So, you're probably wondering what the cost of social media advertising is, right?
Well, you have come to the right place because we are about to answer all of your questions.
This post, brought to you by Stiddle, will provide you a breakdown of tips for your advertising needs depending on which social media platform/s you utilize.
Social Media Ad Cost Terminology
Before we jump into the average social media ad pricing, we will first define some terminology that will better help you understand how the ad process works:
The CPL is a metric used to quantify the relationship between advertising dollars spent and the amount of “likes” one receives from consumers.
Each time a viewer clicks on your ad, the CPC is used–where you get charged for each “click”.
Cost-per-thousand impressions (CPM):
The CPM is the amount advertisers pay after they receive 1,000 impressions on their ad.
Cost per action (CPA):
The CPA is used when a consumer completes an action that you intended for them. For example, if your goal was to have one sign up for your email list and they completed that action, then you would be charged.
The CPV refers to the cost you are charged for every time someone views your ad–this metric is commonly used for video advertisements.
Depending on the type of social media advertising you are looking for, the cost will slightly differentiate.
If you choose to take your advertising into your own hands, then the typical range of prices will be between $200-$350 per day.
Your other option is to utilize professional social media advertising services, such as the ones we provide at Stiddle. Once you sign up, we do all your advertising work for you. Stiddle runs pre-targeted ads to find your intended audience using AI, meaning Stiddle automatically generates high performing campaigns and sales funnels for all businesses (e-commerce, info-product, local business, etc.)
Depending on the professional service you choose, pricing is different; however, at Stiddle we provide multiple options ranging from $57-$137 per month depending on what your business’s advertising goals are.
Budget Vs. Bid
It is also imperative to understand the difference between a budget and a bid in social media advertising.
An ad budget is a determination of how much you are willing to spend on your business campaign. While an advertising bid is a specific amount you’re prepared to spend on a user for them to perform an action on your ad.
It is critical to be aware of both your business’s budget and bid to formulate your social media campaign strategies around them.
Social Media Channels: Average Cost
Depending on the cost metric your business decides to use, and the social media platforms you choose to advertise on, the average pricing differs. Below we will break down the top social media platforms used for advertising and their typical cost.
Instagram offers businesses numerous ways of advertising, such as:
Photo & Video Ads: These ads are used to promote a business through the form of a photo or video format.
Carousel Ads: Campaigns where viewers “swipe to view additional photos or videos in a single ad.”
Collection Ads: Are used to “inspire and help your audience discover, browse, and purchase products.”
Ads in Explore: Are used to “reach people in a discovery mindset by extending your feed ads to audiences who are looking to expand their interests beyond the accounts they follow.”
Cost per thousand impressions (CPM): The average Instagram CPM is $6.70.
Cost-per-click (CPC): The general cost of the CPC is $3.56 per click.
As a whole, the typical amount of advertisers spend on Instagram a month is between $450-$850+.
Facebook is another popular social media channel that offers numerous options for one's advertising needs. Facebook has similar advertising methods to Instagram available to users with the only real difference being the target demographic.
If you are looking for an older aged demographic, Facebook ads will likely provide you better results.
Cost per thousand impressions (CPM): The average CPM is $0.59.
Cost-per-click (CPC): If you utilize the CPC for Facebook, the average cost of an ad is $0.97 per click.
As a whole, Facebook ads have an average range of $400-$1600 spent by businesses per month.
Twitter splits its business advertising into three categories:
Promoted Tweets: These are the Tweets that are “purchased by advertisers who want to reach a wider group of users or spark engagement from their existing followers”.
Promoted Trends: “A Promoted Trend is a 24-hour high-impact takeover of the Trends list on Twitter — where people go to see what’s happening in real-time.”
Promoted Accounts: “Promoted Accounts suggest Twitter accounts that people don't currently follow and may find interesting. They help introduce a wider variety of accounts people may enjoy.”
Cost per thousand impressions (CPM): The average CPM for Twitter is $3.50.
Cost-per-click (CPC): The general CPC is $0.38 per click.
Taking all advertising factors into account for Twitter, the general cost is $450-$850+ per month.
You made it! Now that you have an understanding of the terminology needed for social media advertising and the estimates of how much it will cost to advertise on the top social platforms, you’re now ready to start planning your own campaigns!
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