31 Oct 2019 Strategies

Why is social media advertising important to business?

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It’s important to use social media advertising for your business because it gives you a greater reach on any budget, it enables you to further define your audience, boost brand awareness, credibility and engagement levels, need I say more? 

The number of internet users worldwide in 2019 is 4.388 billion, up 9.1% year-on-year. So, failing to cash in on the wonderful world of social media advertising would be a huge oversight. With 3.48 billion social media users worldwide in 2019 spending an average of 2 hours and 22 minutes a day on social media, not capitalising on an enormously popular media channel, would definitely not land you employee of the month. 

54% of social browsers use social media to research products. Over half of people browsing their social feeds, which they do A LOT as we have mentioned before, are looking to find out more information about a product they are going to buy. Plus, they are accessing your products and service anywhere, anytime with 90% of all users access social media on a mobile device.  But what is social media advertising? 

What is social media advertising? 

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 It’s simple really, paid social media advertising is a super cost-efficient way to promote your business. Each platform works on a pay-per-click system, which means you pay when people click. Letting you find your niche at a discounted price compared to conventional forms of advertising such as television. 

Why would I spend money on social media advertising? 

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Did you know that by 2021, global retail eCommerce sales will reach $4.5 trillion. But yeah, why would you want a slice of all that action? You stick to newspaper ads and TV infomercials. *eyes emoji* Plus there is good news for B2B eCommerce too, as by as early as next year B2B eCommerce sales are set to outgrow B2C sales.  

Amplify Reach 

Social media advertising is an incredible way to amplify your reach. Over the last few years, there have been a series of changes to all the algorithms that run our social media platforms. This means that organic content visibility, particularly on Facebook, is in a steady decline.  The sheer amount of content on these platforms is saturating the market and your content is not being seen.  

Paid social media advertising is guaranteed reach. You don’t even have to target, and you will reach a ton of people, but this is not what we would suggest.  Target your audience to the best of your ability to start. Targeting means that you are showing your product or service to the people you want to see it, meaning more website traffic, more leads and ultimately sales, which is what every business wants in the end. 

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Plus, make sure that you are on the right platform. For example, if your product is targeted at women over 40, then your best bet is going to be Facebook and not Instagram or Snapchat, but we will get onto the specific platforms later.  

Fit any budget 

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Social media advertising is cheap when compared to more traditional advertising methods like TV. On most, if not all social media platforms, however, there is a minimum spend, but this won’t be much. 

 Now, if you cannot afford the minimum spend then I suggest that you rethink your budget, because social advertising is cheap, and if you do it right, it gets results. 

Most social advertising platforms will measure your results in the form of cost-per-click (CPC), conversion rate or click-through-rate (CTR), here are the latest figures to explain what the pricing benchmarks are for several different industries. 

For Facebook, across all different industries and businesses, the average CPC is $1.72 or £1.34 (Correct on 24th October 2019, who knows what it will convert to after Brexit). 

If you said to me that I could pay just over a pound for a solid lead which could then turn into a sale, I’d snap your hand off. Seems like a fair deal. However, what I will say is that here at Likemind Media, being average isn’t good enough and we aim to get you into the pence, not the pounds.  

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Enhance your targeting 

You can see anyone who views your ad, this is very beneficial to you as a business. You can now define your audience even further through hobbies, interests, personality types, etc. Once you have collected this data you can create look-alike audiences based on the success of previous campaigns.  

Target your audience more specifically will not only help you with social media advertising, but it will also help you understand the people who are consuming your content, buying your product or using your service. Therefore, you will be able to better cater to the needs of your audience. 

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Boost Brand Awareness 

Gaining sales of your products/ services via social media is ultimately the end goal, everybody wants to make a profit. However, whilst your products/ services are flying off the digital shelf, your company is gaining some invaluable brand awareness.  

If you choose to do a remarketing campaign and your audience isn’t cold* then your audience is going to see your brand multiple times and begin to think, I have seen these guys everywhere, who are they? They click your profile; they snoop around your profile and the longer this goes on the more trusted you become.  

Regular appearances on social media advertising means greater recognition. Greater recognition leads to more credibility. More credibility means more engagement and more sales. So yeah, social media advertising is good for your business.   

Gather marketing Insights 

Once you’ve run your social media advertising campaign, you can use the analytics to see a whole range of incredible data. Who is viewing your products? Who almost purchased and left at the checkout? What are people searching for on the site?  

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This is an excellent way to, again, better understand your audience. However, it could also be a means of evaluating your customer journey on your site. What changes can we make, which pages should be most prominent to our customers? 

For me, these benefits of social media advertising prove its value to any business. In the modern world there are plenty of ways to get yourself seen by your audience. Although nothing compares to social media advertising. For a relatively small budget (compared to traditional advertising routes) you can learn so much about the people buying your product/ service, your website, your customer journey, all whilst selling the product, but which platform do you use? 

The Platforms 

LinkedIn 

LinkedIn is definitely more suited for business-to-business interactions. The targeting on LinkedIn is far more specific. You can target by industry, profession, job title, interests, company. They can help gain visibility in a professional capacity, therefore increasing credibility and trust.  

Facebook/Instagram 

Probably the most popular choice of social media advertising is Facebook and Instagram. There are a plethora of Facebook ad formats, which makes it perfect for business-to-consumer campaigns. But its ability to make scalable audiences is also great for B2B. These formats are ideal for getting deeper into your audience and uncovering potential customers through awareness and social reach. 

Increasing web traffic sales and driving awareness is the best goal for Instagram ads. Top brands on Instagram are seeing a per-follower engagement rate of 4.21% which is 58 times higher than on Facebook and 120 times higher than on Twitter. Highly visual content gets users to engage with the content and show off products in the best light for high B2C conversions. Plus, the number of people using Instagram advertising is rising dramatically with Insta Story users increasing from 150 million to 500 million from Jan 2017-Jan 2019. 

Twitter 

Twitter’s various advertising options let brands work on getting new followers for a product launch or simply starting a new social channel. Twitter ads help grow awareness and drive clicks to your website. Plus, if your aim is to get people clicking on your advert (If it isn’t, I’m worried) then Twitter is the place for you, with Link clicks accounting for 92% of all user interaction with tweets. 

Snapchat 

Snapchat is a B2C platform that works best for younger audiences with great engagement levels. Its sponsored filters and lenses are built to get users to engage, have fun and promote the product. Visibility and awareness are high markers for Snapchat ads. 

The stats 

We have given you the benefits of social media advertising. We have given you a quick insight into why you would use each platform, but now, it’s time for the stats

  • There are 1 Million NEW social media users DAILY. 
  • There is plenty of room for MORE growth. 
  • Only 11% of people around the world are on Instagram, but this is set to sky-rocket. 
  • People are spending more time on social than watching TV. 
  • Budgets for social ads to double by 2033, so get on it before you’re priced out. 
  • One of the top 10 reasons people go on social is researching a purchase. 
  • Millennials and Gen-Z are heavily on social media.  
    52% of gen-z/millennials think that social ads are getting more relevant. 
  • Social media is full of people primed to discover. 
  • 76% of U.S. consumers have purchased a product they’ve seen in a brand’s social media post. 

Conclusion 

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Social media advertising is GREAT for your business. There are more reasons to advertise on social media than just sales. The amount that you must spend to get results is very low compared to more traditional forms of advertising. There have never been more people online, and that is not about to stop growing. Ads are becoming more personalised and relevant to each consumer with each new analytic dimension that is added. It has never been easier to target the right people for such a small amount of money, whilst gaining exposure, trust, credibility and enhancing reputation. So, go on. Get advertising.  

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