Social Media Budget Calculator Tool
Social Media Campaign Budget Calculator
 | |
|---|---|
| Social Media Budget Recommendation Tool | |
| Select Currency: | |
| Objective | |
| Duration (weeks) | |
| Placement (Medium) | |
| Audience Size | |
| CPM (Expected or Historical) | |
| Share of Voice (%) | |
| Reach | N/A |
| Frequency | |
| Impressions | N/A |
| Recommended Budget | N/A |
How Does It Work?
Select Currency: Before getting started, you need to select a currency.
If the currency you want to use isn’t listed, it’s not a problem. As long as your input CPM is in your local currency, the result will reflect accordingly. You can just take the numbers and display (not convert) them in your local currency.
Select Campaign Objective: This is actually to set a Share of Voice (SOV). Advertisers mostly target higher share of voice for top of funnel campaigns while aiming to get lesser for middle and bottom of funnel campaigns.
Based on your selection, a default SOV will be assigned to your calculation. You can manually change it.
Select Duration: How long will your campaign be running? Your input indicates weeks, not days.
For top funnel campaigns, advertisers are likely to have a broader audience and lesser frequency as a result. It’s the opposite for the bottom of funnel campaigns.
Select a Placement: The platform that you’ll run your campaign. It doesn’t effect the calculation (yet).
Audience Size: Get a audience size estimation from whichever platform you’re going to run your campaign. Most social media platforms provide this feature. This is one of the most important element of this calculation.
CPM: You need to have an historical or an expected CPM (cost per mile = 1000 impressions) metric in order to build this budget recommendation. This is THE most important element of this media budget calculation.
You’re ready.
ADDITIONAL NOTES: Feel free to edit your Share of Voice in accordance with the impact you want to make with this media buying. But if you increase it more than 80% for an awareness campaign, you should expect higher* frequency.
*Higher than 1 frequency per week standard.
How to Calculate Media Buying Budget for Social Media?
There’s no one-size-fits-all answer to calculating a social media media buying budget, but this above calculator will help you get started for your first campaign.
In order to calculate how much you should allocate for your next campaign, you need to:
Define Your Objective: Just like in this budget calculator tool, you need to define your goals. What do you want to achieve with your media campaign? Increase brand awareness, drive website traffic, or generate leads?
Use Historical Data (or Benchmarks): If you’ve run social media ads before, leverage that historical data just like this tool requires. If you don’t have one, no worries you can ask or search for benchmarks to start. Don’t forget to buffer the numbers you get by 20-30%.
Set SMART Goals: Set Specific, Measurable, Achievable, Relevant and Time-bound goals for your social media campaigns. Allocate your budget based on your goals and the estimated costs of achieving them by using tools like this one.
In larger scale, you can also use industry benchmarks for an annual budget allocation.
B2B companies often allocate 2-5% of revenue to marketing, while B2C companies might dedicate 5-10%.
Source: https://facelift-bbt.com/en/pricing