How much of ad spend do you need to allocate for your business?

No matter the industry you are in, allocating ad spend is essential if you want to boost brand awareness, increase your market share, and drive your business forward if you rely on social media as an advertising outlet.

According to Jenkinson & Associates Marketing with results, “The average company spends around 5% to 15% of their revenue on marketing.” Starting at a lower budget is totally fine but going low does come with its own dynamics that should be considered such as:

– A low budget limits the fuel for your campaign and ultimately limits the reach of the ad and possible returns.

– Often forces the ad in more saturated and competitive bids as most advertisers compete with lower budgets when looking

– From our experience lower budgets often increase the cost for reach or CPM unless the ad is highly engaging.

– Lower budgets force the ad win placement on sought after ad placements less persistently.

Our number 1 tip on how you can get the most out of your social media ad spend

Social media Facebook, Twitter, LinkedIn etc. measures how your ad is being received by the audience you are targeting, and if your ad is being received well…your ads often get shown to more people for a lower price.

Facebook has its own criteria when considering ad placements besides budget, ads on Facebook are generally served at lower cost if they are seen as more relevant to the target audience this is measured by a few aspects about the ad such as engagements (reactions, comments, shares), how much time a person spends engaging with the ad etc. There also exists negative criteria that can increase the cost of reach or in extreme cases a ban can be placed on the advertising account. These are things like people reporting or hiding the ad from their newsfeed.

If you would like to leverage an experts view before clicking the big blue “Boost” button, speak to us. We are digital media buyers with over 10 years of in-depth experience in the industry.