Advertising is the act of promoting, while social media is the range of applications and websites that allow users to socialize with one another through a digital environment.
What is social media advertising? Social media advertising utilizes user information to serve highly relevant advertisements based on interactions within a specific platform. As each day passes, technology becomes more intertwined into people's daily lives. It has now become the norm for people to regularly check their social media accounts throughout the day, and for most, it is the first thing they check when they wake up and the last thing they view before they sleep.
Many businesses have realized that with this high demand for social media why not use it to their advantage for their advertising needs?
This post, brought to you by Stiddle, will outline the connection between social media and advertising and why it is effective for generating revenue.
To determine which advertising methods have performed the greatest, the metric used is called cost per thousand impressions (CPM). The CPM is best defined as the total amount an advertiser pays for 1,000 impressions on their page. Calculation of the CPM is critical for understanding advertising because it displays which channels are producing the highest profit.
A research study found that the average CPM for social media advertising is less than $3, while the CPM of advertising through traditional methods like TV, comes close to $28. This case demonstrates the drastic gap in the cost of advertising through social media versus non-social means.
Whether you are personally familiar with social media or not, the fact is that the majority of consumers are plugged into some social media platform.
In fact, nearly 60 percent of the world's population is already online, and trends suggest that more than half of the world's total population will use social media by the middle of this year. Therefore, why not use people's immense social media consumption for your own advertising strategies?
Furthermore, many have found that by having their business active on social media, it has increased their brand trust with consumers. This is a result of social media providing a way for prospective customers to instantly connect with a business which is a unique aspect in comparison to traditional methods.
Social media advertising also increases the likelihood for your business to receive greater site traffic.
One found that after the use of social media for their advertising, they saw an increase in their website traffic by 95% in just eight months. This goes to show the direct impact social media advertising has on the enhancement of traffic results.
Now that we have explained a few reasons why advertising on social media is highly effective let's dive into some social strategies.
Since there are numerous social media platforms that you can choose from when first beginning your social media ads, it is critical to research the type of market your business is targeting.
For instance, 84% of Facebook's users are those with an average age of 25-30 years old. While 75% of Instagram's age demographic is between 18-24 years old. For this reason, it is necessary to understand where those who will likely be interested in your products/services are digitally located.
Before you invest in your social media advertisements, it is also essential to outline your business's plans and the outcomes that you would like to see as a result.
This is a factor that some blow-off; however, it is an ultimate game-changer. Preparation is key and is important prior to your ad execution.
After determination of which social media channels you will be focusing on, the next step is figuring out how to attract consumers with your ads.
You can even use tools; such as the software we have at Stiddle that were created to help businesses like yourself. Once you sign up, we do all your advertising work for you by running pre-targeted ads to find your intended audience using AI.
The terminology for the calculation of your business's profit is the return on investment (ROI). A high ROI means the investment's gains compare favorably to its cost.â€
Just as important as it is to construct your business's goals, it is equally vital to calculate your business's ROI at the end of each quarter. After analysis and understanding of what advertising methods provide you the greatest results, this consciousness will assist in your business's further strategizing.
Being certain that you are focusing on the right social media platforms is imperative for future campaigns.
Now that you understand how heavily advertising and social media are connected, we hope you utilize it for your own advertising measures!
Stiddle wishes you the best!
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