Social Media Spending Reaches Record Highs. Ask These Questions To Ensure You have The Right Strategy.

The Covid-19 pandemic has lead to businesses shutting down, declining revenue and economic recession. Many in the social media marketing field have been uncertain about how this would impact budgets. But according to the latest CMO Survey spending on social media marketing has grown to record levels with a 75% spike since February 2020.

How Covid-19 Influenced the Importance of Marketing in Companies
The CMO Survey (https://cmosurvey.org/)

Social media spending reaches highs predicted for years.

The percent of marketing budget spent on social media has hovered around 10%-13% since 2014 while marketers always predicted it would reach 20% or higher. With the pandemic spending has finally reached 23% and marketers expect it to stay that high for the next year. The CMO Survey reports this in the context of declining overall budgets and revenue, but as those declined the average percent of revenue spent on marketing increased as most perceived it to be more important during the pandemic.

Why such a sudden and dramatic jump?

Part of this jump is certainly people using social media more. After years of stalled gains eMarketer updated predictions indicating US adults will spend 7 more minutes per day on social networks in 2020 than in 2019. But according to the CMO Survey marketers have also become more confident in social media’s contribution to company performance. After remaining flat for years marketer confidence in social media performance increased 23% from February 2020.

How was social media used during the pandemic?

The CMO Survey reports marketers used social media the most for:

  • Brand awareness and brand building 84%
  • Retaining current customers 54%
  • Acquiring new customers 51%
  • Brand promotions 48%

What does this mean for your social media strategy?

As marketers reduce spending on traditional advertising, they are shifting resources to digital and social. With this increased spending comes higher expectations. Now is a good time to check your social strategy to ensure you are headed in the right direction. Make sure your social media is focused on the right objectives, on the right people, with the right message, and in the right places.

Do you have the right objectives?

Are your objectives focused on building business like the one’s above? Or are your objectives focused on building social media vanity metrics such as followers, likes, comments and shares which make social media an end unto itself? Ensure that your objectives connect to company performance not social media performance.

Are you reaching the right people?

Have you identified a target audience based on a well-defined target market for your product or service? Or are you casting a wide net hoping to catching anyone who could use the product or anyone on the social platform? Look at customer data to determine who actually buys your product not just follows your social account.

Are you posting the right message?

Are you creating unique messages that speak to a well-defined audience with content customize to the social network? Or are messages more generic and content the same across social channels? Optimize content to increase performance.

Is your brand in the right places?

Are you on social media channels because you have been on them for years or because they are popular? Or have you evaluated social channels based on user demographics and engagement metrics of where your focused audience is most active? Take time to evaluate brand social platforms for wasted effort and missed opportunities.

Social media marketing has reached record highs and looks like it will remain there for at least the next year. As spending increases make sure your social media strategy will be as effective as possible.

Social Media Icon Quiz: Test Your Social Media Knowledge.

A major part of any social media strategy and plan is selecting social channels and that can be overwhelming with so many options. Some report thousands of social media sites and apps, Wikipedia lists over 200 and Brian Solis’s Conversation Prism has just under 200 social channel options in 26 categories. To simplify the selection of social channels I divide social media options into 9 categories by key characteristics. In a previous blog post “Social Media Update: Top Social Media Channels By Category” I list the top 3 or more channels in category. Here I go deeper with the Top 100 social media icons to test your social media knowledge.

How social media savvy are you? Take a couple of minutes and write down the names of the social media icons you know from the list of 100 top channels and tools below. How many can you name? (Don’t scroll down for the answers until you are done.)

Social Media Icons

Once you have written down the names, you can scroll down further to check your answers. First, let’s consider why social media is so important to any organization with some of the latest statistics. According to Pew Research Center, as of November 2016, 77% of all online adults use social networking sites with 87% of 18-29 year-olds on social media, 83% of 30-49 year-olds, 72% of 50-64 year-olds and just over half (51%) of 65+ active on social networks.

From “Social Network Use” (2017) Pew Research Center PewResearch.org Retrieved from http://www.pewresearch.org/data-trend/media-and-technology/social-networking-use/

How many social media icons did you know? Add up how many social media names you had right. That is your percentage out of the 100 social icons listed here.

Out of the 100 social media icons you knew __%. Congratulations! As a marketer, advertiser or public relations professional for any brand you need to go where your customers are active. Recent reports indicate 30% of all time online is spent on social media with global adults spending nearly 2 hours a day on social media up from only 15 minutes in 2012. Shockingly teens spend up to 9 hours a day on social media.

Do you have a social media strategy?