If I were to tell you that social media marketing as you know it would cease to exist in 2019, would you regret not taking the opportunity to advertise more while you had the chance?
Social media has always been a very changeable medium—that is part of what makes it so excited to be a social media marketer and to run your own agency. However, the constant changes that occur are one of the reasons why so many social media marketers fail.
Social media marketers most often fail when they:
- Don’t adopt new channels
- Disrespect mobile first users
- Are reluctance to try video
- Fear spending money on social ads
In other words, social media marketing relies on marketers adopting new tactics in their business and brand strategies. If you want to grow your business on social media, you must implement new strategies into your company’s culture as they arise.
No social media marketer will be successful unless they invest in changes quickly instead of waiting for the price of advertising to soar too high, missing the opportunity to grow their business.
In this blog, I’m going over why ad costs are rising, and what you have to do to take advantage of key social media platforms now, before it’s too late.
Invest in New Platforms
For now, platforms such as Facebook and Instagram are still affordable and make sense for your business. However, that might change sooner than we expect. Future trends in social media advertising will see higher CPM and usage by consumers will change.
In a recent keynote speech, entrepreneur extraordinaire Gary Vaynerchuk stated, “Invest now, when the average cost of running an ad on Facebook or Instagram is still reasonable and the conversion rate is still high.”
While it is still early for social media advertising, pricing for Facebook and Instagram ads will increase and conversions will decrease in the future. In 10-12 years, the pricing that we are used to know will be all but unrecognizable.
That will hardly be the first time something like that has happened—in fact, it is the nature of social media platforms to start low and rise rapidly. Gary himself has state, “anything that is new is underpriced, but once the market becomes flooded and highly competitive, pricing will increase.”
One platform we can use as an example of this is Google Adwords. When it first became available, CPC was extremely low. However, the price rapidly increased once businesses caught on to its useful nice and, at the time, its affordability.
While it’s no doubt we are living in the ‘Age of Abundance,’ this can actually make it harder for businesses to take advantage of opportunities that are being presented to them. You need to make sure you have investing in the power of social media advertising and its impact to your bottom line now, before ad costs soar.
Why Are Prices Rising?
There are two primary reasons why we’re seeing an increase in Facebook and Instagram ad spend, and why we can be reasonably certain that this trend won’t be stopping anytime soon.
The first is that Facebook has had to assure investors that there are still growth opportunities, despite stock prices tanking in July. The drop in stock prices a few months back sent a wave of panic through Wall Street as Facebook missed their expected earnings on its second-quarter.
As a result, Facebook and Instagram users will see more ads in their feeds, which means the platform will be more competitive for advertisers. This will translate to marketers will have to increase their marketing budget, spending more on ads at higher CPM.
The second reason for the predicted rise in the price of advertising on Facebook and Instagram is because right now, big brands are still investing a lot of their budgets to more traditional advertising.
Big brands like BMW, Coca Cola, and Mercedes Benz have invested in traditional advertising like billboards, television commercials, print ads, and banner ads on websites. However, just because big brands are doing so, doesn’t mean you should. In a mobile society the money invested in these forms of advertising would have a better ROI if put on Facebook, Instagram, YouTube, etc.
Once these brands figure this out and turn that same amount of ad spending over to social media advertising, it will flood the market and increase competition and ad spend.
What Should You Do Right Now?
For now, Facebook Marketing is still one of the best platforms for running ads. However, many marketers do not give Facebook Marketing a chance. It takes time to generate ROI on Facebook ads, including constant monitoring, testing, and tweaking campaigns. This diligence is the only way to find success with Facebook ads.
As Vaynerchuk puts it, “the biggest reason businesses fail in the current social media environment, is that it takes work—you don’t just run a Facebook ad and it works!” Essentially, what he’s saying is that you need patience in order to be successful with Facebook advertising, and you need to be willing to play the long game.
There’s no doubt that building Facebook ads that convert can be challenging, but the reason marketers do not have success on this platform is because they do not put in the time to ensure they have a successful campaign. Instead of adjusting their strategy, they simply give up. This will surely become something they regret as ad costs continue to rise and they eventually get priced out of the platform.
Your best bet to take advantage of Facebook Marketing is to learn now and invest in the platform while costs are low.
Social Media Marketing Has Changed, Marketers Have Not
One thing that remains consistent whether you’re marketing online through social media or through more traditional channels, is that the key to success in creating content is in finding out how to communicate your message to your audience—whether it’s through written content, video, or audio. When it comes to social media marketing, the key to success is this regard is in considering all platforms regardless of what you might have once thought of them.
For B2B businesses, LinkedIn has recently become a popular content-driven platform. While ads are not converting as well as Facebook, the organic reach on LinkedIn is slightly better than Facebook right now. Especially after the privacy changes on Facebook.
Twitter has it challenges as a marketing platform, but it is constantly evolving. Businesses overlook Twitter because they think it is not scalable, but when it comes to advertising it offers great features: Pay for Performance, Keyword targeting, Tailored audiences, Low CPC.
Vaynerchuck cites Twitter as a great platform for those just starting out, as it offers great opportunities for businesses to connect to others in their industry thanks to keywords, hashtags, and the ability to jump into conversations with others in the industry or those aligned with the market.
Podcasts are another overlooked social media platform that many marketers might have once dismissed. The bottom line is, podcasts work. In a mobile society, a large number of people listen to podcasts on their mobile devices when they’re working out at the gym, on the bus on their way to work in the morning, or working at their office job.
It is also easy to create podcasts thanks to a free app called Anchor. No engineers needed. No fancy equipment needed, just your phone. This means social media marketers can look forward to great ROI if they learn to monetize on the platform efficiently.
The bottom line is, if you want to remain competitive and grow your business through social media marketing, you have to take action now. Produce video, audio, or written content that will catch your audience’s attention, and invest in advertising now when the cost is low and the conversion rate is high.
If you want to learn more about how you can set up and market your own personal brand or business, then enroll in our Personal Branding & Influencer Marketing course right now! You can also follow us on YouTube, Instagram, and Facebook for educational content about social media marketing, or visit our blog for more FREE training.