We're already past 6 months in 2021 and many business owners are still wondering how much money they should set aside for their social media management for the coming year and a half.
Is it so difficult? We asked a few of our customers, and then we realised yes it is.
Until now, we only had an agency perspective, but with this article, we are presenting some of our findings from your side.
At the end, we will help you decide how much you should be spending on social media marketing in the remainder of 2021 and 2022.
Social media marketing has proven lucrative, and now it has become a necessity too. However, there should be some boundary on how much you should be spending on it.
So, let’s get to the real question we have today.
How Much Money Should You Spend on Social Media Marketing in 2021?
The average business spends 7 to 10 percent of their gross revenue on marketing and advertising every year.
7% is actually recommended when a business makes less than $5 million every year.
10%-12% is recommended when a business makes more than $5 million per year.
So, what about small businesses like startups?
We suggest the maximum you should spend on social media marketing and management is around US $200 to $500 per month. Well, this is a big range but the budget is sufficient.
We are not joking. Especially when it comes to our social media marketing plans.
For most companies, getting more leads for their business is the primary goal they have for social media. So choosing the right social media package can be a smart move if you want to stay on the wheel while getting more gas on the go.
Does the big budget theory always work?
The simple answer is no. There's no need to spend an extravagant amount if you are just looking for a good presence, effective reach and enough business through social media. You can get what you want at a LOW cost!
A big budget marketing is a bubble. We aren’t saying it’s a total waste; but why not spend less when your requirements are small?
Does it work?
Yes, a reasonably priced social media marketing plan works just like anything else.
What do you get with a reasonably priced social media management package?
Audit of your current marketing efforts
Get a custom audit of your business’ current marketing efforts. This is necessary to decide where your marketing is going wrong and find loopholes in it. Different types of audits can be conducted for your social media to determine organic traffic, paid traffic, content popularity, etc.
Creating a strategy above all
An audit will define loopholes in your current or past social media marketing which will help you in creating a fresh strategy. Get a strategy in place for your social media marketing to beat the competition, and gain more customers. An ideal strategy should be so refreshing that you might see performance in terms of traffic, likes, shares in a reasonable amount of time.
Get attractive and creative content created in the forms of images, videos, GIFs, blogs, and whatnot. Content creation needs time so allow your social media manager to brainstrom. Answering questions is your part where they will ask information about your business, audience and what type of content you usually want to see on your social media accounts.
Let an agency handle social media profiles on your behalf. You will be present on evergreen social media platforms like Facebook, Instagram, LinkedIn, Pinterest, and more. Content posting also needs a strategy which your social media managers will present to you. Every agency or a freelancer has a different strategy so listen to them carefully and suggest changes in the strategy if you think certain things will not work for your business.
Isn’t this enough?
We say, it’s more than enough for startups and small businesses.
With social media marketing, you are bringing your brand’s voice on social media platforms, and for this, an affordable social media marketing plan will help you connect with your audience in swift.
So when we are talking about affordable social media marketing, does it come with any disadvantages?
Some people might think it can impact creativity. But it's not totally true.
Can Creativity Impact the Cost of Social Media Marketing Budget?
Cost and creativity don't always go far from each other. But with certain moden tools and intelligent management, creativity can be delieverd at a lower cost. Cheap doesn't always mean lame and the same principle is followed at many agencies that offer social media marketing on lower budgets.
Creativity and engagement tactics are magnets to connect your business with audiences efficiently, get organic traction, and are a better ways to get more likes, comments, and shares. This all can be done in a lower budget which can be an affordable option for your business.
An end-to-end social media marketing package should ideally not cost you more than $500 a month considering you are ready to spend on advertisement separately.
Now, the real question - what should you be spending on social media marketing?
It’s easy to suggest you an average, i.e. 25-30% of your overall marketing budget on social media marketing.
However, every business has different needs. Every business behaves differently in different circumstances so there should not be a game of assumptions when it comes down to spending. (We are not talking about advertising here.)
Marketing your brand is NOT all about spending on advertising. Rather, it should focus on creating a holistic experience for your possible customers when they land on your social media pages.
If you are just starting up, set $100-200 a month as your social media management budget and check what you are getting for it. If it nears your expectations (considering the budget), expand it a bit more.
Here's a 4 step approach that may help you while deciding budget for your social media marketing:
Whom you want to talk to: Don't address the crowd. If your business is working in a niche, you must focus on your targeted and filtered audience. Everything else mentioned above will fit in if you'll focus on a specific group of people. Remember - only social media marketing won't help your recently started business to become a profitable one. It will surely help your buyers make the right decision though.
Select social media networks with culture: Life is all about culture. Even social media platforms have their own culture. Considering the style of your business, choose the social media platforms that'll work for you. There's no single platform that holds all the power, so choosing multiple platforms should be your best guess. If you are not sure, a social media manager or an agency will help you figure it out.
Set a user-friendly value proposition: A value proposition is what value you promise to your customers. Value proposition will help you beat the competition. This should be relevant, visually appealing, clear & concise, and should have a call to action. This will change the way you present your business on social media platforms.
Create different types of content: What type of content should you be sharing on social platforms? This has no simple answer as you'll be testing different content considering your business model. You should be flexible when you are running your social media marketing on a budget. Just blogs or posts or videos won't work for you. You'll need to keep testing different content for the time being.
We hope the process mentioned here and this article helps you determine a fair budget for your social media marketing for the remainder of 2021 and 2022. Any questions or comments are always welcome!
Do you want a social media marketing plan for your business? Are you looking for a reliable agency your social media marketing?
At Socinova, our end-to-end social media management plans start at just $99/month. Our affordable packages have been attracting many businesses across the world and we're happy to be a partner in their social media success.
We invite you to explore our packages and take advantage of our affordable social media marketing services today!