LHM Strategic- Digital and Social Media Agency

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Social media has become a vital part of most businesses marketing efforts, but are you getting the most out your social media plan? Budgeting for social media is key to a successful social marketing plan. Whether you’re a large or small business, anyone can benefit from setting a budget aimed to give a return on your investment (ROI).

Several components make up a social media budget, such as tracking costs, developing goals for your platforms, and determining what content to post. It’s best to have a specific budget in mind when considering these things.

Identifying Your Social Media Budget

Know what you are budgeting for. – What are your goals and objectives? Do you want to drive website traffic, generate leads, make sales? Setting your goals not only helps you track the success of your social media marketing efforts, it helps determine how to set your budget.

Determine how much you’re willing to spend. – What percentage of the budget will be devoted to social media? This is an extremely important part of planning for social media marketing. Time is money so how much “time” are you willing to invest in the efforts? Do you need to hire additional help? Who implement your social media marketing strategy? Will you use organic marketing tactics and paid social? This should help inform your budget.

Ask yourself:

According to WebStrategies, a company spends about 5-15% of annual revenue on marketing, and of the total marketing budget approximately 35-45% should be spent on digital marketing.

Keeping this is mind, your overall marketing goals should play a major factor in what is being put toward this budget. 

Determine what will resonate with your audience. – Static images are cheaper than video content. However, a business is more likely to reach their target audience more effectively with video content versus static images. Video content tends to be more expensive but can be used across several different platforms. 

When breaking down the overall cost of your social marketing strategy, try thinking in terms of what is really involved in getting the most out of your social media. Even if you do not outsource your content creation, you still will be coming up with strategy, writing the copy, managing the posting, and tracking process. 

Your Social Media budget should be broken down into a few different categories: 

Once you have factored in the above and determined the budget, you are ready to start planning your social media marketing efforts.

Having a set budget helps keep you and your team organized, and your planning realistic. Having a clear understanding of your social budget helps guide marketing success. A common misconception of social media marketing is that it is free. Just like all other marketing and communications tactics it takes time and an intentional investment. Looking to get started on your plan? LHM Strategic can help. Contact us today for a free consultation.

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