As the first half of 2020 comes to an end, the economy is wandering on uncertain terrain. Now, more than ever, social media marketing budgets need to be calibrated to perfection. Every dime counts and we’re here to help you count just how much to invest in your social media marketing budget to get back what you put in and more. Because although the state of economic affairs is uncertain, the safest way to make it back to safety is by investing in your online efforts.
In establishing your social media marketing budget for the second half of 2020, you need to tune in to the current context. Users’ behaviours have changed and the number of people who turn to online purchases has increased. On the other hand, influencers are creating more content from their homes and have the time to build better bridges with their followers. Everybody needs to adapt and adjust expectations, goals and, since we’re talking about it, budgets. So, just how much should you be spending on social media and what campaigns should you be focusing on?
What’s Happening Right Now With Social Media Marketing Budgets?
As the COVID pandemic has resulted in isolation periods across the globe, social media marketing has become the prime promotional lifeline for businesses. Even as restrictions ease and people are able to go out and about, most are still reluctant to travelling large distances and are holding onto the online buying behaviour they established during isolation. Afterall, it’s convenient.
According to an interview in PR Daily with P.K. Kannan, Ph.D., the Dean’s Chair in marketing science in the online MBA program at the University of Maryland, traffic on Facebook, Instagram and Twitter has increased by an average of 9% – 15%. This means social media managers have a great opportunity to leverage this new audience. The downside, however, is that most businesses have decided to cut marketing costs. In fact, the opposite should happen: social media marketing budgets should stay the same or even increase. The reason for this is simple: rates on social media have decreased due to less competition, but daily user traffic has spiked. It’s an opportunity to grab!
How to Shift your Social Media Marketing Budget Strategy?
As countless research studies show, businesses have increased their marketing budgets over the past decade, reaching their highest levels to date. The Gartner CMO Spend Survey predicted that 61% of businesses will increase their budgets in 2020, especially those allotted for social media. Of course, a pandemic wasn’t included among the variables. Usually, B2C companies used to spend anywhere from 10 – 15% on their revenue on marketing, while B2B companies hovered around 10%. Out of this sum, an average of 45% usually goes to digital marketing and out of this, an average of 35% goes towards social media marketing budgets specifically.
As of March 2020, social media managers have encouraged businesses to shift their social media marketing strategies for the short-term and, subsequently, their budgets. Guerilla marketing and outdoor advertising will do little to increase revenues during a pandemic, but social media will target just the right people. Considering the case and taking into account the averages of marketing budgets up to date, experts encourage companies to redirect their offline marketing budgets to social media. Or at least a part of it. Cutting the overall marketing budget should not affect the social media marketing spendings, that is if companies want a chance at making it.
What Social Media Marketing Budget to Set Aside for Paid Ads?
Paid ads are probably the safest bet you could take with social media marketing budgets. Of course, it’s extremely important to get your target right. Paid ads allow for incredibly specific audience targeting, so you’ll be sure your ads reach the right people. When setting the budget for your campaigns, you need to make sure you’re not overdoing it. Spending too much will result in target saturation and will only increase costs per display, tampering with your overall results.
Start with an average of 50% of your total social media marketing budget. Good social media managers know how to distribute sums among different types of media ads (image, video, stories, boosted posts) to tick goals. Keep in mind that there’s no one-size-fits-all budget. Revenues vary widely across industries and business size also matters. Thus, don’t get stuck on exact numbers. Follow the percentage rule and you should get to your desired results.
How Much to Invest in Influencer Marketing?
Influencer marketing is one area you shouldn’t ignore when thinking about your social media marketing budget. If you’re a bit skeptical, your concerns are probably related to the black lash against some faux influencers. However, you shouldn’t be put down by a few bad apples, because the benefits are real. Whether you’re thinking about influencer campaigns or co-branded ones, setting aside a consistent budget will result in a nice ROI. But just how much?
Depending on the size of an influencer’s follower count, rates vary. Micro-influencers are usually described as accounts having between 1000 and 100000 followers, while macro-influencers go from there on up. Costs also differ according to the social media platform, with Facebook usually costing a bit more. As a generic unwritten rule, expect to pay:
$10 – $25 per post for an influencer with 1000 followers
$100 – $250 per post for an influencer with 10000 followers
$1000 – $2500 per post for an influencer with 100000 followers
From $5000 and more per post for an influencer with millions of followers
Of course, these costs are only for orientation. Each influencer has different fees depending on their geographical location, you campaign, business size and many other variables. Influencers have begun to be particularly prolific during this pandemic period. However, since demand has somewhat tilted, they might be just more open to negociations.
Don’t forget to track and optimize!
A good thing to remember, in times of pandemic economical unease and during great times as well, is that no social media marketing budget should be set in stone. Sure, you need to set a specific amount for this particular endeavour. But give yourself the freedom to shift budgets from one marketing area to the other and tweak sums as necessary.
With this in mind, you can now make the necessary short-term adjustments to your social media marketing budget. We’re curious to hear how will this change so tell us in the comments bellow.
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