According to a study by The Content Factory1, companies spend on average $200 to $350 every day on social media advertising. Additional data stemming from a CMO study by Deloitte2 reveals that on average, companies dedicate about 13% of their marketing budget to social media.
What determines the cost of your digital campaigns?
Even though the following information should provide you with an idea of how much you should be spending on your social media bid strategies, you should keep their context in mind. Here are a few factors that can increase or decrease the cost of your ads on social media:- The season
- The day of the week and at what time the ad is displayed
- Your target audience and demographic data
- The geographic area
- The relevance and overall quality of your ads
- Your industry
- The platform selected
- Your goals and overall digital strategy
Why you should advertise on social media?
Before going any further, you should first and foremost explore the benefits of investing in social media marketing. Do you really need to dedicate part of your advertising budget to Facebook, Instagram, and other social media platforms? Yes, absolutely! In essence, advertising on social media will allow you to:- Connect with your target audience and increase engagement
- Reach a wider audience and strengthen your brand reputation
- Increase traffic to your website
- Generate more leads and increase sales
- Collect valuable data from social media followers to perfect your future campaigns
What’s the minimum amount you should invest in social media?
Depending on your platform and objectives, we recommend dedicating at least $300 to $900 every month to advertising on social media. This comes out to about $10 to $30 per day until you determine your average cost per lead. The answer to “how much does advertising on social media cost?” depends on you, your company, your ads, and your business goals. With effective ads, you might be spending as little as $50 per month for a slight increase in the number of visits to your website, engagements, signs up, or leads. That could be a satisfactory outcome for a brand awareness goal but if your objective is to generate new leads or increase engagement, you’ll probably need to invest a bit more. In general, paid advertisement is a long-term investment that is more effective when paired with organic content and an optimization of your budgets and audience targeting. The following is the lowest daily amount you can spend on various social media platforms:LinkedIn: $10 per day Facebook: $1 per day Instagram: $1 per day YouTube: $10 per day Twitter: No minimum amount Pinterest: $2 per day TikTok: $50 per day Snapchat: $5 per day
The cost of advertising on LinkedIn
As the most popular social media platform for professionals – with more than 830 million members – LinkedIn is useful for generating leads for the purposes of B2B communications and for organizations looking to recruit top talent. What is the average cost of advertising with bid strategies?Cost per click (CPC): $2 Cost per thousand impressions/cost per mile (CPM): $7.19 Cost per send (CPS): $0.80 Cost per open (CPO): $1.70
What does this mean for your minimum media budget on LinkedIn? You’ll need to invest at least $10 per day to launch your campaign on this platform.The cost of advertising on Facebook
Facebook is one of the most popular platforms with advertisers thanks to its 1.4 billion active daily users. Launching your digital campaigns on Facebook could be a sure-fire way to help your business expand. What is the average cost of advertising with bid strategies? Most companies use the “cost per click” metric for their advertising strategies on Facebook. Even though you can use other bid strategies, the CPC is the most effective way of reaching your objectives.Average cost per action (CPA): $5.74 Average cost per click (CPC): $0.97 Average cost per thousand impressions/cost per mile (CPM): $7.19 Cost per like (CPL): $1.07
What does this mean for your minimum media budget on Facebook?$1 per day for impressions $5 per day for interactions $40 per day for installing applications or claiming offers
The cost of advertising on Instagram
With more than 500 million active daily users and a rate of engagement higher than Facebook, Instagram is a relatively new way for companies to reach consumers. But this competitive advantage comes with higher costs. What is the average cost of advertising with bid strategies?Average cost per click (CPC): $3.56 Cost per thousand impressions/cost per mile (CPM): $7.91 Cost per action (CPA): $5.74 Cost per like (CPL): $1.07
What does this mean for your minimum media budget on Instagram? The minimum budget is identical to Facebook because both use the same ads manager.$1 per day for impressions $5 per day for interactions $40 per day for installing applications or claiming offers
The cost of advertising on YouTube
Every day, more than 1 billion hours of video are watched on YouTube. This platform’s popularity has helped companies embrace a new way of reaching consumers, specifically those aged from 18 to 34 – the age group that uses YouTube the most. What does this mean for your minimum media budget on YouTube? You need to invest at least $10 per day. What is the average cost of advertising with bid strategies? YouTube is owned by Google. Consult Google Ads for more information.Cost per view (CPV): $0.10 to $0.30 per view Cost per thousand impressions/cost per mile (CPM): $9.68
The cost of advertising on Twitter
Although it has fewer users than Facebook and LinkedIn, Twitter still has more than 255 million users. That’s why many companies decide to advertise on Twitter. What is the average cost of advertising with bid strategies?Cost per click (CPC): $0.38 Cost per thousand impressions/cost per mile (CPM): $6.46 Cost per engagement (CPE): $1.50 Cost per follower (CPF): $2.50 Cost per download (CPD): $3.25
Even though the CPC is a solid metric for companies that advertise on Twitter, the CPE can also be quite useful. The strength of your advertising campaign can be tied to the number of people who interact with your ad and company (by commenting or retweeting). What does this mean for your minimum media budget on Twitter? No minimum budget is required.The cost of advertising on Pinterest
A quarter of a billion people use Pinterest every month. This is a platform that is especially relevant for B2C companies, enabling them to leverage a unique way to reach and engage with their target market. This however comes at a higher cost. What is the average cost of advertising with bid strategies?Cost per click (CPC): $0.15 Cost per thousand impressions/cost per mile (CPM): $7.50
Because of the high average cost of generating impressions, the CPC is a more effective tool on this platform. You’ll make sure that users interact with your ad and notice your pins which may include a product, blog article, or any other feature. What does this mean for your minimum media budget on Pinterest? A minimum budget of $2 per day is required for advertising impressions.The cost of advertising on TikTok
TikTok is the new kid on the block in terms of popular social media networks thanks to its short, engaging videos. According to its parent company Bytedance, TikTok currently has 1 billion active users every month. What is the minimum budget required to advertise on TikTok? TikTok is the best social media platform to generate engagement. That being said, it’s also the reason why it’s significantly more expensive to advertise on TikTok than on Facebook or Instagram.Brand takeover: $50,000 per day In-feed: $10 per impression + $500 minimum investment Hashtag challenge: $150,000 per week Branded filter/lenses: $80,000 per day
The cost of advertising on Snapchat
With more than 332 million daily active users and 10 billion videos watched every day, Snapchat’s users are extremely engaged. The only advertising format available to companies on Snapchat is through the geofilter, which can also be created by municipalities, universities, and other public sites for free. If you want another option, you will have to work directly with Snapchat or one of its partners. What is the minimum budget required for advertising on Snapchat? Through the ads manager: at least $5 a day to advertise on SnapchatSnap Ads: $3,000 per month Sponsored Lenses: $450,000 to $700,000 per day Snapchat Discover: $50,000 per day
Is advertising on social media worth the investment?
Yes, yes, and yes! Even though the cost of advertising on social media may vary significantly from platform to platform, it’s a way to directly connect brands to consumers and stimulate sales. Monitoring where web traffic comes from reveals that many buyers are influenced by social media marketing strategies. You should also take into account the costs associated with managing digital campaigns. Why? Because more companies investing in social media means these platforms are becoming more competitive. That’s why countless companies have teamed up with a marketing agency to develop, manage, and oversee their advertising strategies.
Solocom helps social media managers optimize their digital performance! Want to maximize your digital performance? Contact our team today.
1 Source: The Content Factory
2 Soucce: Deloitte CMO
