Social Media Budget Mistakes and How to Avoid Them
- Finance 101, Social Media

Social Media Budget Mistakes and How to Avoid Them

 

Common Social Media Budget Mistakes and How to Avoid Them

If you use social media, you’ve probably seen sponsored social media ads on your timeline. These ads are primarily used to increase followers, brand awareness, lead generation, views, engagement, or app downloads. In such a competitive and crowded market, marketers primarily want their ad campaigns to appear on your feed.

Survey findings show that social media marketing expenditure will surpass $56 billion by 2022, up from the $40 billion it reached in 2020. Over 90% of US businesses currently use or intend to use social media for marketing.

Creating a Social Media Budget

A social media budget is a detailed plan presented on a spreadsheet that outlines the amount you intend to spend on social media over a month, quarter, or year. It provides a clear picture of the expenses of your social media campaigns and is an effective tool for calculating return on investment.

No specific amount needs to be spent on social media marketing. However, while making a budget plan, keep these questions in mind:

  • What are your company’s objectives?
  • How much of your company’s revenue do you want to set aside for social media marketing?
  • What is your social media USP?
  • What are the best social media platforms and tools for your company?
  • How important is it for your brand to be on social media?
  • How frequently do you want to spend on advertising?
  • Do you want to hire a full-time employee or work with digital marketing agencies?
  • How will you deal with other competitive brands on the platform?

This article will discuss some common social media budget mistakes in depth and share tips to avoid them.

6 Social Media Budget Mistakes and How to Avoid Them

Not Establishing SMART Campaign Goals

It’s crucial to establish objectives for paid social media advertising. A great way to measure the success of your campaign and determine whether you need to modify your ads to attain these set goals is by having SMART goals – objectives that are Specific, Measurable, Attainable, Relevant, and Timely.

SMART goal example format:

To attract 500 new followers, we will execute a $150 campaign on Instagram and TikTok for two weeks (February 1–12).

Remember to focus on one specific goal per campaign and allocate your resources to it rather than having several goals like brand visibility, lead generation, and getting more followers all in one.

Not Using A/B Testing Tools for Your Social Media Ads

A/B testing helps you optimize your campaigns by comparing two or more variables and choosing the best option based on your ad goal. Rather than assuming which content will produce results, using A/B testing tools for sponsored posts will offer you the most value for your money and provide information on common social media habits to help design future marketing strategies.

The length of the post, hashtags, a call to action, the ad format, and the target audience are a few variables you can A/B test to evaluate what works best. You can experiment and tweak your paid ads using A/B testing to get optimal results and ROI.

Not Using Different Ads on Different Social Media Platforms

When it comes to paid advertisements on your social media channels, one size does not always fit all. Each platform has different social media habits. For example, a sponsored post on TikTok won’t perform the same on Facebook since your target audience can be completely different. Since Tiktok has a younger user base, you should consider changing the ad’s call to action, tone, and design catering to these audiences, compared to Facebook, which has an older user base.

Not Spending on Tested, Approved, and Reliable Marketing Channels

One of the most efficient ways for businesses to reach and interact with potential customers is through email marketing. Unfortunately, this marketing channel is often underestimated. If you generate leads through email marketing with less effort, imagine what you can do by giving this channel more attention! Be sure to allocate a higher budget and pay attention to high-performing marketing channels.

Not Hiring a Marketing Agency

The pandemic has changed how businesses work. Both small and large companies strive to complete the finest work possible without paying exorbitant wages, incentives, and taxes. So why not outsource your marketing? Digital marketing companies have experts on board who can do the job without you having to train them. These firms will include industry experts with innovative ideas, the right tools, and the time to grow your brand.

Simply having a business account on social media is not enough. You must put in time and effort to increase followers and sales through these platforms. Digital marketing agencies can help you boost your social media following organically by creating eye-catching content.

Not Focusing on Existing Customers

Because getting a new customer can be so rewarding, companies frequently focus on customer acquisition. However, the reality is that acquiring a new customer might be five times more expensive than keeping an old one.

By focusing on existing customers who have already purchased from you or have signed up on your website, you significantly increase your chances of making a sale. Research by Bain & Company’s Frederick Reichheld found that raising customer retention rates by 5% increased business profitability by 25% to 95%. Providing surprise gifts and discounts, pre-sale access to new products, and birthday and anniversary offers are a few examples of customer retention marketing.

In the early phases of a business, acquiring new customers is crucial, but once you’ve established a clientele, you should focus on customer retention. Remember that 20% of your existing customers will account for 80% of your company’s revenue.

Sum Up

Developing a social media marketing budget is a difficult task. You should know how to prevent common mistakes while setting your marketing budget since a single mistake can derail your entire marketing strategy. Your social media marketing budget should evolve alongside social media. Invest in the right people, research the social media habits on each platform, and create a detailed social media marketing budget that accounts for content creation, sponsored ads, influencer marketing, and other investments. This will help you market your products and services to the right audience.

Social Media Budget Mistakes and How to Avoid Them

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