Paid Advertising is booming. Paid ad spend in 2019 itself was as high as $135.9 billion. That's only meant to increase as Statista predicts a YoY growth of 11% through 2021.
Around 58% marketers consider social media advertising to be an important part of their marketing strategy. That's understandable, as 71% of customers who had a positive experience with a brand on social media are likely to recommend them.
Ideal Budget for Paid Advertising:-
A CMO survey broke down the percentage of budget spend on social channels for B2B companies: 15% to 25% of the digital marketing budget.
Most businesses spend $200 to $350 per day on social media advertisements.
But what is the ideal spend on paid advertising on social media? A ratio of 5:1 will be called a good spend. For every dollar spent on marketing, five dollars earned in sales is a good paid advertising ratio.
LinkedIn: Go-to Product for B2B Marketing:-
With 660 million professional users, LinkedIn has emerged as the go-to product for B2B marketing. With around 10 million C-level executives, LinkedIn is the preferred choice of 80% B2B marketers to generate marketing leads.
LinkedIn provides two advertising options: self-serve ads and LinkedIn partnered solutions, both very efficient. The LinkedIn self-serve ads, which come with different types of ad formats, are cost-effective starting at around $10 a day.
Paid advertising on LinkedIn differs as per the type of advertising campaign you choose. A PPC campaign may cost up to $2 to $6, depending on your budget and keyword competition. If you have a budget of $10 for five days, LinkedIn would charge you up to $60 as ads aren’t reported in real time.
The best way to optimize your agency's LinkedIn paid advertising spend is to set your goals, use concise headlines, include CTA, use high-quality images, and run A/B tests.
Facebook: The Biggest Social Channel:-
Facebook takes the biggest social channel with over 2.24 billion users, which is why it is most popular among marketers when it comes to gaining ROI. About 86% of marketers are using Facebook for their marketing efforts. How to optimize the Facebook ad spend?
The average CPC (cost per click) on Facebook in 2016 was between $0.20-$0.80. Engagement and relevance have a direct impact on your Facebook advertising costs. Higher the relevancy, lower the CPC and higher the click-through rate.
Demographics play a vital role in Facebook’s ad pricing. Analysis finds Facebook ads cost more to target the 55-64 age group than to target people between 18-24. Also, women on Facebook are costlier to target as compared to men.
Another important factor that decides your ad performance is the ad frequency. Though the frequency of an ad depends on the budget of your ad campaign, it is an important metric that offers answers to ‘why’ an ad has performed the way it has. It also helps avoid banner blindness and ad fatigue.
One might also want to look into the type of Facebook ad. An important observation is that Facebook is the most popular channel for 81% of B2B marketers to share business videos.
Twitter: Creative Emphasis:-
With 330 million users and only a handful of characters to play, Twitter puts the emphasis on creativity. Twitter is an economical social platform for advertising with 50% YoY increase in ad engagement and 14% YoY decrease in cost per engagement.
An Ad Age survey ranks Twitter as the third most popular social channel for online advertising in terms of ROI. Twitter stats for small and medium business are especially encouraging as 93% of users who are following an SMB are planning to buy from them.
Twitter ad spending depends on your campaign objective. Each campaign has a different billable action. The revenue per visitor for Twitter is $0.44 compared to Facebook, which is $0.93. The engagement rates on Twitter are quite higher at 1-3%. Though the upside of Twitter ads is that ads are in stream and are not pulled aside, the downfall is that CPM for Twitter is much higher at around $3.50 and that Twitter doesn’t release an ROI.
Your Twitter ad spend optimization begins with how creatively you generate an ad. Twitter emphasizes on unique ad texts, images and hashtags, including keywords for better interaction with the target audience.
And, Twitter rewards constant engagement.
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