How to Lower the Cost of Social Media Advertising
Today, many companies are interested in social media advertising and why wouldn’t they? After all, advertising on social media is a huge game changer today as you are able to reach out to a huge audience and you can do so mobile. That’s huge as most users spend at least an hour and a half per day on their mobile devices. The problem, however, is that often, those companies don’t get on with the process as they don’t know where to get started and they can’t figure out a close estimate of the social media advertising costs. In fact, many are afraid as there is such a negative connotation surround social media advertising costs. There are plenty of rumors out there that claim that it eats away at your budget without having much to show for it. Although that may be true to some degree, it doesn’t have to be if you advertise on social media the right way. This can be accomplished with the help of a solution like our own.
TEA
TEA, which stands for threat and engagement analytics, is our social media advertising campaign management agency that works to provide you with the tools necessary to detect and eliminate threats as well as analyze user engagement in order to identify any obstacles or trends.
This is made possible with the help of tools such as engagement trends analysis, which assists users with identifying visitor behavior trends, and remarketing segmentation, which let users target actual potential users with the right ads. In addition, we offer both automated click fraud protection and engagement fraud protection which guarantees that all of the gathered engagement data is related to actual visitors versus bots. On top of that, we provide users with a dashboard, which gives users a 360-degree overview of every single one of their marketing campaigns, therefore, they get information about both their activity and performance. However, this is just an overview, therefore, if you’re interested, you can watch a free webinar on our site.
Social Media Advertising Costs
Now that you are acquainted with a solution that can keep your budget from being eaten away by social media advertising, let’s go over a few social media platform costs that way you can have a general idea of what to expect. When advertising on Facebook, the largest social media platform with more than two billion users, you can expect your CPC, or cost-per-click, to be around $0.54. Instagram may not be as big, but it is rapidly growing and has a very high engagement rate. Advertising on there is much higher, though, with a CPC average of around $2.40. You’ll find the lowest average on Twitter at around $0.36. On LinkedIn, however, you’ll see the highest CPC average at around $6.50. Although these are only some of them, they are definitely the top contenders.
Bidding and Budgets
A huge part of a social media advertising cost is the bid. Amongst all of those platforms, the two common types that you’ll find are maximum and automatic bidding. With maximum bidding, you are able to set the amount that you are able to spend in order to reach your campaign objectives. As the name suggests, automatic bidding lets the platform automatically choose the bid for your campaign while taking into consideration both your objective and your budget.
Another factor that you are allowed to set on your own is your budget. Therefore, technically, you shouldn’t be going bankrupt from social media advertising as you’re the one who controls how much is spent. You can choose between either a daily budget or a lifetime budget. With the daily budget, you set the amount that you are able to spend on a daily basis for a specific ad. The lifetime budget, on the other hand, is the amount that you’re willing to spend during the lifetime of an ad.
The beauty of advertising on social media, however, is the fact that although you’ve set both a budget and a bidding option, you won’t necessarily be spending all of the money that you’ve laid out. The amount that you actually end up paying is based on the amount that you need in order to beat your competition to get your ad placed. In the end, every platform will just charge one cent more than your rival. As a result, typically, the amount that you pay ends up being smaller than your initial bid. In addition, you only ever end up getting billed when your campaign is actually clicked or liked, for instance.
How to Lower the Cost of Social Media Ads
Now that you know what to expect when it comes to the cost of your social media ads, there are a few steps that you can take to actually lower the normal price. For one, you should be testing out a number of elements that you can’t organically. They include your goals, audience demographics, pricing options, and placement. If you don’t test things out, then you won’t be able to optimize your ad campaign. After all, you want to make sure that it’s relevant and up-to-date that way you can beat out your competition. In addition, you want to make sure that you spend plenty of time on targeting. If you end up targeting too broad, for instance, then your money will be invested into those users who will both be likely to convert in addition to those who have a very slim chance of doing so. However, if you target just the right amount of people, you’ll see the greatest ROI. You also want to make sure that you don’t neglect ad quality scores. The higher your score, the less you pay, therefore, you want to make sure that you meet the recommendations that of the social media platform that you’re using. If not, you’ll have to pay more or your ads just won’t be shown to the right people. This way, your money and time will just go to waste. The last piece of advice that we can give you is to put a stop to those campaigns that are simply not working. The sign could not be clearer, therefore, don’t be stubborn, learn from your mistakes, and move on to next ad campaign.