Social Media Campaign Budgeting

What is Realistic Social Media Campaign Budgeting?

Social Media Campaign Budgeting has been a topic on all digital & online media platforms for quite some time. Another key point without an expound knowledge base may seem like a Pandora box. Frequently, we receive questions on this topic from our clients as well as our site visitors. Our team has come up with the  answers to help you grow your business to the next level:

Realistic Social Media Campaign Budgeting

This is driven by two factors. Including, the internal factors and external factors. Internal factors may relate to the content owner themselves. Their main goal is in the ROI (Ratio on Investment) demanding sector. External factors are contributed by the sourced campaign managers. This also applies to the ones promoting the said brand, product or company.

A Boost for your Social Media Campaign Budgeting

It is good to mention that we receive your questions daily. Our team always answer through our FAQs Answers Page. Moreover, those with more questions are answered directly through their emails and or the various online Forums. For more questions regarding this topic, some which we may not be able to provide below. Please feel free to Contact Us.

Remember, this is one of those topics that is difficult to do without a specific business in mind. For instance, we could base our discussion on the various basis. Business duration of the brand, products, and services offered.

[caption id="attachment_13435" align="aligncenter" width="1920"]Social Media Campaign Budgeting
Effects of utilizing a realistic Social Media Campaign Budgeting.[/caption]

Major Keys to a Social Media Campaign Budgeting

These are some questions you should ask: whether as an owner of the company or as the marketing team player. Particularly, before you can create a marketing budget.

  1. The percent of the budget to be spent on marketing?
  2. Customer lifetime value (CLV)?
  3. Convert cold traffic into customers? What is your funnel/conversion process?
  4. Conversion rate from traffic to leads?
  5. Conversion rate from a lead to a customer?

Know what a visitor or a lead is worth. The lifetime value of a customer is for your business. Even though the answer may seem a bit clouded. Seek measurable (and great) results.  Jmexclusives Team introduces a Marketing Budget to put into consideration the realistic social media campaign budgeting.

Marketing Budget as a % of Revenue

Marketing drives revenue. On the average range, companies spend zero to forty percent of their revenue on marketing. In very competitive and high growth industries, especially venture-funded businesses. This can be as high as forty percent. Therefore not concerned about profitability. Some businesses spend nothing on marketing. They have a built-in client base or a great location.  The more realistic curve is between 3 – 20%. The average for companies under 300 million shillings revenue with 10% profit margin is 8 – 10%. In particular, a company that is making $8M in revenue typically spends between $30,000 – 10,000. This is primarily on advertising and marketing expenses. It does not include the salary of the marketing director. To emphasize, these companies are the likes of Safaricom PLC, Brookside Dairies, Telkom Kenya, KenGen and even Kenya Commercial Bank.

Lifetime Value in Social Media Campaign Budgeting

CLV is the average total lifetime revenue from a customer. Every business will have a range. It may take a couple of years to get a clear expectation of what that might be. For instance, Apple’s CLV is $8,000, based on the cost of their products and their strong brand retention. The probability of selling to an existing customer is greater than fifty percent. A customer spends close to $10,000. The business can spend up to $2,000 on advertising to get a new customer. The smaller ticket items without a high repeat customer base make it extremely difficult to market at such a low rate.

Traffic Conversion in Social Media Campaign Budgeting

To leap benefits associated with your site visitation.  Address the conversion analytics. Additionally,  have a well-defined process for converting cold traffic from initial awareness through to the purchase process. Some key methods to doing this are: 1.Capturing emails and utilizing email marketing 2.Producing Webinars that are both educational and strategically sales focused 3.Adding clear calls to action for lead capture 4.Remarketing, which is advertising to previous visitors of your site Place the lead capture plan in place to refine, test, and improve your strategies. It’s always easier and less expensive to double the conversions. Rather than it is to double traffic. Once  CLV has developed proven methods of converting traffic to leads. Proceed to create a marketing budget.

Customer Loyalty through Social Media Campaign Budgeting – CPA

In order to create a budget,  understand which tools are in play for business. 1. Do platforms make the most sense? 2.The role of digital play in your overall mix. 3.visitor’s worth. 4. cost per acquisition (CPA)? CPA is the cost of bringing a visitor to the site divided by the conversion rate. For example, $1 for a qualified visitor divided by 2%. Conversion rate = $50 CPA. The point is often overlooked so CPA must be less than the CLV. Ideally, the CPA is less than the initial purchase to generate a cash flow positive business. This does not require investment or debt to acquire customers. Paying equal to the purchase price results in losing money as there other expenses associated with the business.  Pay more for the first purchase. Then with time, more customers will buy from you.  This holds for companies with a subscription model or businesses with a high retention rate. [caption id="attachment_14037" align="aligncenter" width="1920"]Social media campaign budgeting Marketing drives revenue. On the average range, companies spend zero to forty percent of their revenue on marketing. In very competitive and high growth industries, especially venture-funded businesses. This can be as high as forty percent. Therefore not concerned about profitability.[/caption]

What will it cost in your actual Social Media Campaign Budgeting?

Traffic costs are going up daily with increased demand to market. They use delivery platforms. Facebook ad costs are up 150-175% in the last 2 years. Maintaining CPA is hard. Therefore be better at other strategies such as increasing your conversion rate. One thing that can’t change is how much a click will cost. Depending on the industry, these numbers vary. Facebook is more consistent with CPCs. 1.AdWords: $0.50-$10+ CPC / $1-$2 average 2.Facebook: $0.20-$3 CPC / $.60-$1.50 average 3.Display Ads: $.10-$2 CPC / $0.40-$0.70 average 4.Pinterest: $.15-$2 CPC 5.Twitter: $2-$4 CPC 6.Remarketing: $.50-$2 CPC Across all of these platforms, the cost per click averages out to be $.50 to $1.50. Small businesses need to be very selective with their digital advertising. It’s about doing one to two platforms really well versus trying to diversify. The creative costs, data analysis costs, and the management costs go up if spread thin.

Breaking down your Social Media Campaign Budgeting

Once the percentage of the marketing budget going towards digital is determined. That is to say, the right tools are in place. Explicitly based on customers and any new insights. Each platform has their own strengths and weaknesses. There is a difference in the quality of people searching for something specific. Markedly on Google versus someone just browsing Facebook. Remarketing, Google AdWords, and Pinterest are great avenues of people looking for specific items. AdWords is perfect for search intent. Facebook, Pinterest, and Instagram perform well for consumer products. Finally, LinkedIn, where clicks are more costly, is right for business services.

An example of a Social Media Campaign Budgeting Plan

Let’s say you have $500,000 to spend on all marketing activities for a given quarter. Here’s a breakdown that a medium-sized B2B company might employ as an itemized marketing budget. (Note that this is only a sample breakdown).The final marketing budget must be shaped by your company’s needs, and the mileage absolutely varies. The numbers should never stay static. They should be refined by testing.)

Inbound Content Marketing: 20 – 25% ($100 – 125K)

The content is a must for any business with a digital presence.  it’s the best way to attract new leads and move them through a defined buyer journey. This makes sense to invest in content marketing in its various forms. For instance: in blogging, videos, infographics, white papers, case studies, podcasts, or other types of collateral.

Email Marketing: 5 – 10% ($25 – 50K)

This is simply one of the most effective channels for retaining and nurturing leads. Instead of losing web visitors who consume your content, it’s better to keep offering value and staying on their radar until they’re ready to take the next step. Specifically on their journey in purchasing products, all the way to the point of sale. Email marketing can be relatively inexpensive to set up and maintain. Thus can yield an appreciable ROI for years.

SEM PPC, Display, and Social Media Ads – 20 – 25% ($100 – 125K)

Search Engine Marketing involves both SEO in general and buying pay-per-click (PPC) ads on search engines. Especially such as Google AdWords ads. Those ads can be very effective with the right copy and the use of buyer keywords. Display ads appear as “banners” on various relevant websites. Social media ads, such as those offered by Facebook and LinkedIn, can yield an extremely high ROI with the right targeting and creative. It makes sense to promote content with 50% – 100% of the budget it takes to create it. An optimized mix of digital ads fits the “promotion” bill perfectly. In the beginning, it’s better to test things out with a smaller investment and adjust over time, based on results. [caption id="attachment_14038" align="aligncenter" width="1920"]Social Media Campaign Budgeting The content is a must for any business with a digital presence.  it’s the best way to attract new leads and move them through a defined buyer journey. This makes sense to invest in content marketing in its various forms.[/caption]

PR, Off-Page SEO, and Influencer Marketing – 20 – 25% ($100 – 125K)

Influence marketing includes the range of activities for building a greater brand presence. Including getting your brand into media outlets and sourcing high-profile guest blogging opportunities. In this case, scoring partnerships with niche influencers. Budgeting for these endeavors can greatly increase the popular awareness of a company.

Website – 10 – 15% ($50 – 75K)

A website is your digital storefront. Besides being designed well, it must convert visitors. For this to happen invest in fresh, SEO-compliant content and design. As well as an optimized flow that leads users seamlessly into your sales funnel. Continual conversion rate optimization (CRO) is always important as you gain traffic over time.

Traditional – 10 – 15% ($50 – 75K)

Traditional covers all of the age-old “offline” methods of advertising which still do work. Namely, events, print ads in magazines, TV commercials, radio spots, and billboards. While most modern brands will likely see more immediate returns from targeted digital marketing. A modest (yet definite) investment in traditional methods will only help solidify and sustain those gains.


In summary, there are multiple factors that play into establishing a strong digital marketing budget. Depending on your business’s intention of profitability, sustainability, or aggressive growth. Know your revenue, risk comfort level, CLV, CPA, and where your audience is. From here, you are able to make smart choices towards a budget that fits your intention for your business’s future.

You can utilize our Realistic Social Media Campaign Budgeting Plan in your next promotions. Read more articles like this one HERE.

Other References:
  1. Media Group: How To Create A Realistic Budget For Digital Advertising
  2. Adhere Creative: A Marketing Budget Example that Covers All Bases and Ensures ROI
  3. For other additions, suggestions, and contributions, Please Contact Us.

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