With 3.08 billion people on social media sites and people spending an average of 3 hours on these enticing platforms, having a good social media strategy has become crucial for businesses. There are many ways a business can benefit from a social media site and this is why we are witnessing the proliferation of SMM in most of the organizations.
Businesses of all sizes and industries are working hard to build an impeccable social media strategy but in order to make it give you palpable results, you will need to set the right budget for it.
Allocating the right amount ensures that your goals are always backed up by the required amount of money. Whether it is about promoting a new product or rebranding an existing category, you will always need a proper budget for social media marketing campaigns because, without a budget, it will become impossible for you to know the ROI of your work.
But since there is no one-size-fits-all approach while setting the budget for your SMM campaign, you will have to analyze your finances, goals, and priorities in order to allocate the right amount. It doesn’t matter which industry you are in or how low your budget is, these are the key components that you need to consider for deciding the right budget for your SMM campaign.
What is the impeccable amount of money that a business should spend on SMM campaigns?
Social media marketing is paramount for every business since 40% of the world population is on social media sites. In order to harness the advantage of such a large audience base, you will have to make sure that money allocation for social media marketing campaigns should be one piece of a large marketing pie.
According to the U.S Small Business Administration, if your business is doing less than $5 million in a year then you should be spending around 5 to 7 percent of your revenue on your marketing budget. And if you will go with the most basic marketing budget allocation then you can adopt the 5% rule as well.
But this should only act as an influence while deciding the marketing budget since the budget and goals of every business are different and that’s why using these standard budget allocations as a base might not be a good idea.
In order to decide the right budget for the SMM campaign, you will have to consider various factors that will affect your money allocation. But what are these factors? Let’s find out.
Factors to consider while allocating budget for SMM campaign
You will never be able to decide the right budget for your SMM campaign if you will have no idea about your goal. For example, if you are hoping for better brand exposure through your SMM campaign, then you might need to invest heavily in paid ads rather than relying on free promotion.
In order to decide the budget on the basis of your goal, you will need to look at your previous year’s goal and budget. Were you able to meet your goal with the decided budget? Was there any mismatch between the goal and the budget? Considering these factors will aid you with your goal based budget allocation.
1. Content creation
Content creation is the most time-taking process of your SMM campaign and that’s why it will also influence your budget allocation. It doesn’t matter whether you are going to create content through your full-time content writer or outsource it, it will surely need time, money, patience, and planning.
If you have a plan of multiple posts in a single day then you will have to produce content on a similar basis and thus it will increase the amount spent on creating content for your social media marketing campaign. Both the frequency of content creation and its quality will impact budget allocation for the SMM campaign.
2. Social engagement
A social media campaign is a far cry from banner ads as unlike banner ads, you will have to engage and respond to people that will be reacting with your social media ads. And since there will be many social media ads and many people will be interacting with them, you will need professional help to manage this.
These social media experts provided by social media marketing services will interact with the people responding to your ads and since it is a very necessary part of your SMM campaign, you will need to work with experienced and skilled people. Hiring, training, and managing these professionals will have a big impact on your SMM budget and that’s why you can’t ignore it.
Automation is crucial for your SMM campaign since you can’t do everything manually and for this paradigm shift to automation in your SMM campaign, you will need software and subscriptions.
The advanced software solutions used by companies providing social media marketing services will help you in giving you detailed reports about your SMM campaign, and you will also be able to schedule your SMM ads through them. But for using these software solutions, you will have to buy the subscription that needs to be renewed on a monthly or yearly basis.
If you are already using software and looking forward to upgrading it or use a completely new software solution then you might need to include some padding to the budget.
Advertising is another large budget portion that you will need to cover in your SMM campaign. If you are using a multi-channel approach then you will have to decide how much you are going to spend on each channel. If you have a better presence on Instagram then you will have to allocate a bigger portion of the advertising budget to Instagram in comparison to other platforms.
You should know that the average click per ad varies from one platform to another and it also depends on the type of industry you are in. In order to keep your advertising budget economical, you will have to target a specific group of customers as the more the target base will be, the more money you will need to spend. A reputed company providing social media marketing services can help you with your advertisement planning.
In order to make a social media marketing campaign successful, you will need the right people, the right strategy, and most importantly, the right budget. If you will have money to back up your plans and strategy, then you will surely get palpable results from your efforts. From measuring the ROI to using resources properly, a properly planned budget for the SMM campaign will help you in many ways. If you feel like talking to our SMM experts and want to know more regarding budget allotment for your SMM strategy, then we are just a call away! Contact us today!