Hi! This is Rodolfo, all right? Let’s talk about social media?
Strategic actions are responsible for ensuring business growth. An example are the social networkswhich offer excellent results. After all, if they were nations, only the users of the Facebook would form the most populous country, with more than 2 billion of members.
When setting the marketing budgetit is important to have a specialized agency, with up-to-date professionals focused on obtaining the best return over the invested amount. If you want better results and are looking for a team what optimize this performanceit is important to know how to calculate your budgetor budget, before using it. Check it out below!
Calculate the investment that will be used
O investment is inserted in a context, the Digital Marketing plan. So set your objective, your goals and the time frame for achieving them. Also discover the margin of profit from your products or services and the availability Of delivery.
To help you, you can gather the following information:
- historical and expectation of sales;
- margin of profit per sale;
- percentage that the company is willing to invest on the social networks;
- participation of court hearing on each social media;
- channel with the better performance, according to the objective. For example, maybe Twitter is interesting to engage with, but Facebook has the best sales results.
Even if you still have no idea how much you will use, it is important to know what margin you can work with. It is common to allocate around 5% of revenue to common products, from 10 to 20% to digital products and up to 40% to luxury products.
Tip: What does investment in communication say about business growth?
Another strategy to define your Marketing budget is to establish which result want to achieve. So, you do the opposite way and discover the value what needs to be invested. In this case, it is very important to make sure that the investment idealized will result in a positive return for the company.
Define how to use the budget on social media
It’s needed set the budgetas well as all channels and actions that will be performed in social networks. For example, reconciling paid and organic media means you will need to invest in adverts and in Inbound Marketing.
It is common to define campaign ceiling before running it. Especially when starting in this area, this option can save time and help apply the money in a smart way.
Tip: 5 tips to generate qualified leads using social media
Each social network have a different way to do advertising investment. For Facebook and Instagram ads, for example, you sets the value and how the budget will be distributed.
In the lifetime option, the amount will be used within a period, but without a rhythm. It is also possible to apply all investment in just one day.
Understanding this, you will realize that if you don’t have experience and advanced knowledges in Facebook Ads, the campaign with daily budget is betterbecause it is more easy to monitor the performance and get better results.
Want to know even more? Click on the image below and watch the video where Guilherme explains everything you need to know to generate more assertive sales!
Track KPIs to optimize your Marketing budget
You KPIs (key performance indicators) are a set of metrics that serve to point out the performance of your campaigns. to accompany the marketing budgetthere are some important metrics:
- COGS: cost of goods sold, takes into account not only expenses, but also an average in relation to stock — so you’ll know how much do you have to invest in campaigns;
- ROI: return on investment, indicates whether the company had profit or loss and the proportion;
- CAC: cost of acquisition per customer, the average value that needs to be invested to win a new customer;
- CPC: cost per click, one of the key metrics for track ads paid on social media — it’s important to keep an eye on other metrics as well, such as CPL (cost per lead) and the CPA (cost per action).
As we have seen, it is possible to set up the marketing budget accurately and take advantage of potential of social networks, optimizing these results by monitoring successful cases. Also, look for the expert support who are always testing new strategies and features with focus in solutions creative and in the results.
Tip: Inbound Marketing Strategy: which KPIs should be tracked?
If you already want to put some of these metrics into practice, like CAC (cost per action), take advantage and use our CAC Calculator to increase your profits!