What is the definition of paid social?
Paid social refers to the use of social media platforms to promote content to a selected audience in exchange for payment. Unlike organic social, where businesses rely on non-paid strategies to increase their visibility and reach, paid social involves strategies such as pay-per-click (PPC) advertising, sponsored posts, promoted tweets, promoted Stories, and video ads.
The platforms are generally self-serve and offer advanced targeting options, the ability to upload creative assets and track results, enabling advertisers to reach specific audiences based on demographics, interests, behaviors, and more. This precision helps ensure that your content reaches users who are most likely to engage with it and take desired actions. In the early days of Facebook Ads, this precision was achieved via manually targeting niche audiences; in 2023 the best results for digital advertising are increasingly driven through AI and machine learning.
Why is paid social important?
Since then, paid social has evolved tremendously, with the introduction of new platforms like Instagram, Twitter, and LinkedIn. These platforms have also introduced new ad formats and targeting options, such as sponsored posts, promoted tweets, and LinkedIn-sponsored content.
In recent years, paid social has become an essential part of many companies’ marketing strategies, with social media advertising spending projected to exceed $111 billion by 2022. With the increasing sophistication of ad targeting and personalization capabilities, paid social advertising is expected to continue to grow in popularity and effectiveness.
Organic Social vs. Paid Social
When to use organic social media vs. paid social?
Organic social media should be used for building brand awareness, fostering engagement, and promoting user-generated content. It’s a good approach to start building relationships with your target audience and creating a marketing strategy based on your social profile and content. It’s free, but it may take time for your efforts to yield results.
Paid social should be used when you have a budget to put your content and campaigns directly in front of your target audience and see results quickly. It’s good for promoting special offers, discounts, and deals. You can leverage paid social to generate leads, increase conversions, and drive sales to ultimately grow your business. Paid social campaigns require a budget but have a higher likelihood of getting instant visibility and results.
How to use organic social and paid social together?
Using organic and paid social media together can help to maximize social media marketing efforts. Here are a few examples to use organic and paid social together:
Benefits of Paid vs. Organic Social Media
Developing a Paid Social Media Advertising Strategy
Setting objectives via qualitative & quantitative research
To set objectives for a paid social media advertising strategy, both qualitative and quantitative research can be used to inform the decision-making process. Qualitative research involves gathering non-numerical data to understand the emotions, attitudes, and behaviors of a target audience. This can be done through surveys, focus groups, or social media listening. Qualitative research can help identify the interests and pain points of the target audience, which can inform the messaging and targeting of paid social media ads. The results can map to a customer persona that should be used to develop messages and creative assets that speak to the person’s desired benefits and outcomes.
Quantitative research involves gathering numerical data to measure performance and identify trends. This can be done through analytics tools that track website traffic, conversion rates, and engagement with social media posts and ads. Quantitative research can help set specific goals for the paid social media advertising strategy, such as increasing website visits or improving conversion rates.
Together, qualitative and quantitative research can help set realistic and measurable objectives for a paid social media advertising strategy. By understanding the audience’s interests and behaviors through qualitative research and tracking performance with quantitative research, a comprehensive and effective advertising strategy can be developed. Quantitative realities map to machine learning and AI that now work behind the scenes to deliver the right ad to the right person at the right time. Often, we reach a target cost per acquisition (CPA) or Return on Ad Spend (ROAS) that will be success markers for our social media ad campaigns.
Defining target audience
Choosing platforms
Selecting the right social media platform is critical in reaching your target audience effectively. Each platform has its own demographics and user behavior patterns. For example, Facebook and YouTube might reach a broader and more diverse demographic, while Instagram and TikTok cater more to younger audiences. LinkedIn is a good choice for B2B companies. Consider your audience’s preferences and habits, then choose platforms that align with them. You might also want to consider which platforms your competitors are using, and where your type of content resonates the most.
What about paid social tech setup? Pixels, tracking, Conversions API, and more
To plan the paid social tech setup, there are several key components to consider, including pixels, tracking, first party data access, Conversions API, and more.
First, it’s essential to set up pixels on your website or landing pages. Pixels are small pieces of code that allow you to track user behavior and gather data for your advertising campaigns. You’ll need to install a Facebook pixel to track your Facebook and Instagram campaigns and a LinkedIn insight tag for LinkedIn campaigns.
Next, make sure your tracking is set up properly. This can include implementing UTM codes to track specific campaign parameters and monitoring your campaigns using Google Analytics or other tracking software. Ensure all tracking is set up properly to enable accurate attribution and analysis of campaign performance.
Finally, consider setting up Conversions API on Meta, which allows you to track offline events, such as in-store purchases or phone reservations, by sending data directly from your website or CRM to Facebook ads. This can help you gain a more comprehensive view of your campaign results and improve the accuracy of your attribution. Overall, planning a paid social tech setup requires a comprehensive approach to pixels, tracking, metadata, and more. By setting up these components properly, you can effectively measure and optimize your campaigns to achieve your advertising goals.
Setting Budgets
As previously mentioned, the budget plays a crucial role in the scale and reach of your ads. But let’s add more context to that. When you have defined your customer acquisition cost (CAC) and overall budget, you have a theoretical number of conversions (e.g., sign-ups, purchases) your campaign should generate. However, it’s important to scrutinize this number critically:
- Align with Business Capabilities: The projected conversions need to align with your business’s capacity. Can your customer service handle an influx of new customers? Does your stock level or service delivery allow for a significant increase in sales? Before investing in paid social, ensure that your business is ready to accommodate the projected growth.
- Rate of Learning: Paid social is a realm of constant learning and adjustments. It’s unrealistic to expect your first few ads to hit your target CAC straight away. Thus, a portion of your budget should be set aside for testing and learning. You’ll need to invest in different ad formats, targeting options, and platforms to find what works best. This means your initial CAC might be higher, but with constant optimization and learning, it should decrease over time.
- Sustainability: Consider the sustainability of your CAC in relation to the lifetime value (LTV) of a customer. If you’re spending more to acquire a customer than they bring in value over the time they remain a customer, you’ll be operating at a loss. So it’s crucial to balance your CAC with your LTV to ensure long-term profitability. Generally 3:1 is considered to be a good LTV to CAC ratio.
What are you optimizing your paid ads for?
The goal of optimization is to improve your ads’ performance, but you must understand what to optimize based on your objectives:
- Brand Awareness: If brand awareness is your goal, monitoring metrics like reach and impressions is critical. But look deeper — are these individuals within your target market? Are they likely to become customers in the future? General brand awareness is beneficial, but awareness among those most likely to convert is more valuable.
- Engagement: While likes, comments, and shares might increase, are these translating into valuable actions? Are engaged users visiting your website or signing up for your newsletter? Always connect engagement with further actions in the customer journey.
- Conversion Ads: If driving actions is your primary aim, ensure those actions are meaningful and contribute to your overall business goals. A user might download a guide (conversion) but never open it (no engagement or further action). Track your conversions further to understand the quality of these actions and the true ROI of your campaigns.
Remember, paid social advertising isn’t just about the immediate conversion; it’s also about building relationships with potential customers and guiding them down the sales funnel over time. So, your optimization goals should also reflect these long-term considerations.
There are different types of digital advertising formats that can be used to promote a brand, product, or service on social media platforms.
Some of the most common paid social ad formats include:
Costs Associated with Paid Social
Running a paid social campaign involves various cost factors, each contributing to your overall marketing budget. These costs typically fall into two categories: ad spend (how much you’re willing to pay the social media platform to show your ads) and agency fees (if you’re using a professional agency to manage your paid social).
How much do social ads cost?
The cost of social ads can vary greatly depending on the platform, your industry, and even the time of year. On platforms like Facebook and Instagram, you can set your budget and bid amount, which directly impacts how often your ads are shown. LinkedIn, known for its professional audience, often carries a higher cost-per-click (CPC) than other platforms.
It’s also important to note that costs can fluctuate based on competition. For example, advertising during a peak shopping season like Christmas usually costs more due to increased competition for ad space.
While it’s difficult to provide specific figures without knowing your exact circumstances, industry averages can give you a ballpark figure. As of 2023, the average CPC on Facebook ranges from $0.50 to $2.00, whereas LinkedIn can average between $2.00 and $5.00 per click.
How much does a paid social agency cost?
The cost of hiring a paid social agency can also vary significantly, depending on the services they offer, their experience, and the scale of your campaigns. Some agencies charge a flat monthly fee, while others may charge a percentage of your ad spend or work on a performance-based model (where fees are tied to the results of your campaigns).
For a small to mid-size business, you might expect to pay anywhere from $1,000 to $10,000 per month for comprehensive paid social management services. Remember, you’re not just paying for ad execution; you’re also investing in their expertise, tools, strategy development, reporting, and ongoing optimization.
Understanding your agency’s pricing structure and value proposition
It’s essential to understand your agency’s pricing structure to appreciate the value they bring.
- Flat Fee: An agency might charge a flat fee for their services. This means regardless of your ad spend, the agency’s cost remains the same. This model is simple and predictable, allowing for easy budgeting.
- Percentage of Ad Spend: Some agencies charge a fee based on a percentage of your total ad spend. This means the more you spend on ads, the more the agency fee. While this can seem daunting, it can often align the agency’s goals with yours – the more successful your campaign, the more they earn.
- Performance-Based: Performance-based pricing aligns agency fees with specific campaign outcomes. This can be an attractive model because you pay more when you see results. However, make sure to clearly define what “performance” means and how it’s measured.
While costs are important, don’t overlook the value an agency brings to your paid social efforts. This includes strategy development, industry expertise, access to advanced tools, and ongoing campaign optimization. Always consider this value proposition when considering the cost of paid social.
Examples, Case Studies, and Creatives
While theory and strategy are crucial, they make the most sense when applied. Seeing real-world examples and case studies can be the most convincing part of understanding the impact and potential of paid social campaigns.
Examples of Successful Paid Social Ads
You can find examples of successful paid social ads across different industries. They often demonstrate effective targeting, creative appeal, and compelling calls-to-action. Here are a few notable ones:
- Brand Awareness: Example 1, Example 2, and Example 3 are excellent instances of campaigns that were designed to enhance brand visibility and recognition.
- Engagement: Example 4, Example 5, and Example 6 demonstrate how businesses can foster community and interaction on social platforms.
- Conversions: Example 7, Example 8, and Example 9 provide insights into driving action, from click-throughs and lead generation to actual sales.
Where to find paid social case studies
Paid social case studies offer in-depth insights into campaign strategy, execution, and outcomes, providing valuable learning opportunities.
At Matchnode, we pride ourselves on our transparent approach and results-driven focus, which you can see in our case studies. These provide an in-depth look at the work we’ve done with our clients, highlighting the strategies we’ve employed, the challenges we’ve overcome, and the successes we’ve achieved.
How to make creative for social ad campaigns
Creative is a crucial element of any social media ad. It’s often the first thing your audience will notice, and it can significantly impact the success of your ad. Here’s how to approach creative for your social ad campaigns:
- Understand Your Audience: Knowing your audience’s interests, preferences, and behaviors will help you create content that resonates with them. Use the data at your disposal to inform your creative strategy.
- Align with Your Brand: Ensure your creatives are consistent with your brand image and messaging. This helps increase brand recall and fosters trust with your audience.
- Experiment and Test: What works for one brand may not work for another. Try different types of content, formats, and styles. Always be testing and learning from your results.
- Leverage User-Generated Content: User-generated content can be highly effective, as it appears more authentic and relatable to your audience.
To get a sense of the creative capabilities of a paid social agency, have a look at the Matchnode creative portfolio. We’ve worked with clients in various industries to create engaging and effective ads that drive results.
Technical Setup for Social Media Advertising
Detailed setup process for different platforms
Technical setup for social media advertising involves configuring various tools and platforms to effectively track and optimize campaigns.
Here is a detailed process for setting up technical aspects in Meta (formerly Facebook), TikTok Ads, and Google Ads for paid social advertising:
Conversions API: Alongside the pixel implementation, consider implementing the Conversions API (formerly Server-Side API) provided by each platform (Meta, TikTok Ads, or Google Ads). The Conversions API allows you to send server-side event data directly to the platforms, enhancing data accuracy, privacy compliance, and reducing reliance on pixel-based tracking. Please note that the specifics and detailed steps may vary, and it’s recommended to refer to each platform’s official documentation for the most accurate and up-to-date instructions.
Best Practices for Paid Social Media Advertising
As we wrap up this extensive guide on paid social media advertising, let’s briefly touch on some best practices to guide you as you navigate through this vast landscape.
Being truly helpful to your audience
As with any form of marketing, your goal should be to offer value to your audience. This could be in the form of educational content, entertainment, or solutions to problems. Your ads should always align with your audience’s needs and interests.
Creating compelling creative
Creativity is the key to standing out in a saturated ad space. Invest time in crafting visually appealing, engaging content that resonates with your audience. Keep in mind the demographics and preferences of your audience while creating these assets.
How to target paid social (now)
In the age of machine learning and AI, modern targeting options have become more sophisticated and efficient. Rather than narrow targeting, we often recommend targeting broad audiences and allowing the algorithms to identify the ideal audience for you based on the creative’s performance. This approach relies heavily on the power of AI and leverages its ability to find the right people within a large group.
Scaling paid social media marketing
When it’s time to scale, do so strategically. Utilize machine learning and AI to your advantage. As you increase your spend and send success signals to the algorithm via pixels, you’re not just scaling your campaigns—you’re also educating the algorithm, making it more effective over time. This ensures that your campaigns are reaching a more targeted audience as they scale, making the scaling process smoother and more efficient.
Brand awareness, direct response marketing, and “performance branding”
Combine the strengths of brand awareness campaigns and direct response marketing to leverage “Performance Branding”. This strategy ensures you’re making an impression and driving measurable actions simultaneously.
Strategic positioning and message testing with paid social creative
Testing is an essential part of paid social. It allows you to identify what resonates with your audience. Experiment with different messages, ad formats, and creatives to find the most effective approach.
Strategic iteration
Finally, remember that paid social is a dynamic field. It’s crucial to learn from your experiences, iterate your strategies, and stay flexible to keep pace with the evolving landscape. Your strategy should always be evolving as you gain more insights about your audience and the performance of your campaigns.
Future of Paid Social Media Advertising
The future of paid social media advertising is poised at the intersection of technology, consumer behavior, privacy concerns, and industry innovation. Recent changes and advancements provide some insight into what we can expect.
Personalization and AI
Personalization continues to be a significant trend, driven by advancements in AI and machine learning. This technology helps advertisers deliver more relevant content to audiences based on their preferences, behaviors, and interactions. This level of personalization enhances the user experience, increases engagement, and boosts the effectiveness of campaigns.
TikTok’s governmental challenges
TikTok, the platform that transformed short-form video content, is facing several governmental challenges globally, particularly concerning data privacy and national security. The platform’s future will undoubtedly be shaped by how these challenges are addressed and may set precedents for how social media platforms are regulated.
Twitter’s 2023 changes
Twitter, one of the oldest social media platforms, underwent significant changes in 2023, introducing new features aimed at enhancing user interaction and engagement. It also shifted towards a more community-focused approach. These changes may increase opportunities for advertisers to engage with niche audiences and foster more meaningful connections.
Threads: Meta’s new Twitter challenger
Meta (formerly Facebook), known for its continual innovation, has launched “Threads” as a new challenger to Twitter. This development could have considerable implications for the social media advertising landscape, especially if Threads gains a significant user base. As with any new platform, early adopters could gain an advantage. Finally, Threads has promised to include decentralized options, and it will be interesting to see how that is manifested, whether with integrations with Mastodon, Nostr, and other crypto-enabled social decentralized social networks.
Users owning their own data via Web3
The emergence of web3, where decentralized networks replace centralized ones, and users own their data, could radically transform the landscape of online advertising. Blockchain technology can facilitate this shift, giving users control over their data and potentially sharing in the revenue generated from its use. This could fundamentally alter the way we approach paid social, forcing a shift from broad data collection towards more direct and permission-based advertising strategies.
As we move forward, the most successful advertisers will be those who can adapt to these changes, innovate, and always place the needs and concerns of their audience at the heart of their strategies. The future of paid social is an exciting space to watch.