By employing this simple method of social media advertising you can gain leads and increase sales, however it does require a small investment on the part of the brand or business owner.
Whether you want to believe it or not, the truth is – Social media is no longer free and you need to pay to play.
Like everything else that becomes popular, eventually there is someone figuring out a way to profit from it. Facebook and Twitter have now jumped on the advertising profit band wagon and if you do not climb aboard your company or brand will be missing out on potential revenue.
I have noticed a significant increase in ads on my personal timeline and I expect this will only increase in the near future.
Social media marketers must change their focus to include more advertising in order to stay competitive.
This new pay to play system has created a small crisis for many social media providers because proposals and contracts offered to clients were often based upon the concept of a free market and this no longer applies. It is difficult to suddenly ask clients to fork out more cash to create a new social media advertising strategy, but there is little choice in the matter.
If the fees you are charging to your clients are too low, you cannot expect to create effective and cheap social media campaigns if you have to take it out of your own profits.
The fact is, you need to get your clients on board and in order to do so, you must create a cost effective method of advertising with a good ROI. If you show them the benefits of paid advertising they will be more likely to consider it. If after showing them the benefits and they still do not want to pay for any advertising, simply explain to them that you will not be providing them the best service you can, however, you put the choice in their hands. There is not much you can do other than continue providing services you already are.
Eventually they will come on board, they will have no choice.
With a simple method of understanding what and how to pay for each advertisement, you can provide your client with the best ROI.
An investment of ten dollars per day can be as effective as an investment of fifty if you know how to use the money more effectively. In fact, I have gotten some great results from just 2/day on some of my own personal campaigns.
It is not how much money you spend, it is how you spent it that counts.
#1. Determine how much the client should pay for advertising on social media platforms.
In my opinion, you cannot really count impressions as valuable ROI, you must count a lead to make it worthwhile. A lead is not a sale, it is only a potential sale and an impression is only the “gateway” to a lead. However, a lead is at the very least worth the investment and to be frank, you cannot gain leads without CTA or impressions.
If you spent one thousand dollars and you received 1000 impressions and 500 clicks on your last Facebook campaign, it might have cost you only 1.00 per impression, but it really cost you 20.00 per lead.
This is based on a standard which goes something like this:
Most impressions have a 50% CTR (click through rate) that converts (CTA or landing page) at roughly a 10% conversion rate.
In the above example, if you have 1000 impressions, this will = 500 clicks which in turn ends up being about 50 leads. If only half of those leads convert to sales, each person would have to purchase more than 20.00 on your website for you to make a profit. If your product is only valued at 10.00 – this is not a really good strategy for your business no matter how many impressions you get.
When creating your advertisement, you have to calculate how much you can afford to spend per lead and this will act as your base guideline for your impression and CTA goals.
In this instance, if you get at least 51 + sales at 20.00 each, it was worth the investment because you made a small profit, got 1000 impressions and the possibility of 25 future sales. Can you guarantee 51 sales with 1000 impressions with the landing page, offers and call to action you have?
#2. Get the real facts on impressions and leads from social media.
A good conversion rate is anywhere between 5-12%. To make it easier to understand I used a conversion rate of 10% in the above example.
The impression rate is really the most difficult one and the one that often confuses people into paying more than they need to for advertising.
At a confidence level of about 95% – meaning how well your landing pages converts:
If you manage to get 15000 impressions with a 50% click through rate that would equal 7500 clicks to your landing page and CTA. At a conversion rate of 10% for your CTA, that would mean you have a potential for about 750 leads and or 325 sales.
If you want to get 1000 sales, you would need to have at least 2000 leads, or 20000 click through at an impression rate of 200,000. If your impressions cost you a dollar for each one, you are talking huge amounts of money to invest.
#3. Learn proper methods for advertising with social media.
If you know what the baseline for what it will cost you per lead and what people will have to purchase on your site in order for you to make a profit, you can begin to determine how much you need to pay per impression and if it is even worthwhile doing so.
In the above example a sale must be equal to at least 20.00 for the client to make a profit, however, if your product is way more valuable and sells for 100.00 you can use this flexibility to create a variety of ads to see which ones work better.
If you have 80.00 to negotiate with on every sale , you could easily pay more per impression to guarantee targeted sales or pay less per impression and try to reach as many people organically as you can. In the case of a client who does not have a great deal to spend it is a much more practical idea to take ten dollars and spread it over 3 campaigns than to invest in only one because if you find a huge successful campaign that ends up only costing a dime per impression, you have found a gold mine for that client. It is highly unlikely that an investment of ten dollars will amount to a sale, but it will provide visibility and this is worthwhile for small clients who have no other resources.
When you have decided how much to spend on each impression, use a variety of target advertisements to determine what is the best one to get the most out of your impressions and when you see one target or campaign works better than another, simply increase that one and lesson one that isn’t working. There is no better formula for success than split testing advertisements on a variety of platforms because what works for one client on Facebook may work better for another on Twitter.
Stayed tuned for part two of this article how to spread advertising dollars over a number of platforms coming soon!