As humans, we’re inclined to creating a monthly budget and segment it based on our needs. The same is true for businesses, whether it’s a small enterprise or a huge multinational company.
In the digital business industry, marketing matters. The internet is crowded and competition is tight. While organic reach is great, it does a lousy job at giving you your fair share of exposure to your target consumers.
It’s a common misconception that social media marketing is expensive, which is why most traditional marketers tend to shy away from it. However, there are strategies for every budget, and budget plans for every organization size.
How do you determine the right budget for your company? We did a quick rundown of the best practices, and the things you need to consider when planning out your finance.
A Common Rule Of Thumb
Ultimately, your budget will depend on your type of business, such as if you are a business-to- consumer (B2C) or business-to-business (B2B) platform. Setting aside the factors and objectives, what you can do initially is to set a percentage of your total business for marketing.
The Business Development Bank of Canada surveyed most entities in the market and collated these results to create the basic rule of thumb in allocating your marketing budget. B2B companies should spend about 2 to 5% of their overall revenue to their marketing department, while B2C companies are expected to give an amount between 5 to 10%. This is an easy trick to follow if you’re not keen on being as specific in your budget plan.
What Should You Include In Your Social Media Budget?
Admittedly, “social media marketing” is vague and leaves no clue as to where your budget should be spent. According to helpful article from Hootsuite, there are six things that are essential for every social media strategy (which should be considered when planning out your budget).
Content Creation
Content is the main point of selling for your brand, and it’s only reasonable to include it in your social media budget. This includes the photography, graphics, and copies of what you publish online.
Software And Tools
Social media softwares and tools such as a LinkedIn lead generation tool is at your disposal, and you have every right to utilize them. It works to beef up your campaign with an online helping hand.
Paid Ads
Paid advertisements allow you to tap a market outside your social echo chamber. Almost every social media platform offers some kind of paid campaign option today. It’s a wise decision to take those into account when crafting your strategy and budget.
Paid Partnerships
Influencers are called influencers for a reason. If paid partnerships are part of your strategy, they need a space in your budget plan, too.
Training
Your employees help you put out quality content in an efficient manner. One of the best business investments is training your team who handles your social media first-hand.
Account Management
Handling accounts can be overwhelming, especially when they’re all scheduled to publish content on a daily or weekly basis. Today, social media scheduling tools are a must for every business that’s looking to push their marketing efforts online.
It’s Time To Look At Your Business Objectives
All in all, the most important factor you should consider when planning your social media budget is your business objective. Is it to gain sales or increase brand awareness? This will tell you which direction your resources should be headed, and it can help you prioritize your funds.
No two business goals are the same, such is true for budget strategies. Mix and match what you can until you find what will work for you. In the end, creating a social media marketing budget plan is simply a means to an end.