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Every SMM manager or small business owner has to deal with the marketing budget planning at the beginning of the year. It is never an easy task: prioritizing your goals in such a rapidly changing area can be very difficult. To help you with this challenging task, we have outlined a few budgeting ideas that can help you prioritize your tasks and goals and define the right resources for the right activities for your social media marketing.
Two things are crucial to remember when budgeting your SMM activities. Firstly, your budget is likely to undergo changes throughout the course of the year. It is normal to review and change what was planned, particularly with social networks. The functionality of such tools like live broadcasting and stories may change and be improved, which may lead you to additional ideas for Instagram marketing. Don’t be afraid to review and make changes to your SMM budget for 2018 every month, taken into account your available resources.
Secondly, there is no single right way of budgeting your SMM activities. Different digital marketing companies apply different approaches, and often go by trial and error. Even the best of advice sometimes does not work. For this reason, you need to estimate every SMM activity with regard to the specifics of your business, and take a personalized approach in using the advice you read here.
The Two Main Approaches to Budgeting SMM Activities
Basically, you can shape up your 2018 SMM budget based on 2 different approaches:
- You can see how much money your company can afford to allocate on SMM this year given the results of the previous year and the overall effectiveness of the social media for your business. Then, you decide what to use the money for.
- OR you can set the overall goals for your business that can be achieved with the help of social networks, and then decide how much money will be needed to achieve those goals. Your marketing goals could be different, from increasing brand awareness or increasing website conversion to boosting the sales of a particular product. These goals will determine what you need to do and how much money you will need for each activity.
These two smm budgeting strategies seem to be opposite, but in fact they should be combined. A good idea is to try and draw up two different budgets based on both schemes and then compare them. This way, it will be easier for you to eliminate the unnecessary details and focus only on the key activities that are likely to help you achieve your business goals.
Budget Components for Every SMM Strategy
With every approach, your budget will likely consist of the following:
Fixed costs. Fixed costs are the easiest to predict for the year ahead and remain relatively stable throughout the given period. The fixed costs will include:
- The cost of marketing tools (monitoring, design software, chat bots for customer service, paid photo banks etc.)
- The salaries of content managers and other people that are directly involved in the creation of your content
Variable costs. These costs may change within the given period and depend on the state of the market, the current economic situation in the country etc. These include, but are not limited to:
- costs of sponsored posts by influencers and micro-influencers
- events that are organized locally for your social media campaigns
- costs for social media content promotion
- any other costs that may vary throughout the year
In a well-built marketing budget for 2018, the fixed costs will be carefully considered and included into the minimum that is required for your SMM goals. The variable costs can then build up on the initial fixed costs depending on what your company can afford this year.
The Share of SMM in the Total Marketing Budget
How much budget should a business or a digital media agency allocate to the social media promotional campaigns? With the huge role that the social media are playing in business promotion nowadays, any marketer would suggest that it should be at least 50% of any budget. Some businesses allocate as much as 80% to 100% of their marketing budget on the social media. The truth is there is no single right approach to this. The efficiency of a social media campaign, in fact, does not depend on the amount of money spent on it, but on the quality of content and the accuracy of its distribution among the right users.
Now that everybody has mastered Facebook Ads Manager, almost every respectable business invests in paid Facebook marketing activities every month. As a result, users are bombarded with irrelevant content and do not feel the urge to like, comment or share any paid content. Instead, they focus more on what their actual acquaintances and friends have to say, with their live broadcasts and stories. A minimal budget for the right micro-influencer can have a better effect on user engagement than a huge budget on paid ads. You can use even a minimal SMM budget wisely, and get the desired effect.
In order to allocate the resources wisely, consider the following:
- Who is your ideal customer? Which social network does he use, and at what parts of the day?
- What features of the social network appeal to this user the most? What kind of content does he share and comment?
- What offline marketing activities could appeal to this user more than online content?
You are free to allocate most of your budget to the social media promotion, and in many cases, it would be the wise decision. But before throwing most of your budget into social networks, consider the type of content you need to create and the kind of reaction that you want to get for this content. Plain featured posts don’t work anymore, and you will need a much more subtle and personalized approach in 2018 to get to your customers.