Soar through your sales goals with a strategic social media budget
Trust us when we say you’re not the first marketer to sit and shake your head when trying to figure out how much to spend on your social media ads. Pulling dollar amounts out of thin air is a daunting task and often ineffective. We’re ready to share our secrets with you on how to generate a budget that delivers the results your sales team wants.
Where do I begin?
Start by setting goals. Where are you sending your audience? And ask yourself what you want them to do once they get there. The target could be to get viewers to read a blog or to download an e-book. Regardless, take a step back and make sure that goal is clear to ensure your money is well spent. You don’t want your goal to be for prospects to fill out a form, but have the form hidden in the bottom corner of your landing page.
Once you have a clear goal in mind, and the journey to get from point A (your social post) to point B (your goal) is as direct as possible, you’re ready to take your strategy to the next step.
But before we start talking dollars, there’s a little more to consider
You need to understand your organization’s click-through-rate (CTR) to fully grasp how much bang you’ll get for your buck. Start by tracking your CTR for previous campaigns you’ve run to learn how your ads are performing currently. Ask yourself: Is it above or below your industry’s benchmarks? Are you hitting your click-through goals? Take the time to fully comprehend where you are now and where you want to go.
Now, let’s take a look at your organization’s sales close rate. If you don’t know this, it’s crucial to reach out to your sales team and obtain this information (it’s vital for our next step!). Check out these sales close rate industry benchmarks from, HubSpot.
Interested in more ways to get the most out of your marketing budget?
Check out this blog on 7 budget-killing Facebook ad mistakes.
Turning your knowledge into results
Once you know your average CTR, close rate, and goal, you’re ready for this next step. First, let’s take a look at your goal: How many sales do you want to close on through this campaign?
With that in mind, begin to work backward. Assuming the cost per person reached is $0.01, calculate how many people your budget will reach.
Take the number of people you will reach with an estimated budget and calculate how many link clicks you will receive using your average CTR.
Using the average conversion rate of 2%, calculate how many people that click through to your website will convert.
From there, use the number of estimated conversions and multiply by your average sales close rate to find the number of people that will close on a sale using your estimated budget.
Here is what we found for one client with an average campaign spend of $790:
With that budget, this client should close on one sale through this campaign.
Your targeting parameters matter, too
We recommend keeping an eye on your ads throughout the campaign. That way, if you notice that they aren’t performing as you anticipated, you can make adjustments to your parameters. Keep in mind that the equation can’t be effective if you aren’t reaching the right people.
Budget: You get what you put in
By using this formula, you’ll be able to set your ads up for success and have solid ground for how you came up with the dollar amount you did and why you need it when requesting the funding from leadership. To learn more about our math of marketing, download our e-book here.
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