Social media advertising (meaning spending money on Ads products from social networks) is a must have, plain and simple. The faster Brand Managers and CMO’s get their heads around that the better off their brand will be. How much to invest and how to allocate is the next question.
Truth is there is no boiler plate budget to allocate, especially for a brand still trying to figure out its way on paid social. First, I think it is important to not think about it as paid social Vs. traditional means of advertising, because it becomes abstract and decision makers get gun shy about jumping into an unknown arena. We suggest you think as a human being living in 2017 and think about where people are paying attention and how you can reach them cost effectively. If you can find underpriced areas to reach targeted prospects, you should entertain that, wherever it might exist, right? Make a threshold decision to at least explore those and you’ll find that social media platforms are very attractive in that regard.
One you have made that smart decision, then I do think you need to be able to allocate a healthy budget that is consistent and doesn’t waiver as soon as the winds change. I suggest brands allocate enough so they can balance between acquisition, retention and R&D/experimentation. Explained further:
You want to be able to allocate funds to reaching brand new eyeballs and bringing them in at the top of the funnel. This is done with clicks campaigns and boosted posts targeted at new audiences. It is very important to allocate a fair amount to this initiative, as this is your method for advertising to brand new prospects. You cant skimp on this and you need to constantly feed the top of the funnel, if you ever wish to convert consistently downstream.
Almost 10 years ago I purchased a billboard placement for 1 month on the Long Island Expressway for $30,000 because it allowed me to put my message in front of “over 1 million commuters” (BS) to create the same type of awareness. Mind you that those commuters were not all looking at our ad (most weren’t), were not targeted (so our product didn’t apply to many of them) AND there was no CTA at all to move them down the funnel and/or track them. Social networks allow you to target the right audience without overpaying for the reach of others, provides you with a CTA opportunity AND awesome insights and reporting.
You also want to take people further down the funnel with retargeting as part of a conversions campaign and want to message to your earned audiences (visitors, emails, fans etc.) to keep them in the community and engaging with and hopefully sharing your content. It also allows you to have a more receptive group to target when you roll out new products and SKUs. Those who know and love the brand are the most likely to pounce when you diversify and add more options. Retargeting is a surefire way to convert new customers and repeat customers too, just with slightly varied messaging. New sales are your foundation and turning a one time customer to a repeat customer, is a very important building block for online success.
Lastly, you want to have a budget focused on experimenting with new techniques (different audience segmentation, dark posting etc.) and with new products from social networks as they roll out, so you can be an early adopter and capitalize on underpriced attention before the big guys roll in. Facebook, Instagram and Pinterest continue to roll out advancements (seemingly daily) and you want to have dollars available to put in play. Whereas Google PPC Ads are very overpriced and flooded in most categories, Instagram Ads optimized for video views, are actually less so and provide great value for their price. We are big believers in that approach at the moment and the clients we have with those available funds are reaping the benefits of this recommendation.
Bottomline is you need to first commit to the idea that social networks are a real value play for your budget. Then you want to allocate funds to all three of the areas above, and don’t want to deplete an initiative to fund another one, before you give it the chance to really kick in and return nice results. Now I am not saying it needs to be equally distributed into thirds, and at times it will likely lean more heavily in one area. What I am saying is brands need to fund all three consistently, monitor the performance closely AND remain focused on proving the positive (it works) rather than the negative (it doesnt).
Do that, and you will win!