Social Media Budget: How Much Money Should You Spend on Social Media?

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Money 2So, how much money are you budgeting for social media campaigns this year? For next year?

I was struck by the juxtaposition (I <3 that word) of the first two articles in today’s issue of SmartBrief on Social Media:

The first one, which appears at E-Consultancy under the title of Investment in Social Media Still Modest: Report, lists a number of reason why companies are hesitant to spend money on social media, even though the budgets have slightly increased since last year:

  • Lack of resources
  • Lack of measurement
  • Lack of understanding and
  • Lack of budget all make the list.

Yet, over on Mark Collier’s blog, under the title of Ford CMO Jim Farley: Social media leading to ‘massive cost savings’ for Ford, Farley reports:

On the Fiesta Movement, we had higher unaided nameplate awareness than Fit or Yaris, and we spent 10 cents on the dollar, than a traditional tv ad campaign [their emphasis].  So by starting earlier and using social media to spread the word about the new product, we’re really reducing the amount of traditional advertising we have to spend.

Not every social media campaign is going to be as successful as saving 90% of your advertising budget, but how long are you going to wait on treating social media as a serious, measurable, tactic for increasing your online or brand awareness, driving more qualified leads to your site, and converting that traffic into business?

Hopefully you won’t wait until all of your competitors have already proven the model. Now get out there and experiment, people!

Rich Brooks
Social Media Marketing for Small Business

Photo credit: Daniel Borman