Social Media Budgets to Increase by 66%
Social media spend is accelerating, with a 66% increase forecast over the next 5 years.
Today, 13.8% of brands’ total marketing budget is being spent on social media, which is up from 9.8% in August 2017.
Over the next 12 months, 16.3% of total marketing budgets will be spent on social media, rising to 22.9% within the next 5 years*
Social Media’s Impact Not Yet Known
No one is likely to be surprised by these figures, given the prevalence and reach of social media. What is surprising though, is that social media’s commercial impact isn’t known
These figures were taken from the latest CMO Survey, which also suggest that only 24.7% of marketers could prove its impact quantitatively. More interestingly, 39.3% were unable to prove its impact at all.
Advertisers seemingly accept there is a lot to be learned about social media channels and how they can be harnessed commercially as effective marketing channels.
As brands maintain their investment in these channels, we should expect to see marketing teams paying a lot of attention to ways in which they can improve their social strategies.
Planning for Increased Social Media Budgets
A number of factors will drive an increase in social media content expenditure:
- Higher frequency and volumes of activity
- Better production values
- Greater investment in video and more expensive formats
- More use of influencers and celebrities
Solid strategies and planning will still be needed to get these bigger social media spends approved.
Social Media Planning Considerations
Social media has the potential to work on a number of levels. To increase audiences and drive top of funnel traffic. To increase audience engagement and participation with the brand, and to drive direct sales.
Arguably, advertisers should be using social channels to drive multiple KPIs, but each one will require a nuanced approach to the campaign concept and the content used.
We believe one of the biggest challenges will be to scale activity to hit higher volumes whilst maintaining creative integrity and keeping audiences engaged.
These are some of the considerations we recommend to help manage this.
Optimise for Frequency & Volume
Social media concepts need to be built to deliver frequency. Breaking stories down into smaller components is an important tactic to employ for social channels.
Traditional campaign approaches deliver messages in a single format (eg a main campaign video), and this approach doesn’t work in social channels because you get message wear out too quickly.
Tailor messages to audience segments
The need for greater frequency on social media channels provides a perfect opportunity to tailor campaigns or product stories to a wider range of individual segments to make messages really relevant and therefore much more engaging.
Create social conversations that generate powerful insights
Social media doesn’t have to be a one-way street. Audiences are ready to respond and participate with advertisers and in doing so, will share valuable insights into their purchase drivers.
Using content as a source of audience data and insights will help brands position their products more effectively in line with their customer needs.
Social Media Content Planning & Production
If you’d like to work with Soap Studios to improve your social media content performance, please email firstname.lastname@example.org for more information.
Social Media Webinar
If you’d like to listen to more social media planning advice, we’re hosting a live webinar on Thursday 11th October at 1pm GMT. You can register here
* Sources – Marketing Week