It's a running joke in the marketing industry that accountants and marketers don't always see eye to eye. Marketers need money to invest in their marketing strategy, and accountants keep the finances in check. So, for both parties' benefit, let's look at how much paid social media advertisements cost. 

How Much Do Paid Social Media Advertisements Cost

There is the typical 'how long is a piece of string' question. When establishing a budget for your social media ads, it is essential to understand the bare minimums for various platforms.

LinkedIn: Minimum ad spend of £8 per day.

Facebook: Minimum ad spend of £2 per day.

Instagram: Minimum ad spend of £1 per day. 

TikTok: £50 per day per campaign when using a daily budget. £20/day when using a lifetime budget.

YouTube: This depends on ad auctions and the price you will pay for your ad to appear. This is typically $0.10 to $0.30 per view. 

Now, don't get sucked in by the low daily rates. Although £1 may look good on paper, it is unlikely to cause any real stir in the market. This means that your campaign won't cause a lot of traction online if it sticks to the minimum input, which could be a waste of budget altogether. According to Statista, the total spend on social media advertising is projected to reach $219.8 billion in 2024.

We recommend setting specific goals for your campaign's reach and engagement. Using your chosen social media platform, you can input a variety of budgets to test the predicted reach and engagement for each campaign. This will help you to manage expectations and your budget effectively.

Consider your mid, and long-term goals while understanding your current marketing expenses and deciphering your paid social advertising budget. This will ensure that you are setting up a campaign for success, not just for the hell of it. 

What Should Your Budget Cover?

Here are a few examples of things your social media advertising campaign budget should cover.

Content Creation

Regarding your budget, this needs to cover the costs of multiple facets of your social media campaign. To make waves on social media, the content needs to be at the forefront of your mind; this includes your creative assets. Your social media campaign objectives will not be met without engaging and targeted visuals, so it is crucial to invest in things like;

• Photography and images
• Video production
• Talent such as actors and models
• Production costs, including location, props and lighting
• Graphic design
• Copywriting, editing and  (possible) translation if you service multiple countries. 

In most cases, you can tackle some of the above in-house with your team, but outsourcing things like graphic design and photography is always available. 

Software

Like most strategies in the marketing industry, paid social media ads will require a tech stack, which, unfortunately, we cannot give you a real figure on expenses. This includes editing software, design software, social media monitoring tools, competitive analysis tools and analytics tools. 

Average costs for software like these will vary depending on the level of tool you require; for example, for design, many marketers tend to use their Canva (£100 a year for one person) or InDesign (£21.98/mo), which vary slightly in price so it's essential to understand your needs and experience when it comes to compiling your tech stack. 

The Campaigns

The most prominent cost of advertising comes from running a paid social media campaign. All forms of paid advertising require a budget to be put into the social media platform, which is spent when your audience clicks on an ad or engages with it in a way that aligns with your objectives. 

You must ensure that some budget is available for clicks and engagement of your ad to achieve a triumphant return on investment. 

The Benefits of Investing Marketing Budget in Social Media Advertising Campaigns

Return on Investment

To see a successful ROI (return on investment), you must see a profit on the amount invested vs the amount returned. For example, if your £256 investment into Facebook advertising resulted in £500 worth of sales, your ROI would be £244 = 95.31%. 

By scaling this investment and investing more than just the minimum ad budget, your ROI can skyrocket through generating new business opportunities and revenue for your business.

Brand Visibility

Investing in paid social media ads exposes your brand and offerings to new audiences directly in the market for products or services like yours. This is through streamlined audience targeting. 

Website Traffic

By running a paid social advertising campaign, you can focus on generating success by pointing your target audience directly to your website and keeping them there using effective, high-intent landing pages.

Learn About Your Clients

You can use the results to learn more about your target audience by running a paid social media strategy. This includes what types of promotions and assets result in the most engagement, what your social media audience looks like demographic-wise, and how your social ads perform compared to your organic posts. 

For more on the benefits of investing in paid social media advertising, see our recent blog, 'Why Use Paid Social Media?'

So, How Much Do Paid Social Media Advertisements Cost?

In true marketing fashion, the answer is: it depends. It depends on what social media platform you want to run your park's social media campaigns on, the impact you wish for them to have and the audience size you want to reach. Similarly to most things in life, the more you put in, the better results you'll get. 

A successful social media marketing strategy produces a positive ROI and contributes to helping the brand meet its goals and KPIs (keep performance indicators). As a general rule, it is recommended that your overall marketing budget should be around 8.7% of your organisation's annual revenue, with social media taking a portion of that. 

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Our Final Thoughts

Strategising paid ads on platforms like LinkedIn, Facebook, Instagram, TikTok, and YouTube requires a budget; it's as simple as that. Although the daily minimum spend may catch your eye, it's important to remember that it may mean minimum reach and, in some cases, minimum results. Investing in a diverse social media strategy that is tailored to your goals is key. These strategies encompass navigating expenses from content creation to campaign execution and software. 

Ultimately, although paid social media requires a budget, the ROI, brand visibility, website traffic and consumer insights available make investing in social media non-negotiable. 

So, if you want to take your brand to new heights, speak to one of our specialists to understand how Soar With Us can help your business unlock its true online potential.

Our savvy social media specialists utilise dynamic social strategies to unlock exponential growth for ambitious E-Commerce brands. Check out our Paid Social Media Services today!