With more than 4.55 billion people actively using different social media platforms, there is no denying the popularity or craze of these mediums. As such, using them for marketing brands is an excellent idea. With smart and effective social media marketing, you can connect with existing customers while gaining new ones on the way. It is a great way to develop a bond of trust with customers while motivating them to purchase your services and products.
Social media marketing has multiple aspects, and as such, calculating its cost can be tricky. In fact, there are numerous factors that you need to consider before you allocate a budget for social media management. To calculate the social media marketing price list, one needs to consider the company you chose, the employees’ expertise, the plan you opt for, and the number of social media platforms you want to use for marketing your business.
The average cost of social media management that companies usually spend ranges from $4000-$7000 each month. These include a personalized advertising and marketing strategy on different networks along with a monthly ad expense.
Social Media Management Cost Details
On average, social media marketing cost ranges from $900 to $7000 each month. This is particularly when you opt for outsourcing. In this pricing, you will get full-time management for multiple social media platforms and campaign development.
When it comes to social media advertising, the average cost is somewhere between $450-$6000 each month. Here, you need to consider monthly ads expenses that cost $200-$50,000+. Here, a wide array of factors plays a crucial role.
In essence, social media management costs an average of $900-$20,000 each month.
The wide range of factors makes the price rates so flexible and variable.
The Cost of Advertising on Various Social Networks
There are different social media platforms that you can use to advertise your business. Now, here the price rate fluctuates due to the popularity of a specific network. For instance, if one platform has more users than others, you will need to pay more.
Facebook doesn’t charge anything for opening a business account. But, there are some paid options you can consider. Facebook Marketing Services on Facebook costs $900-$1600+ each month. Facebook social media advertising is somewhere in the range of $450-$850+. You also need to invest at least $200+ on ads per month.
When it comes to setting up a business page on Instagram, you don’t need to spend a dime. However, you can opt for sponsored posts that will appear in users’ feeds. For a photo ad on Instagram, you can pay an average of $6.70 per thousand views.
Opening up a LinkedIn account is absolutely free of cost. However, if you want some professional help, you will need to pay. Here, the cost of social media marketing is $900-$1600+ monthly. On the other hand, the social media advertising price rate is between $450-$850+. You will also need to invest $200+ in ad spending monthly.
Twitter, like other social media platforms, doesn’t charge anything to set up a business account. However, there are several options you can explore to use Twitter for marketing. For instance, the average price for promoted tweets is $1.35 per engagement. Moreover, you will need to pay $2.50-$4 for each follower for account promotion. When it comes to trends, around $200,000 per day is necessary. This is only possible if you have a huge marketing budget.
How Much do Businesses Allocate Budget for Social Media Marketing?
With the rising importance of social media, it is without a doubt that business organizations are paying attention to it. Now, they allocate special budgets for social media marketing.
According to The CONTENT FACTORY, businesses tend to spend $200-$350 each day on social media marketing. That means, $6000-$10,500 monthly and $72,000-$126,000 yearly.
Apart from that, DELOITTE’S CMO survey also cites that organizations allocate an average of 13% of their total marketing budget on social media marketing. This clearly pinpoints the importance of investing in social media management.
Ultimately, the amount you spend on social media management depends on multiple factors. These include the number of paid aids you want, the number of social media platforms you want for marketing, and whether you want to outsource or hire an in-house team for social media marketing.
On a final note, businesses tend to choose the best budget that suits their needs and financial condition. You cannot simply go overboard if you don’t have the economic backbone to fall back on. That is exactly why social media management agencies offer different packages with varied services. You can easily choose the one that aligns with your budget the best.
Some agencies also offer custom pricing for social media management. In that case, you need to make sure that the advertising and marketing services have the platforms and features that you are looking out for.
Factors That Play a Major Role in Determining the Social Media Marketing Budget
There is no standardized rate for the social media marketing budget. It varies depending on a wide range of factors. Here, you don’t need to worry about spending thousands of dollars on social media marketing if you have a limited budget.
Take a look at these factors which determine the social media marketing budget –
- The size of your business: If you have more employees, you likely need to spend less on social media marketing. That has mostly to do with the recognition that the company has attained.
- The size of the agency you want to hire: The bigger the company you want to recruit, the more the budget will be.
- The sector: The industry your company is in plays a major role. For instance, retail or cosmetic companies spend more than IT companies.
- Social media ads: There are different types of social media advertising. Prices will vary depending on the platform.
- Tools and software: The number of tools and software the social media agency uses for your project will also play a critical role in determining the budget.
- Specific goals: The end results matter a great deal in the allocation of the social media marketing budget. For instance, do you want to improve brand visibility? Or, are you more interested in getting more sales?
- Plan type: Different social media agencies offer various plans. These have different price rates and come with different offerings.
Tips to Maximize the Social Media Marketing Budget
Are you still unsure about the allocation of the estimated money for social media marketing? Are you debating if the investment is worth the advantages of social media marketing?
No matter the budget you have, you need to make sure that it is spent wisely. Here are some tips that you can consider to maximize the social media marketing budget –
- Establish Your Goals
The first thing you will need to do is set the goals and objectives of social media marketing. However, for this, you need to know more about the current state of your social media presence. If you have nothing to start with, you can proceed without any hassle. But if there is an existing campaign, you need to assess the metrics and see what’s lacking.
- Identify Target Audience
Another vital tip that you need to focus on is knowing the target audience. That will aid in the development of content and advertising. Moreover, you also need to have detailed information on the target audience. For instance, understanding their pain points will help you upload content that solves their issues.
- Assess Analytics
You need to analyze the performance of the social media posts that you upload. That way, you will have a better understanding of what the audience likes and dislikes. In that case, you can allocate the budget according to the platforms that need more attention than others.
Choosing the Right Social Media Management Agency Matters
When it comes to effective social media management, you need to dedicate ample time to choose the best agency. You cannot afford to hire the first firm you come across. That will have a devastating effect on your budget and impact the existing social media campaigns. For excellent results, research the company and make sure that you make the right hiring decision.
In this era of social media hype, using these platforms for marketing your business is an excellent idea. And if you haven’t yet implemented any social media marketing strategy, you are giving away potential new customers to your competitors. However, calculating the social media management budget is not an easy feat. You need to take into consideration various factors before you allocate the funding.
After you have got an estimated amount of social media management spend, it is time to hire the best social media firm. Then, you can know more about different services and choose the plan that fits your needs the best. Keep in mind that you need to opt for a social media marketing plan that offers an excellent ROI.