Cost-Benefit Analysis of Social Media Marketing

Hand holding social media note with social media concepts

More businesses are using social media sites to meet their marketing objectives. At least 44 percent tap them to build brand awareness while 41 percent rely on them to drive revenue.

Regardless of your goal, social media advertising comes with a cost, and with costs come figuring out the budget and whether the efforts are even necessary. Read this guide to find out.

How much does it cost to do social media marketing?

Social media marketing doesn’t have to be very pricey. If you’re focusing on getting organic traffic, then you can implement a marketing strategy on LinkedIn. You can post valuable content that readers and fellow users can share on their own social media pages. This way, you can get free marketing and increase your chances of becoming more authoritative in your niche.

What’s the conversion rate for social media?

Considering you’re spending money on social media, it pays to know the conversion rate. There’s no exact conversion rate since it all depends on your desired results. But compared to other online marketing strategies, social media, unfortunately, seems to underperform. It has a much lower conversion than search and fares worse when compared to that of email marketing.

If social media has a poor conversion rate, why should you do it?

The biggest contribution of social media to your marketing efforts is in referral traffic. There are billions of social media users worldwide. Before a business can deal with conversion, it needs to build leads and that’s what social media sites can give.

How do you make social media marketing more cost-effective?

B2B marketing specialist recommends the following:

  • Create strong social media ads and content to raise awareness and boost traffic.
  • Direct the traffic to an opt-in page to build your mailing list.
  • Promote your social media sites in your emails.
  • Provide high-quality, unique content that encourages both email and social media users to share it.

The success of your business greatly depends on marketing strategies you use. Consider adding social media marketing to your business development plan for next year.