Blog Content

Home – Blog Content

Social Media Advertising On A Budget: Cost Effective Strategies

diksha
January 15, 2025
No Comments

Understanding the cost of a social media advertisement is very important for creating a successful social media campaign. Social media can yield a high success rate but if not handled properly, the cost of advertising can hamper your ROI. Social media strategy helps in increasing the engagement rate. It also helps in building trust, enhanced tracking of the performance, etc. As this platform is becoming more competitive, and flooded with more content, and networks, an effective strategy helps in better allocation of your resources that fulfill your goals.

In this article, we’ll learn how to set a budget for social media, create cost-effective social media strategies, and factors that affect social media ad costs.

How to set a budget for social media?

Setting a budget for social media involves deciding how much you want to spend on social media, content creation, tracking the results, etc. To set a budget for social media you must decide your social media goals. For example, if your goal is to increase brand awareness then you should allocate a budget for content creation, influencer marketing, and advertising. Also, you should use appropriate KPIs to track it. If your goal is to generate leads then allocate a budget for lead-generation ads, email marketing, etc. If you want to increase website traffic then allocate a budget for social media ads, SEO promotion, and content marketing.

Apart from considering the ad cost, you must also consider the additional social media expenditures such as content creation tools, social media management tools, etc. You must also consider the cost of influencer marketing. Different types of influencers state different prices.

Ideally, you should start with a small budget and then eventually you should scale up. You must consider your social media goal and allocate resources accordingly. Also, you should adapt to every circumstance and adjust the budget accordingly.

How to create cost-effective social media strategies

You should follow these steps to create cost-effective social media strategies

Objectives: Set measurable objectives such as increasing the followers by 15% in two months, etc. Also be clear what are your goals such as increasing leads, high ROI, etc. Learn more about your target audience and which platform they use most. Select the platform where your target audience is active. Also, invest more in that platform that has previously worked well for you.
Content Strategy: Create high-quality content that resonates with your audience and builds a strong emotional bond. Use User Generated Content (UGC) for higher engagement and encourage your users to create more UGCs. Repurpose your content to increase its reach such that you can convert a blog post into a video. Als,o you can reuse your content on different platforms. You should create evergreen content that never loses its relevance and importance.
Organic Reach: Optimize your social media profile and make sure that all information is correct and up-to-date. Research relevant hashtags and use them. Engage with your users by responding to their comments, reviews, etc to build strong relationships.
Ads: Define your ad goals and objectives clearly such as increasing leads, engagement rate, etc. Use social media targeting options to reach a specific audience. Test different ad copy such as headline, image, video, etc to find which ad copy works best for your brand.
Collaborations: You can collaborate with micro-influencers who have small yet highly engaging audiences. According to the 2024 Influencer Marketing Report, 53% of users engage with influencers who align with their personal beliefs and values. Also, encourage your customers to create more UGC which also builds trust and makes users happy. You can also use customer reviews to establish credibility.
Monitor Performance: Measure important metrics such as engagement, reach, and conversion to understand social media performance. You can use tools for tracking and monitoring the performance and discovering the areas of improvement. According to the results, you can readjust your budget accordingly.

Factors that affect social media ad cost?

Here are some of the factors that affect the social media ad cost

Bidding: The type of bidding strategy such as Cost Per Click (CPC), Cost Per Thousand Impressions (CPM), etc will affect your cost. Also, the number of advertisers bidding on the same ad space and audience can increase cost.
Target Audience: The size of the audience can also affect your cost such as a larger target audience means a higher cost. Also targeting a specific demographic, interests, behavior, etc also can also increase the cost. Targeting for specific spaces and locations can also affect your ad cost.
Schedule: You can set a daily budget to control ad costs. Set a total budget for a campaign to avoid overspending. Scheduling ads for peak hours and days can increase the cost.
Ad Quality: High-quality ads such as using creative images and videos can improve performance and reduce cost. Also, ads that are relevant to your audience will lead to lower costs. Also, ads with higher engagement rates will also lead to lower costs. Ads with poor performance like low click-through rates can increase the cost. In such a case you can use optimizing strategies like A/B testing to improve the performance and thereby reduce the cost.
Seasonality: Advertising during the peak season such as holidays can increase the cost. Also, high competition will also lead to higher costs.
Platform: The average person uses 6.7 different social networks per month. Also, the number of social media users worldwide has increased by 320 million users from January 2023 to January 2024. Different social media platforms have different ad costs. Similarly different ad formats such as carousel, video, etc impact your budget differently.

Optimizing your budget is very important for increasing your ROI. You can reduce your social media marketing budget by using AI-powered content, optimizing posting schedules, using organic content, personalized marketing, community building, repurposing content, etc. These are some of the tactics by which you can reduce your social media budget. For more such information and tips, Contact Lumia 360. We have crafted several successful social media campaigns aligning with our client’s goals