From the recent social media stats of 2023, it is clear that there are more than 3.78 billion social media users across the world. Several estimates state that the total number of social media users will prosper in the following years. Due to the active customers, many businesses are currently using various types of social media marketing plans. For example, social recruiting has become increasingly popular in recent years, which you can read more about at https://www.careerarc.com/social-recruiting/what-is-social-recruiting/.
From large tech businesses to startups of numerous sectors, everyone maintains social media pages. However, there are still some companies who are in a dilemma about how much money they should spend on the social media marketing plan. If you are also stuck in the same problem, we are here to help you out.
How Much Money Should You Allocate As Your Social Media Budget?
Generally speaking, there is no universal rule for how much to spend on the social media marketing plan. But, there are a few guidelines and criteria which are supported by numerous polls and research. For example, it is necessary to specify the total digital marketing budget for determining how much to spend on social media marketing.
As there is no common budget for social media marketing, the amount of money one company spends on social networks tends to vary from others. Several businesses spend nearly 15% to 25% of the digital marketing budget on social media marketing plans (includes both organic and paid).
In another analysis performed by The Content Factory, an average company pays between $200 to $350 every day for social media marketing. This calculates for about $6,000 to $10,500 per month and $72,000 to $126,000 every year. However, keep in mind that the total money spent by businesses on social marketing plans is different.
In another research, Deloitte’s CMO Survey discloses that, on average, many corporations use approximately 13 % of their marketing allowances for social media marketing. For example, if the total marketing budget is $350,000, they will allocate $45,500 for social marketing plans. In short, it is better to determine how much money to spend on the social media marketing plan based on your company’s revenue, total social media platforms used, and many others.
What Factors Affect The Social Media Marketing Budget?
There are several factors that influence the budget allocation for social media marketing. Due to that, sometimes you might spend less or more than the finalized amount. Here are the primary aspects that affect the social media marketing budget:
Size of your business
Corporations with more workers tend to spend less money compared to firms with fewer employees. It is because the big organizations already have more brand identity and fame, so they would not have to use more budget.
Type of industry sector
Depending on the sector, some companies are likely to allocate more budget on the social media marketing plan. For instance, retail companies spend more money than IT firms on social media.
Particular business objectives
Based on the specific goals, the budget allocation for social media marketing varies from one company to the other. Some of those particular objectives include establishing brand awareness, boosting sales, improving customer engagement, and many more.
Types of social media advertising
Based on the type of social media advertisements you choose, the budget will differ. There are plenty of social media ad choices, such as Facebook Ads, Instagram Ads, Twitter Ads, paid agreements with social media celebs, and more.
Usage of software
Software and applicable tools (SEO keywords, hosting, content editing tools, and more) will also influence the budget of the social media marketing plan.
How To Allocate Money To Various Elements Of Social Media Marketing Plan?
Instant-Famous.com can help you with your social media marketing plan. In addition to that, it offers different types of social media services on various platforms and increases your social network. Depending on their specific necessities and potential customer engagement, several companies will allot money to numerous aspects of the social media marketing plan. However, below we have mentioned a universal strategy that fits almost all company’s needs.
Photos, Videos, And Graphic Content
It is best to spend 40% of the total social media marketing budget to create:
- Cover photos for all your company’s social profiles
- Logo for your business
- Photos for blog content and social media posts
- Videos for sharing on social networks
You can spend another 40% of the social media budget on brand advertisements across various social media platforms. Facebook ads have a high click rate, followed by Instagram ads.
Social media management and Analytics
It is better to allocate 10% of the budget to social media managing tools. Finally, you can spend the rest of the 10% social media marketing budget on analytics.
Social Media Marketing Budget Stats
Here are some recent statistics related to the budget of the social media marketing plans.
As per the results of the CMO Survey of February 2023, the total % of whole marketing budget companies plan to use for social media marketing in the following year is mentioned below:
- B2B Products – 14.7% on social media marketing
- B2B Services – 18.3% on social media marketing
- B2C Products – 21.8% on social media marketing
- B2C Services – 18.7% on social media marketing
In the same study by the CMO Survey, it is revealed that the total amount of budget for social media marketing plan differs from one sector to the other:
- The consumer service sector allocates 28.5% of the total marketing budget on the social media marketing plan.
- Communications and media industries use 25.6% of the marketing budget for the social media marketing plan.
- Banking and finance businesses tend to give an 11.7% budget to the social media marketing plan from the whole marketing budget.
From the above information, it is quite clear that you need to consider a lot of factors while deciding on the budget of the social media marketing plan for your business. However, keep in mind the above-mentioned points, and you can easily determine how much money to spend on the marketing plan for social media platforms.