Online marketers and business owners who know the value of social media, know that there’s a reason why some businesses shouldn’t spend a ton of money on ads, unless the goals they have for those ads involve something very specific (such as growing an email list or increasing visibility for a special promotion) that they can measure in terms of ROI.
Social media’s number one value, year after year (just check out Social Media Examiner’s 2017 Social Media Marketing Industry Report) is helping businesses to increase visibility. Since visibility doesn’t necessarily mean monetary return, businesses on a limited budget should thoroughly evaluate their ad spending on any of the social media platforms they are using.
If you’re a marketer or business owner, here are some things to keep in mind and help you make a decision on whether or not you should invest in social media advertisement.
Facebook is decreasing organic reach, which means less of the people that follow your Facebook page are seeing your posts.
This seems to be getting worse year after year. In fact in this year’s Social Media Examiner’s 2017 Social Media Marketing Industry Report finds that 95% of marketers either don’t know or have seen a decline in Facebook News Feed exposure over the last 12 months. If you are counting on Facebook for your exposure, then you will want to look into advertisement spending, however keep in mind that spending those dollars doesn’t mean monetary return.
If your biggest objective for using Facebook is to increase sales, you want to keep in mind what type of service and/or product you are selling. How accessible is it to your clients, meaning budget friendly or a big investment, and the time your specific target audience’s buyer journey lasts. This information can help you create more realistic expectations of what you will see following ad spending.
Twitter and/or LinkedIn ad spending also have their considerations.
While LinkedIn is known for successful B2B lead generation and client acquisition, it is quite expensive. If you plan on spending with LinkedIn it’s advisable that you calculate how many clients you want or need to close in order to make up for your investment and see a return. If you are a business with budget that will allow this type of investment then you can test it out and see how it works out for you.
The same thought process goes for Twitter, the only difference being that Twitter is not as expensive as LinkedIn, is also great for B2C, and is one of the social networks that hasn’t reduced organic reach to try and push businesses to spend on ads (Twitter has tweaked their algorithm, but for now, unlike what Facebook is doing, the changes seem to be based on showing Twitter users more of what they’re interacting with and not limiting what they see from the Twitter accounts they choose to follow).
These are only some of the considerations you should keep in mind when you’re considering using social media beyond an organic strategy. If you’re a business that has money to invest then making this decision will be a no brainer; and at the end of the year, you can evaluate how your social media ad spending went. If you’re limited in the budget you have however, then consider the above before investing and ensure your goals can be met by the social media platform you choose to advertise on.
Are you having trouble deciding whether or not to invest in social media ads? What are you exploring to make your decision?
The original article, “Taking a Closer Look at Social Media Ad Spending” by Maria Florio was originally published on Marketing Magnetically