Business Basics: How To Plan And Allocate Your Social Media Budget
Thanks to technological advancements, social media has become one of the most popular marketing channels in recent years. According to Statista, social media channels currently boast about 4.6 billion users annually, a number that’s likely to rise to 5.9 billion in the next five years. Almost every business looking to build its online presence turns to social media as its number one priority.
Why do companies prioritize social media over other online marketing channels? For one, there’s easy access to a huge market base. In fact, a considerable percentage of users today are no longer in it just for socialization—many are there to see if they can find the right seller of a given product or service. That being said, with the right social media management plan, you can attract many potential customers. Not sure how to manage your social media presence? Browse here for more information.
Another reason this channel is preferred is its cost-effectiveness. The amount you spend to publicize your products and the number of people you reach within a few hours or days make for a fair deal. You’ll still have to plan and allocate your budget wisely to avoid overspending where and when you shouldn’t.
Here are a few tips you should keep in mind to improve your social media budgeting strategy:
Determine your total budget based on your goals
Before getting started, you’ll need to know how much you plan to spend on this digital marketing plan. There’s no right or wrong amount regarding marketing in general. Your budget should align with the size of your business and your revenue. Overspending can severely affect your financial well-being, while underspending can deny you many opportunities.
As a general rule, B2B companies should allocate about 2% to 5% of their budget to marketing, while B2C should set aside anywhere between 5% and 10% for the same. Of course, these values are primarily industry-specific, and some fields will require more money to meet specific goals. In fact, it’s projected that B2C services and B2C products will likely demand well over 18% and 21% of the marketing budget in social media alone within the next few years.
As you work out your budget, consider your industry and the current trends in the marketing world. Be sure to set aside enough money to not only help you meet your goals but also allow your business to compete with the best in the market.
Include all essential aspects in your plan
Several essential factors make a successful social media marketing campaign. You must have the right personnel, content, and tools. All these are essential for your strategy, but many upcoming entrepreneurs forget to include some of them in their budget. Here is a detailed list of these critical factors and how they affect your fund's allocation:
Content creation: Content is one of the most crucial aspects of any marketing campaign. Whatever you post on your social media pages can attract or repel potential customers. Therefore, you must invest enough money in this area. You can hire a freelance content creator to write engaging content and create videos or images that go with your posts.
Software and tools: Design and editing, social video, social media monitoring, and competitive analysis tools are some of the software programs you should include in your budget. Be sure to only invest in those that play a relevant role in your campaigns.
Marketing personnel: Apart from content creators, you’ll also need influencers and social media managers as part of your team.
Social media campaign ads: Another factor to include in your plan is paid social media ads. The cost of these ads depends on the social media site, the size of your expected outreach, and the number of active days.
Analyze the costs from previous months
If this isn’t your first time running a social media campaign, you should consider revisiting your previous budgets. How much did the whole marketing plan cost you in the previous months? Did you meet your goals after investing that amount in your campaigns?
Your previous social media report should be your primary source of information before you go ahead with any budget. While at it, make sure you also check the current trends and update your plans accordingly. This way, you’ll be able to continue competing with the rest of your rivals in the digital world.
Conclusion
Social media is currently at the top of most companies’ priority lists. Since it’s cost-effective, budgeting for this form of digital marketing is still vital. Make sure you understand your goals, the demands of your industry, and the tools needed to meet your objectives. With this knowledge, you’ll clearly see how much you require for your social media marketing campaign to run smoothly.
