Social Media Marketing: Get the Most Bang for Your Buck
Globally, digital ad spending is projected to hit roughly $385 million in 2020, outpacing other traditional avenues in the advertising market for the first time in history. Directories, print, and tv are just some of the markets that were on the decline in 2019. With Google holding the top position in the digital market as a single company, the social media ad market is becoming more and more popular.
To stay on top of the fast-paced social media advertising game, let's take a look at which platforms give you the most bang for your buck. Because the average dollar spent can vary widely among different industries, we will look at the average overall spending in the market in terms of CPM (Cost Per Mille) and CPC (Cost Per Click).
Facebook is by far the biggest social media advertising platform, generating roughly $69 billion in ad revenue in 2019 (with the help of its fellow company Instagram). Facebook also happens to be the most popular social media site, with Instagram trailing behind in sixth place.
Facebook has a minimum daily budget for impressions starting at $1. Clicks, likes, or views daily budgets start at $5 and $40 per day for application installations or offered claims. The average cost per click is about $0.97 and the average CPM is about $7.19 per 1k impressions.
On the other hand, Instagram is ranking in at $3.56 per click and $7.91 per 1k impression. They both have similar CPM but Facebook is roughly 3.6 times more cost per click.
The social media platform made $1.06 billion back in 2018, and by the end of 2019, the company was at $1.53 billion. There are on average 360 million active monthly users and 210 million daily active users. In mid-2018 the company reported an average CPM of $2.95, but with the release of new advertising features like programmatic selling and longer video ads, CPM periodically surged to a high of $10, with an average of $3-$8.
With about 330 million users as of late 2019, Twitter ranks in about 11th place in most popular social media platforms. Twitter brought about $3 million back in 2018. With no minimum budget, the site reported an average CPM at the end of the third quarter of 2019 at $6.54. In the second quarter of 2019, the average CPC on the platform was $0.33.