In accounting, a strategic budget is a budget prepared while taking into consideration long term objectives and spans over a year. The intent behind such a budget is to develop a plan that supports a long-range vision. This can involve preparing for and forecasting both short term and long term budgets. In marketing, every business whether small, medium or large should have a social media strategy that is backed by a social media budget. Budgeting not only helps you ensure that you have the funds to achieve your goals it also allows you to calculate the ROI of your efforts.
What Is A Strategic Amount To Budget?
Every second person today is on social media and the potential to be tapped is enormous. A frequently asked question is how much should be invested in social media marketing. There is no standard size for a social media budget as every company has different resources and priorities. Regardless of the size of your budget, there are key components that should be taken into consideration which we will discuss.
What Are The Industry Standards For A Social Media Marketing Budget?
With social media, there is always more that can be done and more ways to reach out and more leads that can be converted. Before you get swallowed in that bottomless pit consider the industry standards. The general rule for B2B companies is 2-5% and B2C companies 5-10% of revenue will be spent on overall marketing. A percentage of this budget will be spent on social media marketing and ranges from 15-25% of the overall amount. This amount may or may not apply to your business depending on how much of your sales happen online.
What Are The Key Components To Include In Your Social Media Marketing Budget?
The key components to be included in the budget are:
1. Content Creation
Content is the most important component of your marketing plan and should account for a significant portion of the budget. Here are some of the items that you need to include while budgeting for content.
- Photography and Graphics: A graphic designer and a photographer are important in order to create high-quality visuals. If you want to reduce the budget on this category you can use free online stock photos.
- Video: Depending on the content that you are producing this can include videographers, editors, production costs, directors, producers, and a host of other staff.
- Talent: You will need actors, models and extras depending on your project. This category also includes social media influencers whom you might want to hire to promote your products.
- Production costs: This will include travel and meal expenses to props and location rentals.
- Copywriting: Copywriters can be hired as part of your team or taken on as freelancers.
- Translators: If you are a global brand or cater to customers in multiple languages factor it in.
2. Software And Tools
These software and tools need to be added to your social media marketing budget.
- SEO and keyword research. Google AdWords is an excellent place to research and bid on keywords. Your content can also be based on your keyword results.
- Content hosting which will include your website, microsites, landing pages, and domain names which need to be created, maintained or purchased.
- Editing tools such as Adobe Creative cloud for in-house editing and designing needs.
- Project management systems like Trello or Wrike should also be included.
- Social media management platforms like Hootsuite saves a lot of time with scheduling
- Consider using marketing automation tools like MailChimp to help with email marketing.
- Analytics tools to track your social media campaign results.
3. Paid Advertising
All social media platforms allow for advertising and this should be included in the budget. Marketers can boost posts or run full-fledged campaigns. Add these to your social media budget.
- Facebook ads.
- Facebook Messenger ads.
- Instagram ads.
- LinkedIn ads.
- Pinterest ads.
- Twitter ads.
- YouTube ads.
- Snapchat ads.
- TikTok ads.
4. Paid Partnerships
Don’t forget to include paid partnerships in your budget if they are part of your strategy.
- Influencer campaigns and collaborations should be budgeted for
- Co-branded campaigns require organization and planning time that needs to be factored in.
Although there are a lot of free resources available, it is also important to invest in training your team. Depending on the needs of your campaign or the skill levels of your team consider including these training options in your social media budget.
- LinkedIn Learning.
- Blueprint Live and Blueprint certification courses
- Hootsuite Academy
Social media marketing budgets are very important this year especially when people are still following social distancing norms, stay more time indoors on social media and prefer to shop online. Social Media platforms are also constantly improving their AI which makes targeting a prospective customer more accurate. This is the best time to catch up and get a lead over your competition.
Do you need help with making a strategic budget for your social media marketing plans? We at The Social Expansion Project help businesses with their marketing strategies and goals. You can request your free, no-pressure consultation here.