Marketing Budget Optimization<\/figcaption><\/figure>\nWhen you invest valuable financial resources into advertising your business on social media, it is essential to optimize your advertising budget to get the best results.<\/p>\n
It can be tempting to spread your budget out across a variety of different channels, however, this is not recommended.<\/p>\n
After you identify which social media channel presents the best opportunity for your business, you should focus your ad spend on that channel.<\/p>\n
You can then evaluate the success of your ads on that channel and make changes only if you are not seeing the results that you want.<\/p>\n
There are several important metrics you will need to monitor to evaluate the success of your advertising campaigns:<\/p>\n
Cost per Acquisition (CPA)<\/strong> – This metric measures the average cost it takes to acquire a new customer. For example, if you spend $1,000 on a campaign that leads to 10 sales from new customers your CPA for the campaign is $100.<\/p>\nCustomer Lifetime Value (CLV)<\/strong> – This metric measures the average total amount of profit each customer will bring to your business over their lifetime. To find your CLV you multiply your transactions per period, average order value, average gross margin, and average customer lifespan. You then divide this amount by the number of customers per period.<\/p>\nReturn on Ad Spend (ROAS)<\/strong> – You calculate this metric by simply dividing your revenue generated from an ad campaign by the amount spent on ads. You can multiply this number by 100 to find a percentage of return. For instance, if you spend $1,000 on an ad campaign that generates $5,000 in ad revenue your ROAS is $5 for every $1 invested or 500%.<\/p>\nWhen measuring the efficacy of a campaign, you should look for the CLV of the customers you gain to exceed the CPA. This simple comparison will tell you if you make more from each customer over their lifetime than you pay to acquire them.<\/p>\n
If your advertising campaigns for your primary social media channel consistently perform well, there isn\u2019t a need to divert your advertising budget to different channels.<\/p>\n
But if your campaigns start to see diminishing returns or stop yielding the target results, you can consider shifting part of your ad budget into secondary channels.<\/p>\n
\n
Key Learnings<\/h2>\n
A large social media following can be beneficial but you can still market your business on social media without one.<\/p>\n
The first step to marketing your business on social media is to choose the best social media networks to focus on. To do this, you\u2019ll define your customer profile and match it to the predominant characteristics of the audiences for different social media networks to find which platform is best for reaching your desired audience.<\/p>\n
Once you choose your social networks, you can begin optimizing your business pages by adding all crucial components such as contact info, about us, profile image, cover photo, and making sure you have a clean and friendly social handle\/URL.<\/p>\n
Visitors are unlikely to engage with an inactive page, so it’s important to begin posting content regularly so that your business appears active.<\/p>\n
You also want to establish your marketing goals early on and how you\u2019ll measure their success. Popular social media marketing goals include:<\/p>\n
\n- Brand awareness<\/li>\n
- Lead generation<\/li>\n
- Sales<\/li>\n
- Mobile app growth<\/li>\n<\/ul>\n
If you want to take full advantage of everything Facebook has to offer, you can begin running Facebook Ads campaigns.<\/p>\n
It\u2019s important to set up conversion tracking before launching your campaigns so you can better understand your performance and make use of Google and Facebook\u2019s AI capabilities.<\/p>\n
This will allow you to use tools like Facebook custom audiences or Google Smart Campaigns to improve your ad campaigns by targeting a highly-target group of people and optimizing your bidding strategies.<\/p>\n
Another way to get the most of your campaigns is to optimize your ad budget. You can do this by focusing your ad spend on the most profitable channel and only diverting your budget to other channels when you stop seeing results.<\/p>\n
You may not have a social following right now, but if you follow the steps in this guide you can market your business while building your following as you go.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
Social media can be one of the most effective marketing channels for all kinds of businesses. The biggest social media platforms have a large audience base and make it easy to target users based on their interests and personal characteristics. While a big social media following can be beneficial, you don\u2019t need to have a […]<\/p>\n","protected":false},"author":2,"featured_media":24187,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","mc4wp_mailchimp_campaign":[]},"categories":[5],"tags":[132],"_links":{"self":[{"href":"https:\/\/www.reliablesoft.net\/wp-json\/wp\/v2\/posts\/24185"}],"collection":[{"href":"https:\/\/www.reliablesoft.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.reliablesoft.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.reliablesoft.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.reliablesoft.net\/wp-json\/wp\/v2\/comments?post=24185"}],"version-history":[{"count":10,"href":"https:\/\/www.reliablesoft.net\/wp-json\/wp\/v2\/posts\/24185\/revisions"}],"predecessor-version":[{"id":29287,"href":"https:\/\/www.reliablesoft.net\/wp-json\/wp\/v2\/posts\/24185\/revisions\/29287"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.reliablesoft.net\/wp-json\/wp\/v2\/media\/24187"}],"wp:attachment":[{"href":"https:\/\/www.reliablesoft.net\/wp-json\/wp\/v2\/media?parent=24185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.reliablesoft.net\/wp-json\/wp\/v2\/categories?post=24185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.reliablesoft.net\/wp-json\/wp\/v2\/tags?post=24185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}