Creating budgets has never been the easiest thing to do – it requires a lot of thought, planning, and predicting. However, when you’re utilizing your budget in the correct way, you can grow your business exponentially. In today’s market, having an ample social media budget is more important than ever. But how do you make sure you’re using your social media budget to its fullest potential?
1. Decide how much you’re okay spending.
Marketing budgets often stretch over many different forms of advertisements, both online and offline. There is definitely merit to all forms of advertisement, but in a world that is moving towards a greater online presence, it’s important to designate a social media budget within your overall marketing budget. Whatever budget you’ve set aside for your overall marketing, you should generally set aside 50% or more for social media. This does depend on your product, location, and target audience, but this is a good rule of thumb for general purposes. However, the best way to figure out the perfect balance is to perform some tests for your audience.
One way to experiment with your social media advertisements is to start with an ad that you’re spending $5 on per day. If you’re not seeing any change in engagement, try raising the daily budget. Additionally, you can split up your daily budget among several different ads; rather than spending $30 to promote one ad, promote three separate ads while spending $10 each. But how do you decide which ads are worth promoting?
2. Do an A/B test for social media ads.
Different demographics enjoy different types of content. For this reason, your analytics will be highly beneficial in figuring out the best way to use your social media budget. In short, analytics show you the age, gender, and location of the majority of your audience. You can use this information to target your posts based on the interests of your audience, which will in turn boost the audience’s engagement with your posts.
When you’re creating ads for your target audience, an A/B test can show you which type of ads perform better with your audience. Essentially, an A/B test creates two random groups from your audience and shows each a different version of your ad. Then, based on the results, you’ll have a better idea of which ads your audience prefers. There are several different variations of A/B testing as well, so you can try several different types to see what ads your social media budget should be going towards.
3. Keep an eye on the CPC.
CPC stands for “cost per click.” Facebook describes CPC as “the total amount spent divided by link clicks.” When you’re advertising on social media, you typically will set a budget per day that you’re willing to spend on a certain ad. Each time your ad link is clicked, a portion of your daily budget is taken out.
Ideally, your CPC should fall below $1 per click to make the most out of your social media budget. If it’s any higher, you’re spending too much on your advertisements each day. The goal is to be spending between 20 and 50 cents per click – this will allow you to reach more of your audience without necessarily adding more to your daily budget.
4. Contact Blackwood!
Feeling a little lost in the wild world of social media advertising? Don’t worry, Blackwood Creative is here to help you navigate each platform and use it to your business’s advantage. Reach out to us today – we’d love to work with you!