Budgeting for
Social Media
November 4, 2009
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Today’s Presenter
• Lindsey Patten
• Communications Consultant
• Synthesis Communications
• www.notesfornonprofits.blogspot.com
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Budgeting
for Social
Media

Presentation Objectives
You will learn:
A Major Social Media Myth
Before You Budget
The Components of Budgeting
3 Stages of Budgeting
ROI versus ROE

What is Social Media?
Social Media is defined as:
Online content created by people using highly
accessible and scalable publishing technologies.
At its most basic sense, social media is a shift in
how people discover, read and share news,
information and content. It's a fusion of
sociology and technology, transforming
monologues (one to many) into dialogues (many
to many) and is the democratization of
information, transforming people from content
readers into publishers.
www.wikipedia.org

What is Social Media?
Another definition:
Social media is born out of the need to
combat the isolation of technology. As
human beings, our inherent nature is to
build and be a part of a community.

The Conversation Prism

MYTH
Social Media is free.

Before You Budget
1. Assess Your Current Tools
2. Assess Your Resources
3. Determine Your Objective

Components of Budgeting
Time
Money

Time
Why do we have to budget for time?
How to budget for time:
$20 an hour x 1 hour a day x 5 days a week= $100

3 Stages of Budgeting for
Social Media
Planning Process
Initiating
Continuing Use

Planning Process
For every social media venture you
take on, a planning process needs to
be in place. Included in this planning
process is a budget. It is crucial that
you budget for social media ventures.
Although they appear to be free from
the outset, they can cost a significant
amount of time and money.

Planning Process
Costs during the planning process include:
Contractors Research
Extra Staff Social Media Plan
Technology Advertising

So let’s break this down:
Research
•Survey emails composed and sent: 2
hours x $20
•Collecting responses: 1 hour x $20
$120
•Researching available social media tools:
3 hours x $20
Contractor
•Assess organization and provide
comprehensive social media plan: $350
10 hours x $35

So let’s break this down:
Staff Time
•Consulting with contractor: 5 hours x $20 $100
Advertising
•Add special insert in latest direct mail $50
for 250 people:
Total for Planning: $620

Initiating
Initiating social media can come
with costs as well. As soon as you
have determined what social media
outlets you have chosen to use, you
must then face additional
challenges.

Initiating
Costs during the initiating process include:
Staff Time Design
Training Content

So let’s break this down:
Training
•Training staff about message as well as $100
how social media works: 5 hours x $20
Staff Time
•Posting to Twitter/Facebook/Blog for $20
one year: 1 hour a week x $20=
NOTE: Per
year, this staff
time would
cost $1000

So let’s break this down:
Design
•Design background for Twitter account: 3 $60
hours x $20
Content
•Create enough blog content for one $100
year: 5 hours a week x $20
NOTE: Per year,
this content
would cost
$5000
Total for Initiating:
$280

Continuing Use
It is extremely important to take in
account not only your initial use of
social media, but all continuing
aspects. Think of your current
campaigns as well as your future
ones and how you plan to integrate
social media into them.

Continuing Use
Professional Development
Future Costs
Staff Time
Campaign Costs

So let’s break this down:
Professional Development
•Money for the upcoming year: $100
• 5 hours x $20
Future Costs
•Charges for new technology: $200
Total for Continuing Use: $300

Total Budget for Social Media
$1200

ROI/ROE
After budgeting for all of the above, it can
be difficult to assess whether social media
can offer you up the proper return on
investment for what you are putting in.
There has been debate amongst charities
regarding the use of ROI (return on
investment) versus ROE (return on
engagement).

ROI/ROE
Defining social media as a direct source of
funding (like a direct mail piece) can be
impossible. Instead look at it’s potential
as you would a newsletter. There can be
no ask, but it can still affect your bottom
line. Although the debate about social
media and ROI will continue, it’s
important for you to look at what works
best in your organization.

Thank You
www.twitter.com/lindseypatten
www.lindseypatten.com

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