Determining the ROI and value of social media marketing can be tricky. There are many “soft” factors that go into this metric, including new subscribers, new product discoveries, exposure, and connecting with new people. While those factors are tough to quantify, conversions are not. Publishing great content, whether people immediately sign up for anything (a product, newsletter, sample, etc.) ultimately is good for your brand. It gives you credibility in the marketplace and encourages people to interact with you. However, because measuring ROI is difficult and because there’s a variety of factors determining the ultimate cost, it can be difficult to figure how much you should spend on social media. Ultimately how much you spend also determines how much you can make.
Cost Drivers in Social Media Marketing
First, the size of your business and your growth goals go into figuring out this cost. Also take into consideration the size and experience of the marketing company you hire. The trickier piece is based on the services you’re paying for.
Within social media, there are many channels, each with their own unique ways of getting your message out. Let’s look at Twitter for example. If you’re not on Twitter and want to be, you can expect to pay between $2,000 and $4,000/month. On the other hand, if you’re looking for help taking your Twitter presence to the next level, costs range from $1,000 to $2,500/ month. Getting noticed on Twitter is all about hashtags. Working with a marketing company who knows how to take hashtags to a viral level is definitely worth the expense if Twitter is part of your social media strategy.
Facebook is probably the biggest name in social media with thousands of new users weekly and a seemingly endless audience. So, it shouldn’t surprise you that Facebook marketing also costs more than Twitter. To start a business Facebook page from scratch and provide basic management costs between $2,500 and $5,000/month on average. And that’s before the cost of any sponsored advertising.
Other social media channels such as Instagram, LinkedIn, Pinterest and SnapChat have a smaller ROI, but depending who you’re trying to reach can also be quite beneficial as part of your overall social media strategy. Be aware, they can also cost about $1,000 more for each one. Choose wisely based on your audience and target market.
How to Save Money on Social Media Marketing
One of the easiest ways to reduce the cost of your social media marketing is to bundle several channels together. The custom graphics, content creation, etc. can be adapted and reused, making it more cost-effective to outsource two or three social media channels. We’ve got some suggestions on how to set up a budget system to help you get started.