Step?
To learn more or to enquire into how we can help you plan your social media ad campaigns, CLICK HERE to claim your 3-step digital marketing Action Plan. By doing so, you will be meeting with a Digital Marketing Specialist to explore your digital marketing footprint and develop a 3-step Action Plan to start getting you results ASAP.
