Social media advertising costs are constantly changing. A variety of factors, including digital marketing trends, cause the cost of social media to fluctuate. As of 2023, inflation is another curveball thrown into the mix.
This is a problem. To effectively budget for social media advertising, you need to be able to estimate the costs involved in that spending.
So, how much does it cost to advertise on social media in 2023?
In this guide, we’ll break down social media costs by platform. We’ll also provide you with best practices to reduce your overall advertising costs in Australia and elsewhere.
What costs are involved in advertising on social media?
What exactly are you paying for in social media advertising?
Social Media Advertising Acronyms
|What you pay when a viewer clicks on the ad.
|CPC… the other one
|The final amount you pay for a conversion (sale, sign up, etc.).
|An advertising model in which advertisers pay publishers based on the number of clicks an ad receives.
|Cost-per-mille / thousand impressions
|The amount you pay for 1,000 ad impressions.
|The amount you pay per lead (email sign up, free trial, etc.).
|CPL … the other one
|The amount you pay for every like an ad receives.
|The amount you pay for one view of a video ad (Note: what counts as a view can differ based on the platform).
|The total cost of acquiring a new customer. All costs are to be included, not just advertising costs.
|CPA… the other one
|How much you pay when a user takes a specific action, such as signing up for an email list or making an online purchase.
|How much you pay for each engagement (like, share, etc.) with your ad.
|The amount you pay for a new follower to your page or profile, depending on the platform.
|A directive asking users to perform a specific action, such as make a purchase or opt in to an email list.
|The percentage of people who clicked on your ad.
|The percentage of people who performed a specific action (a conversion). That action can be anything from making a purchase to signing up for a free download.
|The percentage of people who engaged with an advertisement divided by the total number of people who could have engaged.
|LTV (or CLV)
|Lifetime value (of a customer)
|The total amount of revenue the average customer generates over the course of their relationship with you.
|The return you received from an ad campaign divided by the amount you spent.
|ROAS or ROA$
|Return on Advertising Spend
|A measurement of how much revenue you generate for each dollar spent on advertising.
|When a user clicks on an ad and then performs a conversion action.
|When a user views one of your ads but does not click on it. However, they later return to your site and perform a conversion action.
Price list for social media advertising
How much does it cost to advertise through platforms like Meta/Facebook, Twitter or Instagram? When we talk about social media marketing costs, we’re referring to the cost per click (CPC). That’s the amount charged by each platform every time a user clicks on a display ad. Below are the average costs for advertising on each platform.
|Average advertising cost
|$6.40 per click
|$0.50 – $2.00 per click
|$0.50 – $1.00 per click
|$0.01 per view
|$0.03 – $0.30 per view
|$5.26 per click
What factors affect social media advertising costs?
The cost of advertising on social media in Australia depends on the services you need. If you already have a strong team within your company, that will reduce the amount you need to spend. If you don’t have an in-house team and you need help with your social media advertising, a digital marketing agency can help you.
The services offered by an agency can be broken down into different stages: planning, design, and execution. Typically, services are offered in terms of packages, with each package including a variety of services. The more services you need, the higher the cost.
Here are the general factors that impact the cost of advertising on social media in Australia.
The cost of your social media advertising campaign will depend on how much you’re willing to spend. The higher your budget, the more people who will see your ads. Your marketing goals will influence the amount needed for your budget. For example, it will probably cost more to generate conversions than to create general awareness.
Your target audience will also influence the amount you spend on social media advertising. If you target a more niche audience, it will be more expensive than targeting a larger and broader audience.
Location also plays a role in the overall cost. Where is your target audience located? Different countries have different prices for social media advertising. For example, if you’re targeting an Australian audience, the cost of advertising may be higher than if you were targeting a broader international market.
2. Content creation
There are two elements to content creation:
- Media (AKA Creative)
Copy refers to the written content that accompanies your ads. It’s important to have well-written copy that resonates with your target audience. Good copywriting can help drive conversions and build trust with potential customers. The cost of having high-quality copy will depend on the complexity of the project, as well as how much research and writing is needed.
Media refers to the visual portion of an ad, whether that’s a picture or a video. Generally, you’ll need to hire a professional designer or video editor for this part of the project. Depending on your budget, you may be able to get away with using free stock images and videos, or even creating your own visuals.
The copy and the media should work together to create a compelling, clickable ad. The cost of creating this content will depend on the complexity of the project, as well as the services you need to complete it.
3. Social media platform
The social media platform you choose will also affect the cost of social media advertising. Each platform has their own unique audience. For example, TikTok caters primarily to Gen Z. Instagram caters to Millennials, and Facebook caters to Boomers and Millennials.
You should also consider the cost of advertising on each platform. For example, Google Ads and Facebook Ads often have higher CPCs than Instagram ads. It’s important to do your research and understand how your target audience uses different platforms.
It’s also important to consider the features offered by each platform. Some platforms offer more advanced targeting options than others. You’ll need to weigh up the features offered by each platform and decide which one best fits your needs.
Finally, each platform has different strengths in terms of content type. Instagram and TikTok are heavily visual, with the copy playing a secondary role. Facebook and LinkedIn, on the other hand, rely heavily on both the text and the visual elements.
You can’t manage what you don’t measure, and that principle applies directly to social media advertising. It’s essential that you measure the effectiveness of your ad campaigns. This will help you make informed decisions about where to invest your budget in the future.
The cost of analytics depends on how much data you need and what type of insights you’re looking for. Generally, more advanced analytics packages cost more money. However, it’s important to have a good understanding of your audience so that you can make informed decisions about your campaigns.
There is software that can help you analyse your social media ad campaigns. Some of it is listed in our “top marketing apps” blog post. If you want to dive deep into the data, you may need the help of social media experts.
A search expert can help you by supplying popular hashtags and keywords to embed into your social media captions. Hashtags make your content more discoverable. A search expert may also help you understand the algorithms used by different social media platforms to determine which content is seen by which users.
The cost of hiring a search expert will depend on their experience and expertise. Generally, their services will include researching popular hashtags and keywords, as well as running competitive analysis. They can also help you optimise your content to ensure it reaches the right people.
Branding is a key element in your social media strategy. It helps to create a sense of trust and loyalty with customers.
A branding expert can help you develop a consistent voice across all platforms, as well as create visuals that match your brand identity.
The cost of working with a branding expert will depend on the complexity of the project. They may charge hourly or by project, depending on what services they provide. It’s important to get a quote before hiring them, so you know exactly what the project will cost.
Megaphone offers branding packages on a case-by-case basis. Contact our experts if you’d like a quote.
7. Ad relevance
The cost of advertising on social media in Australia hinges on the relevance of your ad to your audience. Ad relevance is key to ensuring your message reaches the right people and connects with them on a deeper level. The more relevant your ad is, the more likely it is that users will engage with it.
To ensure your ads speak directly to your target audience, you need to understand their behaviour, needs and interests. You can do this by conducting market research, using analytics tools and hiring experts who can provide insights into your audience.
The cost of advertising on social media can vary greatly, depending on a number of factors. It’s important to do your research and understand which platforms your target audience uses the most. You’ll also need to consider the features offered by each platform and how much data you need to measure the effectiveness of your campaigns.
If you want help with understanding your target market or running effective ad campaigns, contact Megaphone for a free consultation ($1,200 value).
Frequently Asked Questions (FAQs)
How much does it cost to advertise on social media?
The cost of advertising on social media will depend on your budget, the platform you are using, the type of ad you want to run, the relevance of your ad to your audience, and other factors. Generally speaking, more advanced analytics packages and detailed search analysis will cost more money. Additionally, if you need help from experts in order to optimise your campaigns or understand your target market, these services will also add to your overall cost.
What is the best way to reach my target audience?
The best way to reach your target audience on social media is by understanding their behaviour, needs and interests. This can be achieved through market research, using analytics tools like Shield, and by hiring experts who understand your audience.
Additionally, it’s important to ensure that your ad is relevant to your target audience and resonates with them in order for it to be successful.
Do I need help from experts in order to optimise my campaigns?
Yes, you may need the help of social media experts if you want to dive deep into your analytics or understand your target market. These experts can provide insights into how you can make the most of your campaigns and reach the right people. They may also help you optimise your content to ensure it is seen by the right users. The cost of working with social media experts will vary depending on their experience and expertise. Get in touch with Megaphone for a free strategy session (worth $1,200).