Social Media: How Much Should You Spend on your Social Media Marketing?
Do you ever wonder how much time and effort you should be putting into your social media marketing? Wish you could see how much other businesses like yours are spending on their social media campaigns?
I recently stumbled across the results from the twice-yearly CMO survey. Sponsored by Duke University, the American Marketing Association and McKinsey & Company, this report gives businesses a rare insight into what other marketers in the US are doing, especially when it comes to social media marketing.
Budgeting can be one of the biggest challenges for small business marketers. Should you spend more, or less, on your social media marketing and does it really make a difference? Spending too much could be a waste of money, while spending too little could mean falling behind competitors who have bigger social media marketing budgets.
One of the things I really love about this report is that the results are divided between B2B product based businesses and B2B services based businesses. This makes it easier to compare the results directly with businesses like yours.
According to the survey results, when it comes to social media, B2B product based companies spend around 8% of their marketing budget on social media while B2B service based businesses spend more of their overall marketing budget at 12% of the total on social media.
If you are currently spending less than this on your social media marketing, you might want to look at increasing your spend to let you compete effectively with other businesses in your industry.
These figures look set to increase in the future with predicted social media spend increasing to 10% of the total marketing budget for B2B product companies over the next 12 months, and going up to 18% over the next five years. For B2B service based businesses, these figures are expected to increase even further, going up to 16% in the next 12 months and rising to 25% of the total marketing budget in the next five years.
Clearly a lot of businesses believe that social media marketing is worth the investment of a significant portion of their overall marketing budget, but what about concrete results?
According to the report, while there are a small number of businesses that have been unable to show the impact of social media marketing on their business, the majority have been able to prove either qualitatively or quantitatively that social media marketing has an impact.
Product based B2B marketers are more able to prove the impact of social media marketing on their business quantitatively with 54% showing their results this way, while only 33% of B2B services companies were able to show the impact of social media marketing quantitatively.
When it comes to showing the impact of social media marketing qualitatively, 50% of B2B services marketers had a good idea of the impact of social media marketing on their business, while 40% of B2B product businesses were able to say the same.
It’s clear from these results that social media marketing is definitely worth an investment of your businesses marketing budget. Spending a portion of your overall marketing budget on social media can bring both qualitative and quantitative outcomes for your business, making it well worth your while, whether you are product or service based.