When a business owner talks about whether something is expensive or not, the actual price of the product or service should not actually play into the discussion as much as one might think. After all, if you could spend $500,000 on a service that was guaranteed to make you $5 million, is it expensive to you?
Unfortunately, many business owners choose to look at advertising on social media from the perspective of costs and expenses without considering the goodwill as well as the hard revenue that such a service can generate. Not to mention that most of today’s customers expect a business to have a social media presence: Those that don’t are immediately ignored or reviled.
Using Social Media for Marketing Your Business
Before you ask if advertising on social media is “expensive,” you should consider exactly what using social media for marketing your business will bring you. Are you in an industry that demands a social presence with your customers every single day? Hint: The answer is probably yes. In a survey conducted by Northwestern University, a full seven out of 10 customers expected that complaints made on Facebook should be answered by a company. The number of companies that actually perform this service is less than one out of four (25%).
Can you really afford to lose touch with these customers?
Social media gives you the ability to immediately expand your local business into a global one. Don’t be fooled: Simply putting your company on the Internet does not in any way guarantee that you will increase your revenue or even your visibility. However, if you are not making strides in social media, you have put yourself behind the eight ball, because we can assure you that all of your competitors are.
How to Determine if Social Media Advertising is Expensive
A full assessment must be conducted in order to determine if a social media expenditure is actually expensive. What do you expect to receive from the cash outlay? Is the marketing targeted to a customer base that will likely make a purchase? Is your social media strategy connected to a larger sales strategy that will engender loyalty or at least grab an email from a potential customer for the expense of exposure?
You must put a value on things that are not always able to be quantified when you try to assess the value of social media. For instance, how much is an email really worth? If it is an opt in email, it may be worth more than an email that you got from a hard sell. There is also the time value of resources such as emails: People tend to forget over time. Are you ready to take advantage of the visibility that you receive from a social media campaign? If not, then you may want to get the rest of your sales pitch in order before you actually spend money. Doing things the other way around is like sending the bride out when her wedding dress is only halfway on!
The question when determining expense and social media is not, “Is it expensive?” If you are a start up company, of course it is. Printing up business cards may be expensive for you right now. However, the correct question is this: “Will social media allow me to remain in business?” The answer to this question, the correct one, is usually yes.