What's the ROI on Social Media Marketing

What's the ROI on Social Media Marketing

Social media advertising budgets have doubled worldwide over the past two yearsHootsuite, a platform for managing social media, estimates that $31 billion was spent on social media in the U.S. in 2016, and approximately 86% of those funds went to Facebook. Are businesses seeing a return on their investment in social media advertising? Not likely, finds two recent studies. Splashlight, a visual content creation company, found that social media influences less than 33% of U.S. consumers when making purchasing decisions. Those findings mirror another study by Lithium Technologies that found most consumers object to being targeted by brands on their social media feeds.

Facebook advertising can work, but it requires a significant investment of resources, expertise and time that most likely are beyond most small businesses’ budgets. One of the reasons why most people don’t want to be interrupted on their Facebook page with unwanted advertising is that Facebook is a platform to connect with friends and not brands. For smaller businesses to successfully advertise on Facebook the messaging needs to appeal to the interests of the target audience.

An online cabinet etailer generated more than $25 million in sales by creating Facebook pages that focused on cooking, coffee, gardening and golf. The key to this success story was laser focus on the desired audience’s lifestyle and interests and content that invited engagement. In the case of kitchen and bath showrooms, the audience is homeowners that would benefit from a new kitchen or bath. There is a strong likelihood that they are neighbors of existing customers. Remember, bird of a feather flock together.

Facebook has many tools and services to reach your target audience. When you identify your target audience, you also need to remember that Facebook is a medium your audience primarily uses for connecting with friends and not a place for making purchasing decisions. That means you need to focus on what the target audience wants instead of what you want your target audience to do. Need additional guidance? Come to the BKBG Annual Conference and take advantage of Locallogy’s Clive Clifford and Bryan Sirak’s expertise and guidance for getting the best return on your digital marketing efforts at their Your SEO Strategy Seminar, Thursday, October 5.

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