Perhaps you have previously used SEO and even Google Adwords to generate revenue for your business. If so that is great, but you may be missing out on the many benefits that social media can offer your business.
It may be that you don’t believe it would be a suitable platform for your industry. Or perhaps you simply feel that you don’t have enough hours in the day to manage all these different social media accounts. Or perhaps you simply hate social media altogether, which is okay as well!
But there are some very good reasons that businesses should consider using social media as part of their marketing strategy. This applies even if your business is one which you may not think that people look for on social media. You would be most likely pleasantly surprised to hear that many types of businesses use social media to attract new clients.
The following are some reasons why you should consider a social media campaign to complement your existing marketing efforts.
Large User Bases
Many of these social media platforms have extremely large user bases, enabling advertisers to reach an enormous amount of potential customers.
In Australia specifically, Facebook has 15 million active monthly users, and instagram has 9 million. This represents an enormous opportunity for any business to market their products to millions of consumers. Globally, Facebook reached a total of 2.38 billion users in 2019.
Whether you are a small local business looking for clients within 10-15km of your premises, or a large company that operates Australia wide, there is enormous potential to utilise social media to grow your customer base and revenue.
When it comes to Facebook & Instagram, one of the best features available is the level of targeting available to advertisers.
One can zero in on potential customers using targeting strategies such as gender, age, interests, location. This makes it extremely easy to ensure that you are only targeting those who are likely to make a purchase, ensuring your marketing dollars aren’t going to waste. Using these types of strategies allows advertisers to zero in on only those customers who are most likely to purchase their products.
It can even go further if you have an ecommerce store. By using the tracking pixel on your ecommerce store, Facebook & Instagram’s systems are able to identify customers that are making purchases at an online store and match them to their system. This can be used for for remarketing purposes, as well creating what is known as lookalike audiences.
Lookalike audiences are an extremely effective way for a business to substantially grow their customer base whilst making a high return on investment. Facebook’s algorithm searches their user database and identifies other similar people who fit the profile of those buying from your store and will serve advertisements to them. This is an extremely powerful feature as it will allow for a rapid expansion of a businesses customer base without marketing to people who are not likely to be interested in the products or services on offer.
One of the main benefits of social media marketing is the fact that it is an extremely cost effective advertising medium. The CPM is significantly lower compared to traditional media. The average cost per click for all industries on Facebook is only a small US$1.72. This is below what could be expected on Google Adwords. Below you can see the average cost per click by industry in US dollars.
There have been certain arguments put forward that traditional media is more cost effective in terms of it’s ultimate reach per person. This is true, however, there is a catch. Traditional media is not targeted at a group of individuals who have expressed interest in businesses or products similar to yours. They are therefore far less likely to be interested in the products your have to offer as a percentage of the total reach.
These cost benefits feed directly into your businesses’ bottom line. Campaigns run on social media often return an extremely high ROI when compared to other forms of media. It is often considered that an return on investment of 5x is good. We have run various campaigns for clients around the 6-7 mark using social media advertising. This is especially powerful when selling products that have a high net margin, as a business can supercharge their profits by simply increasing the marketing budget of their social media campaigns. The only limit is how many products they are able to sell!
Increased Brand Awareness
Putting your business in front of a large number of potential customers on social media is extremely cost effective, and will greatly increase a businesses’ visibility. You should remember that many of your customers are on social media. Given that advertising relies on memory and consumers being constantly exposed to your brand, it is a must for any small business to ensure they have a presence on social media in this day and age.
Many people follow companies on social media, including many of your current customers who may share your business with others. Any sharing of your content or pages by others results in a pool of their friends seeing your business. It is entirely possible that some of these people may never have come across your business had they not encountered it on social media.
Of course, social media platforms also have a chat functionality whereby businesses can answer questions and inquiries by potential customers. It may seem somewhat overwhelming to have to deal with so many different points on contact across different social media platforms all at once. Luckily, there are various programs are available to make it easier to accomplish this. One of those is Buffer, which allows the scheduling of posts as well as the ability to reply to all conversations in a single interface. By ensuring that your company pages are well presented and enquiries via the platform are answered promptly, you basically have another storefront attracting new business for you.
By investing relatively little time and money, it is possible to enormously increase exposure.
These are just some of the many benefits for businesses that take a proactive approach to ensuring that they have a robust and active presence across social media. There are many already doing so, meaning that those who are not currently taking advantage of this opportunity to grow their business should do so. It may surprise you that even tradies manage to pull significant amounts of work through these channels.
No matter the nature of your business, social media is most definitely a marketing opportunity that you most certainly need to be utilising to it’s full potential!