4 Tips to Reducing Social Media Ads Cost

It’s only natural for small businesses to jump into social media ads — especially when all people seem to talk about is establishing a formidable social media presence. Assetdigitalcom.com reports that about 71% of these establishments market themselves through social media.

Although it sounds simple on paper, social media ads can be rather complicated. For starters, social media is free, but advertising isn’t. Most small businesses end up blowing their entire annual marketing budget within a few months.

Therefore, it is vital to learn how to stretch out your social media ads budget without impacting the results. Luckily, below are tips on reducing these costs while increasing leads.

Start with Analyzing Your Social Media Ads Data

Your business can easily target new and previous customers by leveraging data. Analyzing data helps you know the exact size and reach of your prospective customers. You get to understand the social trends, interests, cues, and signals of your buyer persona.

Ensure You Focus on Retention

Small businesses usually make one grave mistake — focusing too much on luring the next prospective customer and forgetting their current customers. However, acquiring a new customer is about five times more costly than keeping an existing client.

For starters, you incur several costs on social media advertising to acquire a single customer. You have to budget for content creation, scheduling, and promotions per net new follower. However, customer retention is about creating a long-lasting connection with your existing customers to boost loyalty and brand affinity.

You can achieve this through engaging with your social media followers, which is significantly cheaper. According to HootSuite, more than 150 million people use Instagram’s direct message to reach out to businesses. Therefore, providing excellent customer service on these social media platforms will help you retain more customers.

Bank on User-Generated Content in Social Media Ads

User-generated content (UGC) describes any content form — audio, digital image, posts, blogs, and videos — generated by end-users or consumers of any service. Equally, all this content is available to other end-users or consumers. Interestingly, 70% of consumers trust user-generated content compared to company website information.

Reduce Your Frequency

Social media advertising is measured in two unique ways: Either through frequency or reach. Frequency is the number of times that your target audience will view your social media ad. Reach, on the other hand, is the actual number of people that see that particular ad.

Here is a more practical approach to help you understand how reducing frequency can lower social media advertisement costs. Let us say you have a low-reach ad on a high-frequency campaign. What does this mean? Well, you are spending a lot of money to have your message seen or heard multiple times by a small group.

Therefore, reducing frequency is an excellent way of reducing social media advertising costs. It is far less costly and effective to target your audience rather than increase frequency. Ensure you effectively plan your campaigns to guarantee low frequency but high reach.

Billo is Here to Help

Reducing your social media advertisement cost comes down to four critical factors — Analyzing your audience, reducing the frequency, focusing on customer retention, and leveraging user-generated content. At Billo, we can help you grow sales and boost brand loyalty through low-cost, user-generated videos. Ensure you contact us today to increase conversations with custom-made video ads.