How To Lower the Cost Of Social Media Advertising In 8 Steps

Success Unscrambled Podcast

One afternoon I along with my 3 friends decided to step out for lunch. On the way, Sophie asked me to stop at a new Italian restaurant. She had seen an amazing advertisement and great reviews on Instagram and finally, we had Italian that afternoon. This is the power of social media advertising. It has revolutionized the way we communicate, build relationships and find new customers. Social media advertising is a great way to reach a large audience and promote your business, but the cost of social media advertising could make a hole in your pocket. This guide provides a detailed overview of the cost of social media advertising and how you can make the most of your budget. Social Media Advertising Glossary If you're new to the game of advertising, navigating the complex language and terminology of the industry can be a huge challenge. Following is a comprehensive guide to the social media advertising glossary, to help you understand the lingo used by industry professionals and ensure that you're well-equipped to take advantage of all the different platforms. CPC (Cost-per-click) - The amount you’ll pay for ad placement when your ad is clicked PPC (Pay-per-click) - The amount you pay for the clicks your ads get, meaning you only pay when someone actually clicks your ad. CPM (Cost Per Mille) - Also known as Cost per Thousand Impressions, is an amount you pay when your ad is shown a certain number of times. CPL(Cost Per Lead) - The amount where you only pay when someone clicks on your ad and takes action, such as signing up for your newsletter or filling out a contact form. CPV (Cost-per-view) - You pay for every view generated by your ad. This means you don't have to worry about clicks or impressions, you only pay for the views that actually count. CPA (Cost Per Action) - Also known as cost per acquisition. This is the amount you pay for every user that clicks on your ad, visits your website, or even makes a purchase. CTR (Click-through rate) - The CTR is a measure of how many people are clicking on your ad. This number will vary based on the type of ad you’re running and the platform on which you’re running it. ROI (Return on investment) - ROI is the return on the money you spend, so you can determine whether your investment is worth it or not. ROAS (Return on Ad Spend) - is very focused on the return on ad spend for a specific ad campaign. It is different from ROI because it only considers the cost of the ad but excludes other fees like copywriting, graphic design, ad management etc. The formula to calculate ROAS is Revenue/Ad Spend Social Media Advertising - Budget’s Guide When it comes to social media advertising, budgeting is not only important but a challenge as well. I like to think of myself as your personal budget guide when it comes to social media advertising! To start off, the cost of social media advertising depends on the platform you're using and the type of ad you're creating. To narrow down marketing platforms for your business, you need to have clarity on the monthly budget vs the bidding options on different platforms. Before you review the average CPC and CPM on various platforms, it is advisable to set a budget and focus on tailoring your campaigns to reach the target audience more effectively. Minimum Ad Budgets For Different Social Media Platforms Facebook = $1/day for impressions, $5/day for clicks Instagram = $1/day for impressions,$5/day for clicks Linkedin = $2 /click, $10 /day Twitter = No minimum Youtube = $10/ day Pinterest = $2.00 for impressions, $0.10 for clicks TikTok = $50/day for campaigns, $20/day for ad groups Average CPC For Different Social Media Platforms Facebook = $0.97 Instagram = $3.56 Linkedin = $5.26 Twitter = $0.38 Youtube = $3.21 Pinterest = $1.50 TikTok = $1.00 Average CPM For Different Social Media Platforms per 1000 impress...