Social media advertising has evolved from an entertainment tool to an increasingly popular marketing medium for businesses to reach and engage with their target audience. In fact, in 2022, a whopping 92.1% of marketers in companies larger than 100 employees were expected to use social media for marketing purposes, according to Statista.
With the vast number of people using social media platforms every day, businesses have the opportunity to connect with a large and diverse group of potential customers. It’s simple, really; if you’re a marketer and you’re not taking advantage of social media, you’re missing out on a LOT.
In this article, we will explore the benefits of social media advertising for businesses.
Simply put, social media advertising refers to using social media platforms, such as Facebook, Instagram, LinkedIn, and TikTok, to promote products or services. The process can involve both creating and placing ads on social media platforms, as well as using those platforms for marketing and customer engagement.
Social media advertising can offer several benefits for businesses, including:
1. User-friendly interfaces
Every major social media platform available today offers a user-friendly interface that’s easy to understand and use, no matter your technical background. Facebook has Ads Manager for Facebook and Instagram ads, LinkedIn has Campaign manager, etc.
Not only that, but those platforms will literally guide you through every step of the ad set-up process, and the sheer number of marketers using those platforms means that you can practically find a solution for any problem you face within minutes.
2. Social media advertising benefits: Targeted reach
Social media platforms allow businesses to target specific demographics and interests. That means you can reach the people who are most likely to be interested in your products or services.
3. Measurable results
Social media platforms offer a plethora of analytics and reporting tools that allow you to track the success of your ads and see how they are performing almost instantly. This makes it easy to see what’s working and what isn’t and to adjust your strategy accordingly.
There are other benefits to analytics tools as well. You can use them to better understand brand sentiment and, therefore, create organic content that resonates with your audience.
When advertising online, one of the biggest concerns businesses have is, “how much will it cost?”
Thankfully, social media advertising can be more cost-effective than other forms of advertising, as you can set a budget and target specific audiences. Say goodbye to throwing wads of cash down the drain to reach all kinds of audiences!
Not only that, but social media platforms allow you to experiment with different ad options, formats, placements, etc. By doing so, you can uncover the most profitable (and affordable) advertising option for your brand. That’s how the Bank of Montreal achieved a 29% lower cost per incremental conversion, as seen in a case study published by Meta.
Furthermore, when marketing on social media platforms, you only pay when someone has actually clicked on your ad (pay-per-click or PPC) or at least seen it (pay-per-view or PPV). This can help you get the most out of your marketing budget.
5. Increased brand awareness
Social media advertising can help increase brand awareness and reach a wider audience. By promoting your products or services on social media, you can get your brand in front of people who may not have heard of you otherwise.
6. Improved customer engagement and loyalty
Social media advertising can help improve customer engagement by allowing you to connect with your audience and get feedback on your products or services. This can help you build trust and loyalty with your customers.
Not only that, but you can use social media advertising to share testimonials or case studies to demonstrate customer satisfaction.
Finally, by taking advantage of remarketing tools offered by Facebook and other social media platforms, you can make sure that your products or services are always front and centre of your customers’ minds.
7. Social media advertising benefits: Get more leads
Most social media platforms offer advertising options that are geared toward generating more leads for your business.
- Facebook, for example, offers lead-form ads. Those ads can be used to encourage people to send you their emails, sign up for your online event, etc
- LinkedIn offers something similar, which allows you to generate more leads in the B2B sphere. Say, for example, that you’re an eCommerce brand looking to connect with distributors. In that case, LinkedIn can be a goldmine for targeted leads. Check our guide on how to generate leads with LinkedIn ads
8. Higher conversion rates
This is probably the main reason brands use social media advertising since conversion rate is one of the most important metrics in digital marketing.
Generating more conversions is actually a by-product of all the aforementioned social media advertising benefits.
How, you ask?
Well, for starters, by using social media platforms, you get to target users based on criteria that you’ve set. By doing so, you can rest assured that your ads are delivered to people who are likely to be interested in your products and services. The more interested people see your ad, the higher the chance of conversions.
Not only that, but by using the retargeting options offered by these platforms, you can keep your audience engaged and encourage them to re-purchase from you.
What’s the ideal conversion rate?
When running a social media advertising campaign, keep in mind that the ideal conversion rate to aim for will depend on different factors, including your industry, chosen platform, etc. Here are some conversion rate benchmarks to give you an idea:
- Grocery: 6.8%
- Pharmaceutical: 6.8%
- Consumer electronics: 1.4%
- B2B: 0.6%
- Financial services: 0.2%
Different niches and industries aren’t created the same so keep that in mind when setting your marketing goals.
9. Social media marketing can help with SEO
Believe it or not (well, you better do), social media advertising can actually help with search engine rankings. That’s because social signals are an indirect ranking factor.
How is that?
Well, when people engage with your ads and organic content on social media, there’s a higher chance that they’ll click on your links and view your website, and that helps with SEO. That’s pretty much it.
We’ve covered this topic in detail in this article on how Facebook Ads can help with SEO.
10. Social media advertising yields results faster than other mediums
Compared to SEO and traditional marketing mediums, social media advertising is much, much faster when it comes to generating tangible results.
After all, when it comes to SEO, you have to rank your pages on Google and other search engines to start seeing results. That process can take months. Traditional marketing mediums aren’t that different. That’s because there’s no way to target specific audiences. You basically have to throw things at the wall and see what sticks.
Social media advertising, on the other hand, can get you more conversions and leads almost instantly (as soon as you get the gist of your target audience).
Going through the benefits section, you must’ve been thinking, “wow, social media advertising is the best. I should start using it immediately!”
Well, you definitely should, but before doing so, check these potential drawbacks to social media advertising:
It’s a commitment
One potential drawback of social media advertising is that it requires significant time and resource commitment.
After all, developing and managing a campaign on any social media platform requires a dedicated team, individual, or outsourced agency (wink wink!) to create content, track performance, and make adjustments as needed. Furthermore, if you decide to embark on a social media advertising campaign, your job doesn’t end the moment you click on “publish”. This can be time-consuming and may not be feasible for businesses with limited resources.
Possible ad fatigue
Additionally, social media advertising can be subject to ad fatigue. Ad fatigue is when users become desensitised to seeing the same ads over and over again. This can make it difficult for businesses to maintain the effectiveness of their ads and may require frequent updates to keep them fresh and engaging.
It’s always evolving
Finally, social media advertising is subject to the ever-changing algorithms and policies of the platforms themselves. That can make it challenging for businesses to predict how their ads will perform and make strategic decisions about their marketing efforts.
Social media advertising: Tips and tricks
If you want to reap the social media advertising benefits detailed above, follow these tips and best practices:
Have a well-defined goal
Before you start your social media advertising campaign, it’s important to define your marketing goals and objectives. This will help you determine the right platforms and strategies to use. It will also allow you to measure the success of your campaign. After all, there’s a big difference between a campaign aimed at amassing sales and one aimed at raising brand awareness around a specific brand or issue.
Pick the right platforms
Different social media platforms have different audiences and features. That’s why it’s important to choose the platforms that are most relevant to your business and target audience. Here’s a detailed list of all the popular social media platforms and their relevant stats by SEMrush.
All the popular social media platforms offer advanced targeting options. They allow you to reach specific users based on demographics, interests, behaviours, and more. Utilising these options can help you reach the right people with your ads. As mentioned above, taking advantage of advanced targeting options will result in a higher conversion rate as well as a decreased ad spend.
Create engaging content
To be effective, your ads should be visually appealing and convey a clear message. Use strong visuals and compelling copy to grab users’ attention and encourage them to take action. If you’ve never tried copywriting before, check out our guide on how to write a Facebook copy the right way.
Besides appealing visuals and engaging copy, your ads should also keep up with the latest trends. On platforms like TikTok and Reels, new trends pop up every day, and if your target audience uses such a platform, it’s essential to keep them engaged with trendy ads.
Test and optimise
Don’t be afraid to experiment with different ad formats, targeting options, and creative elements to see what works best for your business. Furthermore, use the data and analytics provided by the platforms to continually optimise and improve your campaigns.
Monitor and respond
Social media advertising allows you to interact with your audience in real-time. Make sure to regularly monitor and respond to any comments or messages to maintain a positive reputation and build relationships with your customers.
Doubting that social media interaction can have an impact on sales?
Well, according to a report by Sprout Social, as a result of positive social media interactions with a brand, consumers are more willing to:
- Make a purchase from a brand (78%)
- Pick a brand over the competition (77%)
- Recommend a brand to friends and relatives (76%)
- Spend more buying from that brand (72%)
- Develop a stronger bond with a brand (70%)
To take full advantage of social media advertising, you need to master several skills, including copywriting, design, ad optimisation, etc. Juggling all of that alongside running your business can be challenging, especially if you don’t have a big budget. Worry not, though, as we’re here to help. Just book a discovery call with us today!