Social Media advertising for a digital business – Brand Awareness Vs Cost of Conversion Posted on July 21, 2020January 5, 2022 Posted in Digital businesses The online world is supersaturated but extremely crucial for your business. With time it is becoming more and more complicated to carve your own space and get your message noticed. People have shorter attention spans and using social media advertising effectively can cater to their needs. Online buzz is important for your business to thrive. What Is Social Media Advertising? Social media advertising is a branch of digital marketing that includes paid ad campaigns that are run on social media platforms to reach out to target audiences. Advertisers can promote their brands, give an in-depth view of products or services, and convert the viewers into potential customers. Social media platforms such as Twitter, Facebook, Instagram, LinkedIn, and Pinterest are commonly used. What is conversion cost? It is a term used in cost accounting for the sum of direct labor costs and manufacturing overhead costs. Your ad budget should not come close to the cost of conversion and the funds need to be separate. Study user behavior, audience trends, and your competition to understand the business. You ideally need to gain insights into visitor traffic and manage your ad campaigns so that your costs are covered. What is the goal of your social media campaign? It is important to set tangible goals for your ad campaign. Social media campaigns are different from traditional advertising primarily because of the targeting feature which enables brands to connect with the ideal buyers. This targeting is a process that is based on their geographic, demographic, psychographic, and behavioral characteristics. Brand awareness: If your focus is to attract customers, your strategy should generate impressions that can convert the targets to buyers while re-enforcing brand equity. Your brand messaging must convey why you are worth the money and faith. The call to action entirely depends on your basic requirements. Sales: If you need sales then more money should go in targeting the middle to bottom of the funnel, as these consumers are the nearest to making the purchasing decision. If the product you sell is relatively new in the market then your target should be the top of the funnel to grab their attention from the start. It is a good way to assist your potential customers throughout the buying journey and keep them posted about the latest products. Lead generation: The idea behind a lead generation campaign is to attract new customers or get an idea of the people who are interested. The strategy aims at taking the consumers to the landing page, collecting their contact information, and extracting potential sales leads. Information is the key to a good advertising plan. The average cost of a campaign v/s cost of conversion: Your ad spend is how much you pay to each social media platform. While dividing your advertising budget, a chunk of it will go to ad spend. The remaining will be spent on additional things like hiring a freelance graphic designer. If your online business needs an expert then you might want to give the project to an agency to manage your social media advertising campaign. If you are planning to work in the house then you have to buy software for monitoring the social media ad campaign. If you use free software you can hire a copywriter to get better value. Conversion costs will always be more than ad budgets as it deals with the development of product-pricing models and estimates the end value of finished products. When you run an online business check the waste that can be eliminated for a smoother production process. It includes a vast arena of things like employee benefits, salary, payroll taxes, equipment maintenance costs, and other necessary expenses. Creative planning and detailed budget allocation are important. If you don’t want to invest and then regret, do the research first.