Costing in Social Media

1. Costing in
Media
PRESENTED BY: BHOOMI AHUJA

2. Table Of Content
 Cost Per Impression (CPI)
 How Much Does It Cost To Outsource Social Media Marketing?
 How Much Does Outsourcing Social Media Advertising Cost?
 How Much Does Social Media Strategy Cost?
 Does Business Need A Social Media Strategy?
 Why Does Social Media Marketing (And Strategy) Cost So Much?
 Conclusion

3. Cost Per Impression (CPI)
Cost per impression (CPI), or "cost per
thousand impressions" (CPM), is a term
used in traditional advertising media
selection, as well as online advertising and
marketing related to web traffic. It refers to
the cost of traditional advertising or internet
marketing or email advertising campaigns,
where advertisers pay each time an ad is
displayed. CPI is the cost or expense
incurred for each potential customer who
views the advertisement(s), while CPM
refers to the cost or expense incurred for
every thousand potential customers who
view the advertisement(s).

4. How Much Does It Cost To Outsource Social
Media Marketing?
The shortest, easiest (and, admittedly, the
least satisfying) answer to this question is
this: it varies – a lot. Depending on the
experience level of the social media agency
you hire, the size of your business, the suite
of services you require, and a bunch of other
factors, professional social media marketing
can cost you anywhere from $1,000 per
month to $20,000 per month.

5. How Much Does Marketing With Twitter
Cost?
Launching a new Twitter account, complete with setup
and outsourcing content creation/consumer interaction (all
140 characters at a time), costs an average of $2,000-
$4,000 per month – and that’s just for Twitter. With
that said, the total price range was $1,000-$7,500 per
month.
What if you already have an existing Twitter account, but
need some help to take it to the next level? Restructuring
an existing Twitter account with “limited coaching” to
achieve client goals is still going to cost you
between $1,000-$2,500 per month, with some charging
as much as $4,000 per month.

6. How Much Does Marketing With
Facebook Cost?
The cost of marketing with Facebook can run a bit
higher than that of Twitter alone. To set up a new
Facebook account and provide limited ongoing
training to business partners, online PR agencies
charge an average of $2,500-$5,000 per month,
with some going as high as $9,000. However, for
most businesses it’s a good idea to bundle these two
together (and probably to add on a third and even a
fourth channel), which will not only help you
increase your audience, but can get you a deal on
the price as well.

7. How Much Does Marketing With Other
Social Media Channels Cost?
When it comes to social media marketing, Twitter and Facebook are
definitely the top two options for businesses. If you’re just getting started,
or if you’re working within a tighter budget, we’d definitely recommend
that you start there. Every business is different, but from what we’ve seen
with our clients Twitter and Facebook tend to provide the greatest ROI, and
customers in general will expect that a business has an active profile on
both platforms.
However, if you’d like to also do social media marketing on channels like
Instagram, Pinterest, LinkedIn, and SnapChat, those additional channels can
easily cost you $1,000 or more for each one that you add on. That’s a big
investment, so you obviously want to be really strategic about which social
media platforms you choose and figure out what your path to ROI will be
by adding each additional channel.

8. Instagram Marketing
Instagram is a highly visual
platform that focuses almost
entirely on images. If you’re a
fashion brand, a company that
restores classic cars, or any
other kind of business that can
consistently create visually
compelling content, then
Instagram should definitely be
on your radar. However, if
you’re an accountant, probably
not so much.

9. Pinterest Marketing
Pinterest is another image based
platform that allows users to
organize images from all over the
web in one place. We’ve seen this
be a valuable platform for all
kinds of different clients, but it’s
not for everyone. One of the
things that makes Pinterest
unique is its demographic
makeup, which is predominantly
upper-income and female. If
that’s your target audience, you
definitely want to give Pinterest a
look.

10. SnapChat Marketing
SnapChat is the cool new kid on the
block, and with over 100 million
daily users, lots of brands and
businesses are looking to leverage
this platform as part of their social
media marketing strategy. However,
of all of the social media platforms,
this one is by far the most
idiosyncratic. SnapChat allows users
to send out images and 15-second
videos to their followers that
disappear either as soon as they are
viewed or after 24 hours — which is
obviously not ideal for most social
media marketing purposes.

11. How Much Does Outsourcing Social
Media Advertising Cost?
 If you’d like to include paid advertising in your social media
management package, that will cost extra, as well. Platforms like
Facebook, Twitter and Instagram all have paid advertising platforms
available, and when done correctly, these social media ad campaigns
can pay off big for your brand, with ROI ranging from growing your
following to increasing website traffic and sales.
 How much should you expect to spend on social media advertising
costs? In general, you should expect to pay anywhere from
between 10%-20% of the total ad buy to have an agency manage
your campaigns for you. If you have a larger budget, you can usually
negotiate a percentage on the lower end of that range. There’s also
usually a minimum monthly social media ad management fee (ours is
$250), so you want to make sure that you’re really ready to make the
investment before you take the plunge.

12. What About Social Media Strategy?
Here’s something to consider: all of the prices that we listed above include status updates
and interacting with customers. You know what it doesn’t include, though? Strategy.
Some agencies charge a minimum of $4,500 per month for Facebook and Twitter
management, but won’t include any strategy behind the efforts. That costs extra, as if
asking for social media strategy is like adding for guacamole to your order. We’re of the
opinion that guacamole should always come with the order, which is why we include
strategy as part of our social media marketing packages (and why wouldn’t we?
Now, we’ll admit that the strategy is the most important part — you’ve got to go into
social media marketing with a game plan and a list of goals, or you’ll never achieve the
ROI you’re looking for. This is the reason you don’t want to outsource your company’s
social media management to the intern who can’t stay off Snapchat. Online PR agencies
know this, so they make sure to charge you for their expertise.

13. How Much Does Social Media
Strategy Cost?
 It’s easy to get fake famous on social media channels, and apparently it’ll
only cost you $6,800. Although it may sound impressive to have 1 million
“likes” on Facebook, your charade will be exposed the second somebody
checks out your page and sees that nobody ever likes, comments or shares
your content.
 Creating a comprehensive strategy for social media marketing and
outsourcing all work for all channels (with a minimum of two social
networks) costs anywhere from $3,000-$20,000 per month, with the
industry average settling between $4,000-$7,000 per month. If you want
the social media agency to start the accounts from scratch and consult on
a 4- to 12-month contract, you’ll pay between $3,000-$15,000 per
month.
 What do they mean by channels, minimum of two? That’s just a fancy
way of saying that the cost includes both Facebook and Twitter…and
there will likely be an upcharge for adding any other channels.

14. Does Business Need A Social Media
Strategy?
 Investing in social media marketing without having a
strategy is like buying a car and not knowing how to
drive. It’s like trying to use a gas grill without a
propane tank. It’s like putting a sweet new
entertainment center in a house without electricity.
We think you get our point.
 Social media platforms are a tool that can help you
market your business, but unless you know how to
use it to generate tangible ROI for your business,
you’re only setting yourself up to waste time and
money. And the truth is that social media strategy is a
lot more complicated and involved than you probably
think.

15. Why Does Social Media Marketing (And
Strategy) Cost So Much?
There’s a pretty common misconception that social media marketing is a quick and
easy way to market business, because anyone can set up a Facebook page, right? But
social media marketing is so much more than setting up profile and sending out
some tweets. From audience and list building, to the right image sizes to use for each
platform, to which kinds of posts convert the best, to leveraging your social media
posts to create PR opportunities…there is an endless and ever-changing list of skills,
tools and best practices that social media marketers have to stay on top of in order to
consistently provide ROI to their clients.

16. Conclusion
It is important for the company to gain visibility for its product. Costing and right
selection of media plays an important role in building ROI of the company. Costing can
affect the revenue of the company. Hence it is important to choose them wisely.

17. THANK YOU