How to Budget for Social Media Campaigns

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Budget: Every marketer's favorite and least favorite word. Your budget is the foundation of your social media campaigns, and the key to strategic, effective social media development. Download the guide to learn how to set your social media campaigns up for success through strategic budgeting and resource allocation.

How to Budget for Social Media Campaigns

  1. 1. © 2009-14 CafeGive, All Rights Reserved. //////////////////////////////////// /////////////////////////////////////////////////////////////// BUDGETBUDGETBUDGET SOCIAL MEDIA CAMPAIGNS SOCIAL MEDIA CAMPAIGNS SOCIAL MEDIA CAMPAIGNS for how to $$$ Share this guide! www.cafegive.com
  2. 2. © 2009-14 CafeGive, All Rights Reserved.22 © 2009-14 CafeGive, All Rights Reserved. Every marketer’s favorite and least favorite word. Your annual marketing budget is the key to doing your job effectively by staying on schedule, keeping ahead of the curve, developing tactics, and spending only where it counts. Part roadmap, part script outline, part playbook, the budget is the marketing department’s best friend, setting the stage for unforgettable campaigns and helping you prove ROI well into the future. The big problem with marketing budgets? Creating them. $ BUDGET.
  3. 3. © 2009-14 CafeGive, All Rights Reserved.3 It’s time to get serious about next year’s budget. Maybe you’re deep into the process; maybe you haven’t begun to think about it. In either case, chances are your mind is filled with questions about the year ahead, not the least of which is social media. Right now, there are a multitude of different digital media channels to promote and communicate your brand’s message. By next year, that number will only increase, and the role of social media will grow even greater. On platforms like Facebook, Pinterest, Twitter, Instagram, and YouTube, marketers are achieving successes and encountering challenges heretofore unknown to the field. - HOW TO BUDGET for Social Media Campaigns - ???
  4. 4. © 2009-14 CafeGive, All Rights Reserved.4 The industry at large agrees that social media is the future of marketing, but planning for it raises a number of seemingly unanswerable questions: “Should we delegate social media responsibility?” “What platforms should we focus on?” “How often should we post?” “How many campaigns should we run?” “Who creates the content?” “Should we hire a firm, or do it in house?” “What technological changes are coming?” And, above all else: - HOW TO BUDGET for Social Media Campaigns - “How do we budget for social media and social media campaigns?” “How do we measure goals for all of this?” and
  5. 5. © 2009-14 CafeGive, All Rights Reserved.5 At CafeGive, we’re here to help you navigate the next year of social media, plan, and budget properly. In this guide, we’ll be focusing on a digital strategy centered on regular social media campaigns throughout the year. Read on for our considerations on budgeting social media campaigns this year and beyond. - HOW TO BUDGET for Social Media Campaigns -
  6. 6. 6 1. OVERALL Digital Budget Considerations In 2013, social media accounts for ten percent of the average digital marketing budget, and only three percent of the overall budget. That may not seem like much, especially considering your ad budget is most likely between one tenth and one quarter of your entire budget, but don’t let its size fool you: Social media is quickly becoming one of the most effective marketing strategies today. http://technorati.com/business/article/technorati-medias-2013-digital-influence-report/ 6 © 2009-14 CafeGive, All Rights Reserved.
  7. 7. © 2009-14 CafeGive, All Rights Reserved.7 For digitally active brands, especially small ones, social media vastly outpaces other forms of media in lead generation and customer conversion. And for marketing teams of one to five employees, social media is responsible for nineteen percent of lead generation spend, with SEO and email marketing following at sixteen and twelve percent respectively. That number will only increase in the years to come. Social media activity is now a key determinant in SEO algorithms; The more socially active you are, the higher you’ll appear in search. Social media is proving more effective than pay-per-click (PPC), for both B2C and B2B companies alike. - 1. OVERALL Digital Budget Considerations - 2013 Digital Influencer Report 19% of lead generation spend FOR MARKETING TEAMS OF ONE TO FIVE EMPLOYEES, SOCIAL MEDIA IS RESPONSIBLE FOR:
  8. 8. © 2009-14 CafeGive, All Rights Reserved.8 • Advertising • Display • PPC • Mobile • Content • Writing • Graphic design • Video production • Audio/recording • SEO • Technology • Agency/consulting • Social media • Listening/research • Social ads • Promotions - 1. OVERALL Digital Budget Considerations - That said, we still recommend a multichannel approach when it comes to digital budget planning. Banner ads, PPC, and SEO will get your message seen by people who may not be active on social media, and all continue to play a key role in customer conversion online. The key is to avoid overspending on digital by setting two types of allowance: a baseline monthly digital budget and a quarterly campaign-based budget, then breaking those amounts into activities and ad buys in several main categories:
  9. 9. © 2009-14 CafeGive, All Rights Reserved.9 “So, how much am I spending?” There is no such thing as an average marketing budget, and putting a digitalbudget into numbers can be even trickier.Whetheryou have $10 million or$10,000 to spend on marketing onyourhands, the keyis to approach the question using ratios.The recommendations beloware givenwith a medium-sized business in mind. Lateron in this guide,we’lladdress the question ofsize—specifically, howthese ratios change as businesses decrease and increase in revenue. Ifyou’re like most marketing departments,you’ll probablywant to set aside anywhere between twenty-five and forty-five percent ofyour budget foradvertising.Afterthat,you’llneed to budget forcontent—not just its creation, but optimization, distribution, and analysis:Another thirtyto fortypercent ofyourbudget.Then comes SEO,yet anothertwentyto thirtypercent ofyourbudget.Which leaves uswith, again, around ten percent forsocialmedia. 25-45% 30-40% 20-30% 10% MARKETING BUDGET Social Media SEO Advertising Content - 1. OVERALL Digital Budget Considerations -
  10. 10. 10 Butwhat about public relations, brand development, and market research? That’swheresocialmediacomesin.Thoughyou’llprobably spend the smallest portion ofyourbudget on socialmedia,whatyour brand does on Facebook,Twitter, Pinterest, and othersocialplatforms governs the direction ofthe rest ofyourdigitalstrategy. - 1. OVERALL Digital Budget Considerations - © 2009-14 CafeGive, All Rights Reserved.
  11. 11. 11 © 2009-14 CafeGive, All Rights Reserved. If you haven’t developed an overall social media strategy, this is the time to start. A proper strategy informs not only the return you aim to achieve from social media, but the intended audience, content goals, frequency of engagement, style template, internal best practices, and overall organizational investment in social media. You may want to look within for expertise or hire a social media consultant or firm to help determine your social media needs and capabilities. 2. SOCIAL MEDIA is the Lifeblood of Digital
  12. 12. © 2009-14 CafeGive, All Rights Reserved.12 Your strategy depends on your industry and customer base. Social media is not only useful for distributing marketing content, but inspiring and improving it. The insights you gain from an active social media presence will influence the types of blog posts, videos, and graphics you create: - 2. SOCIAL MEDIA Is the Lifeblood of Digital - The Social Media/ Content Loop Share this guide!
  13. 13. If you’re feeling uncertain about what kind of content you create, where you post it, and how often; take a look at your customers’ needs and your competitors’ strategies, and find the opportunity therein. For example, a jewelry retailer with a large variety of stock may find a wide audience on Instagram or Pinterest, where large catalogs of photos stand out. A watch repair shop, on the other hand, may have better success on Yelp or LinkedIn, both of which thrive on customer reviews and recommendations. In either one of these cases, the content and community goals follow business goals. Though the watch repair shop and the jewelry store exist in adjacent industries, lead generation and customer acquisition happen in radically different ways. - 2. SOCIAL MEDIA Is the Lifeblood of Digital -
  14. 14. © 2009-14 CafeGive, All Rights Reserved.14 In other words, to quote an old adage, “the medium is the message.” You’ll need to find the platform or mix of platforms that delivers the highest return for your communication style. Unsure about what each platform is best suited for? - 2. SOCIAL MEDIA Is the Lifeblood of Digital - Facebook • Community building and engagement • Celebrating company milestones • Promotions • Contests • Fundraising Twitter • News and press • One-on-one conversations • Customer support YouTube • Guides and how-to videos • General advertising • Viral marketing Google+ • SEO • QA’s • Customer acquisition Pinterest • Brand awareness • Showcasing products • Consumer research LinkedIn • Networking and relationship building • Targeted lead generation • B2B marketing • Long-form content promotion Instagram • Building buzz • Going behind the scenes • Storytelling through pictures Tumblr • Blogging • Trend hunting • Connecting with specific customer segments
  15. 15. © 2009-14 CafeGive, All Rights Reserved.15 Finding the Right Ratio As a small business, your marketing budget and resources may not be able to encompass every aspect of digital marketing. In this case, social media is crucial. The less you have to spend, the more you should invest in a social media presence and content development. Without enough spending power, ads and SEO efforts will prove largely ineffective—you simply can’t compete with bigger brands on a raw financial level in these areas. Social Media + Content Social Media + Content Social Media + Content Ads + SEO Ads + SEO Ads + SEO - 2. SOCIAL MEDIA Is the Lifeblood of Digital - DON’T NEGLECT FACEBOOK However you choose to divide your social marketing efforts, your brand needs an active Facebook page. Period. Facebook is the social media standard, with over 1.4 billion users— that’s 11% of the Earth’s population. While it won’t necessarily be at the head of your campaigning, Facebook is the best platform to engage your existing community and catalog all of your social media efforts in one place. Facebook is also a key advertising destination. In fact, the average social media advertising budget breaks down as follows: • 57% – Facebook Ads • 13% – YouTube Ads • 13% – Twitter Ads • 2% – Pinterest Ads • 15% – other FOR SMALL BUSINESSES WITH LIMITED BUDGETS:
  16. 16. © 2009-14 CafeGive, All Rights Reserved.16 Instead, devote the majority of your budget to social media and content, where the playing field depends less on money spent and more on fan and follower engagement. Focus on your community, and you’ll discover the power of the crowd to amplify your message and motivate more involvement with your brand. For businesses whose annual revenue falls below $500,000, we recommend lowering advertising and SEO spending to around twenty percent each, and increasing social media and content development to twenty and forty percent respectively. For businesses making less than $100,000 a year, we recommend leaning into social and content as much as possible—you may even want to pursue a 60/40% content/social media ratio. - 2. SOCIAL MEDIA Is the Lifeblood of Digital - 20% SOCIAL 40% SOCIAL 40% CONTENT 60% CONTENT 20% SEO 20%ADS $500K REVENUE $100K REVENUE
  17. 17. © 2009-14 CafeGive, All Rights Reserved.17 Large companies and organizations can’t afford to ignore social either, however. Even if your marketing department handles a multi- million dollar brand, social media spending needs to remain a priority. Big brands have more opportunities to create compelling content with professional filmmakers, writers, actors, and artists; and social media remains just as valid a communication channel to promote this content. Never spend less than five percent of your budget on social media, or you may end up not just missing out on the lucrative market segments who are socially active, but losing control of your brand. On social media, the conversation is what determines winners and losers. The only way you can lose is to refuse to participate. - 2. SOCIAL MEDIA Is the Lifeblood of Digital - NEVER LESSTHAN 5%
  18. 18. © 2009-14 CafeGive, All Rights Reserved.18 Once your strategy is in place and your social profiles are created, you’ll need to assign staff and/or outside talent to the following responsibilities: • Campaign planning • Content creation/facilitation (for blog posts, articles, interviews, infographics, as well as video and audio editing) • Community management • Research, monitoring, and reporting on performance Your social team will need to stay in close communication with your web developer, SEO manager, and marketing and sales staff. All in all, small businesses and nonprofits should budget for the equivalent of one at least full-time social media staff person. If you can’t dedicate a staff member to social media completely, it’s likely that you’ll need support from a contractor or intern. - 2. SOCIAL MEDIA Is the Lifeblood of Digital - - Campaign planning - Content creation/facilitation - Community management - Research, monitoring, and reporting
  19. 19. 19 © 2009-14 CafeGive, All Rights Reserved. While consistent, daily conversations are essential for any social media presence, the only way to draw in more followers and attain real, measurable results is through frequent social campaigns. 3. CAMPAIGNS Go Front and Center CAMPAIGN
  20. 20. © 2009-14 CafeGive, All Rights Reserved.20 Social media campaigns give you the chance to energize your audience by taking the knowledge and connections you’ve acquired from daily posting, and using them in support of a goal. Campaigns are storytelling opportunities, and for members of your social community, they’re a time to get excited by and involved with your brand. Want your supporters to attend an event, take advantage of a product deal, share a picture or video, participate in a contest, or raise money for a project or cause? Incorporate that action into a campaign, and use the power of social networking to extend your reach, virally. Campaigns direct content and messaging needs, saving you time and synchronizing communication on disparate platforms. - 3. CAMPAIGNS Go Front and Center -
  21. 21. © 2009-14 CafeGive, All Rights Reserved.21 Beyond standard PR buzz, however, social media campaigns also present internal benefits for your organization. From executives to administrative supporters, employees of every level can get involved in a social media campaign, interacting with customers and constituents, and sharing links with personal networks. Campaigns require team-wide cooperation and showcase all kinds of employee skill, be it communication or community leadership. Finally, campaigns are the perfect opportunities to collect data on social media efficacy. Each campaign is an indicative slice of your overall social media strategy, providing insight into statistics like fan/follower engagement, reach, clicks, and digital conversion rate. How many campaigns you decide to annually run depends on the size of your marketing team and overall budget. We recommend four per year— one each quarter—at minimum, but encourage you to plan up to twelve major social media campaigns for anywhere between two and four weeks at a time. - 3. CAMPAIGNS Go Front and Center -
  22. 22. © 2009-14 CafeGive, All Rights Reserved.22 Tracking and Controlling Your Spending Campaigns provide an excellent method to track your spending and frame costs in service of marketing goals. Not all campaigns are created equal however, and some may cost more than initially anticipated, leaving you with fewer resources to fund the next one. When initially budgeting for campaigns, think carefully about what will be required for each. Leave your department enough room to learn and experiment with each campaign, and use each piece of content as a stepping stone for the next. As you determine which members of your social audience most engage with and amplify your message, reaching out to those fans and followers will become easier, leading to continual campaign improvement. Campaign apps are another great way to make sure your campaigns stay within budget limitations. CafeGive Social’s own subscription-based services combine full range of social media campaign options with the flexibility and customization options to run campaigns on your terms and schedule. You’ll find more about our apps and services under the Tools section of this guide, and at cafegive.com/apps. - 3. CAMPAIGNS Go Front and Center -
  23. 23. 23 © 2009-14 CafeGive, All Rights Reserved. Cause marketing is the new general marketing, and corporate social responsibility (CSR) is now mandatory. As we detailed in “How to Step Up Your CSR,” the only organizations that will stay in business and thrive in the coming years are those that are serious about their social and environmental commitment. And that means communicating it—integrating information about giving back in every marketing message. 4. INVEST in Cause Marketing and CSR Development
  24. 24. © 2009-14 CafeGive, All Rights Reserved.24 Cause marketing is the number one driver of brand preference, most notably among millennials, whose actions and purchasing decisions will shape the future of branding and marketing communications. Cause marketing and CSR can’t simply be a component of your budget; Your cause-related efforts should be the centerpiece of your social media marketing strategy. Consider the facts: • 91% of global consumers want to hear more about CSR efforts • 75% want to engage with brands around CSR efforts • 62% already engage with brands on social media about CSR efforts Social media is the fastest, widest-reaching, and most cost-effective method to reach these cause-minded consumers. With over 600 million people active daily on Facebook alone, brands who don’t engage their social communities with CSR messaging are missing out on a crucial market segment. 2013 Cone Communications/Echo Global CSR Study - 4. INVEST in Cause Marketing and CSR Development -
  25. 25. © 2009-14 CafeGive, All Rights Reserved.25 Brands and movements are taking advantage of this opportunity and achieving monumental success with campaigns that marry social media engagement with CSR: • Chase Community Giving is the most successful financial institution page on Facebook, with over 3 million Likes and more than $20 million raised for nonprofit partners since 2009 • In 2013, #GivingTuesday inspired Social Media users to give over $19.2 million to charities and nonprofits, a 90% percent increase in donations from the same date a year prior • Girl Rising, a documentary and movement for girls’ education around the world, used social media to raise money and awareness for the film and crowdsource screenings, eventually becoming one of the top 100 grossing documentaries of all time, and growing - 4. INVEST in Cause Marketing and CSR Development -
  26. 26. © 2009-14 CafeGive, All Rights Reserved.26 Chances are your organization already has a CSR program and/or a nonprofit partner in place. The key is communicating and strengthening that commitment through social media. Just as campaigns increase brand awareness and consumer action, they can take your social good to the next level. - 4. INVEST in Cause Marketing and CSR Development -
  27. 27. 27 © 2009-14 CafeGive, All Rights Reserved. Campaigns, contests, employee engagement, cause-related content, constant social monitoring, reporting, nonprofit partner buy-in, fundraising events...Sound like a budgeting headache? It doesn’t need to be. With the proper tools and services, everything from social media planning to running analytics reports can be done while a cup of coffee is brewing, and within the proper budget percentage. We’ve published a guide outlining inexpensive and free tools for resource-strapped marketing departments, available here. 5. Find the RIGHT TOOLS
  28. 28. © 2009-14 CafeGive, All Rights Reserved.28 Waterfall is a mobile platform that combines text message marketing with CRM, allowing marketers to develop personalized engagement with their customers. For marketers serious about mobile (that should be all of you), there’s no better platform than Waterfall for incorporating on-the-go messaging with social campaigns. Waterfall has Enterprise and API plans available for as low as $699/month and $499/month respectively. But if that’s not enough, we’ve included a few more social media-wrangling tools here as well: - 5. Find the RIGHT TOOLS - The Resumator lets you recruit talent for your marketing team through social media. Along with a full-fledged database of applicants and interviewees, the Resumator can also spark word- of-mouth referrals through direct messages in social networks, ensuring you find the most qualified person for the job, wherever they are. Resumator has various plans available, from $99/month.
  29. 29. © 2009-14 CafeGive, All Rights Reserved.29 - 5. Find the RIGHT TOOLS - Addvocate solves the challenge of disseminating a message through multiple team members. When you want to take advantage of your staff members’ social networks, Addvocate makes it easy by finding and suggesting content for employees to share, thus getting everyone involved in campaigning. Addvocate is free for the first five users, with a $5/month fee for every user thereafter, or $299/month for a hundred- person company. Tagboard takes the guesswork out of hashtag monitoring. Simply search for your keyword, and the site will generate a board that aggregates posts from various social networks. Tagboard is free, and currently beta testing its partner program. Memes are one of the easiest to create and most shareable forms of social media content out there. Luckily for us, imgur has made it even simpler to browse create memes with its memegen tool, which takes seconds to use and is completely free.
  30. 30. © 2009-14 CafeGive, All Rights Reserved.30 CafeGive Social offers social media cause marketing campaign solutions that integrate each aspect, with pricing at every level of affordability. Subscriptions combine our brand- able campaign apps with the flexibility to run social media campaigns on your timeline with your goals in mind. Contact us today to gain access to these tools to integrate your comprehensive social media and CSR goals, and take your brand to the next level. It’s as simple as that. Now all that’s left to do is plan the rest of the budget... - 5. Find the RIGHT TOOLS -
  31. 31. © 2009-14 CafeGive, All Rights Reserved. Ready to jump in? Contact us to schedule a demo get started on your next social media campaign. Share this guide!

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