Using the correct data in a social media campaign is like health food to an athlete—peak performance is impossible without it.
Every social media marketer must present a clear return on investment (ROI) for their campaigns. Whether you work in-house or for an agency, the decisions you make to improve efficiency are critical.
How can you reduce your social media marketing budget while still achieving the same results? It comes down to two essential factors: Data Analytics and Momentum.
Factor 1: Data Analytics for Efficiency
To achieve maximum efficiency, we must focus on the most relevant data sets. These insights guide our actions and allow us to optimise our spending.
The three most relevant data points are:
- CPM (Cost Per 1,000 Impressions)
- CTR% (Click-Through Rate)
- Results (Conversions)
Understanding the Key Metrics
CPM shows us the platform’s actual cost to deliver your ad. It measures the fundamental health of the campaign.
CTR% guides us on audience engagement levels. A high CTR% means your ad creative and targeting are effective.
Results (your final conversion point) tell us the quality of the engagement and if your landing page is optimised.
Optimising Your CPM
Optimising your CTR% and your conversion point will directly improve your CPM. If you successfully reduce the CPM cost, you move to a cheaper rate per 1,000 impressions while maintaining your strong CTR% and results.
A platform gives you a cheaper rate per 1,000 impressions when it trusts you with its audience. A lower CPM then allows you to reach more people with the same budget, or reach the same number of people with a reduced budget. To achieve the very best CPM, you must first optimise your CTR% and your conversion point (your website or landing page).
Factor 2: The Power of Momentum
Momentum is one of the most important, yet often overlooked, factors in any campaign. Momentum takes your campaign from point A to point B at an exponential speed.
Campaign Speed and Efficiency
First, you must identify and optimise the correct data metrics (as outlined above). As you hone the efficiency of these metrics, you gain more and more campaign momentum.
A social media campaign works like a tire rolling down a hill. It needs an initial push, but as it gains speed, its results accelerate exponentially. The campaign eventually hits a “top speed”—its maximum efficiency point—until you increase the budget.
Momentum reduces your total ad spend cost. By hitting your metrics faster, a campaign that might have taken six months to reach peak efficiency could achieve it in four months. The key is required efficiency for the right data points.
Conclusion: Reducing Your Budget with Data
There you have it: two distinct ways to reduce your social media marketing budget using data-driven principles. Focus on optimising your core metrics (CTR% and Conversions) to reduce your CPM and leverage that efficiency to build campaign momentum.
How We Can Help You with Your Marketing Budget
If you’ve read this far, you are clearly serious about growing your business through Social Media and Digital Marketing.
Give us call for a FREE Strategy Session. Our number is 1300 809 935 or message us on Facebook at http://www.facebook.com/attentionexperts. You can also book a meeting with us via our website.