Advertising on social media is not without risks. As a marketing tool it has not been tried and tested and Facebook ads in particular have been controversial in some aspects.
One needs to understand how social media works and the best advertising strategy for this platform.
So how much should one spend on Facebook Advertising?
The short answer is that it all depends on the goals, conversion rates and other data points that a business already has.
“What does $1 in Facebook Advertising actually generate for a business?”
Let’s consider some key performance indicators of social media advertising – clicks, impressions, engagements and community growth (followers).
Now, if you’re trying to decide where to place dollars in social advertising, consider these possible results:
$1 spent on Facebook could get you:
- 4 Website Visits
- 2 Page Likes
- 11 Engagements
- 117 Impressions
Now the fun part. If you take that USD$1 and turn it into USD$500 dollars, how much impact would social media advertising be generating for your brand?
$500 Spent on Facebook could get you:
- 2000 Website Visits
- 1,136 Page Likes
- 5,556 Engagements
- 58,207 Impressions
Exciting right? The key takeaway from this data is knowing what you reallywant/need for your brand. Will a spend of USD$500 to get more Followers make an impact on your business (outside of make your page look better)? Will a spend of USD$500 to send 2,000 targeted website visitors to your site make an impact?
The safe answer is a combination of each is important. Again, the data here is not definitive, but based on a selection of our clients and the results we’ve seen them achieve, on average, which, we believe, is indicative of a realistic expectation for almost any company, given the right approach.
MARKETING Magazine is not responsible for the content of external sites.