How much should you invest in a Digital Marketing campaign?

In our recent episode of #CreativeTalks with @UpIdeasAgency we solve your most frequent doubts about the ideal budget to invest in social networks. 

Welcome!

The budget for digital channels depends on many factors and includes different variables such as: 

• The objective of your campaigns and initial budgets according to your strategy
  
• The average investment values for platforms such as Google Ads, Facebook Ads and LinkedIn Ads
  
• The sector you business is involved in can affect the performance of your campaigns

Depending on the platform, both costs and investment ranges may change: for each social network there are minimum and maximum limits to achieve the objectives. 

The first step to take into account is the analysis of the type of client you have. From that define the social network through which you are going to reach that potential client to land the budget. Many companies start the other way around, and think that by starting a campaign quickly they will achieve better results without using a previously defined strategy. 

In this environment, the demographic information of your customer avatar or buyer persona is very important but it does not define everything. Also identify their fears, values, interests and dreams to have an ideal profile of your niche. 

Have a budget defined by the lead and follow up to know what results you have. Depending on the platform, the pattern is different, both in its operation, objectives, and costs. 

Advertise on Facebook and Instagram

These are the two social networks that work similar and are linked in terms of advertising management and paid campaigns. 

1.  When you guide on Facebook and Instagram, the main concept is that you go after the potential customer to find them. Unlike Google, where people look for you with specific interests.
   
2. Objectives within the platform: The further we are from the funnel, or you reach a “cold” audience, it will be cheaper to impact those people. The closer you get to the “warm” audience it will be more expensive due to the conversion ranges. 

Ads on Facebook and Instagram with the objective of brand recognition are cheaper. It is shown to a larger audience and the conversion rate is based on the user seeing the published videos, posts and knowing about profiles. The degree of user involvement is lower, therefore achieving an objective in that guideline will also be lower. Using investment ranges from 2 to 5 dollars allows impacting many people. 

Learn about the best strategies in Digital Marketing with the #CreativeTalks sessions from Up Ideas Agency. Watch them here. 

In the middle of the funnel we find the objectives of consideration. These require a little more budget, for instance, in a campaign on Messenger or Whatsapp message the cost per result will be higher in relation to a positioning campaign, where you invest 2 dollars to reach a thousand people more economically. On the contrary, if you want someone to write to you, the cost per conversation is going to be higher with an average range of two dollars, one dollar or 50 cents. 

At the final part of the funnel you need to have conversion goals. That is more expensive because it is more oriented towards people buying. The range is between a dollar and a half, and it also depends on the sector in which your company or business is in. 

How to define a budget? It depends on the objectives you set, your product or service, the type of campaign and the niche you are targeting. 

What you should take into account first is to define your customer avatar and its characteristics. Then identify the best products for the potential customer. 

A recommendation is to never try a digital campaign with a product that you have not sold or you know well it does not sell well. The best thing to do is to sell what you know has a good turnover and then you start testing with other products.

The results of the advertising costs depending on the segmentation, the geographical area and even for some industries it depends on the time of year. This makes the bidding very strong among advertisers as there are a large number of bidders who make the pattern expensive. 

It contemplates doing an internal analysis of your company, validating how much you are willing to invest for a client, video, conversation or sale and from there you can control the elements of your micro-environment. That means how much you can finally invest and what type of advertising to use. 

Learn to differentiate business goals from marketing goals and how you implement them on each digital channel. A commercial or business objective refers to sales and a marketing objective refers to leads, conversations and traffic. 

Get updated on the latest in Marketing and Advertising by following us on social networks like Up Ideas Agency.

Google Ads 

Google has different advertising tools, including the search network and how it is related to the partner network or display. 

Google AdWords works to the extent that people search for a product, service or topic of interest, and in relation to this your ad will start appearing. In this case the scheme is different from that of Facebook where the customer is persecuted. In Google the client searches and we appear through the ads. 

Google Display works very similar to how Facebook and Instagram work. Automatically, ads begin to identify interests of the searches that people do and begin to create audiences. You can select these audiences, for example, with interests in sports, food, cars, etc. How does the platform know this? Because the searches people do are recorded and the platform uses tags to categorize the searches. 

In the case of AdWords, the budget is analyzed according to the level of competitiveness of each of the keywords. If we search for the word “ice cream” which is broad, it means that there are many competitors advertising for that word and the cost per click will be more expensive compared to a search with the keywords “orange flavored ice cream in a punctual city.” The latter one is more specific and can be less competitive in the market and also provide better results than generic words because they point to very specific searches. 

First, it is important to analyze your brand, then search for keywords and identify the combination between generic words and long-tail or specific words to establish the cost per click. A recommendation is starting with a budget of $10 and up. 

Apart from the sector each country works completely different and the searches are different as well. Making strategies that differ from one region to another and therefore improve their effectiveness.

Discover with Up Ideas Agency how the Instagram algorithm works. Watch the video here. 

Linkedin

Linkedin is an interesting platform, and of all the social networks it is the most expensive one. Being a professional network focused on employment issues, it takes great care in this type of advertising. 

The three advertising forms: 

1. text advertising, which is visible in the upper part and lower part where ads appear.
2. Brand publications or posts.
3. Inmail. These are direct messages between contacts with a high level of effectiveness and it depends on your objectives, be it business, invitation to a webinar or registering for an event. 

Additionally, it should be noted that handling professional topics requires a language according to the environment. The use of images must be very well managed to generate credibility and achieve the expected results. 

Faced with the specific issue of budgets, it can be much more expensive than Facebook, Instagram and AdWords since it involves highly segmented audiences and the quality of the information is presented as highly verified and updated. 

What budget does LinkedIn recommend?

It recommends that guidelines should be made from $10 and up. In the case of Facebook and Instagram, small budgets such as $1 and up, are allowed. The costs per click or interaction on LinkedIn are much more expensive compared to other platforms. 

Linkedin campaign goals: 

• Brand recognition. The goals are the reproduction of videos, views or impressions so that more people see an ad. 
• Conversions, leads or potential customers. This is becoming more expensive. From 5, 10, or 20 dollars is the cost of lead because it is a highly qualified prospect. 

In this process you should think very carefully about which platform to start with advertising. Depending on your product or service and the industry you are in, it will be more convenient to start with Facebook and Instagram, with AdWords or use LinkedIn. 

Start your strategy by analyzing where your potential customer is and then choose the platform to define your budget according to your objectives, whether it is positioning, or conversion. 

Do not forget to make continuous improvements to your ads, identifying the factors that have served and testing different types of ads and audiences to obtain an ideal performance of the campaigns. 

Always remember: measure, analyze, optimize and repeat to maximize your investment in social networks. 

If you want us to deal with a specific issue or need advice on digital campaigns, you can contact us on our networks or through our email info@upideas.us.

We invite you to watch the full video here and join us this Thursday for our next #CreativeTalks session with Up Ideas Agency.

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