Episode A.028 Social Media Budget

Introduction
​This week we are continuing our series on Plan - Budget - Action. Regardless of your global location, the world's economy is coming out of the forced shutdown and will experienced a V Shaped (quick contraction followed by a quick expansion) Recovery during the 3RD Quarter (July - August). The goal of IBGR's Programming is to get you ready to claw back as much of your lost revenue as possible.
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Show Objectives
Using baseline data from industry research to determine:

1. Your Total Marketing Budget for the Year
2. Percentage of Marketing Budget Spent on Digital
3. Percentage of Digital Media on Social Media

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What You Need to Know
(Web Strategies)
​Marketing Spend for Business

• 5%-15% of annual revenue on marketing
• 35%-45% of marketing budget on digital
• 15%-25% of digital budget on social media

Social Media Channels

• Facebook 2.2 Billion Users
• FB Messenger 1.3 Billion Users
• Instagram 1 Billion
• LinkedIn $575 Million
• Snapchat 310 Million
• Twitter 330 Million
• Pinterest 250 Million
• Yelp 142 Million

United States Breakdown

• YouTube 73%
• Facebook 68%
• Instagram 35%
• Pinterest 29%
• Snapcaht 27%
• LinkedIn 25%
• Twitter 24%
• WhatsApp 22%

Budgeting Time & Money

• Strategy 10%
• Project Management 10%
• Design, Graphics, Videography, Visuals 30%
• Ad Spend 40%
• Copywriting 10%
• Tracking Results 5%

What You Need to Do
Assumptions

• Last years Revenue $1,000,000
• Budget for Marketing $100,000​
• Budget for Digital Media $45,000
• Budget for Social Media $11,250

Example Budget

Social Media Marketing	Material Costs	Labor Costs	Outsourcing Costs	Total
1. Strategy	$0.00	$140.00	$500.00	$640.00
2. Project Management	$0.00	$1,000.00	$0.00	$1,000.00
3. DGVV	$120.00	$500.00	$500.00	$1,200.00
4. Ad Spend	$4,000.00	$500.00	$0.00	$4,500.00
5. Copywriting	$0.00	$0.00	$1,000.00	$1,000.00
6. Tracking Results	$0.00	$500.00	$0.00	$500.00
Total	$4,120.00	$2,640.00	$2,000.00	$8,760.00
Percent	47%	30%	23%

Misc. Thoughts

1. This budget has $2,490 remaining from the $11,250 allocated - mix it between buying more ad's and outsourcing more work.
2. Never allow your labor costs to exceed 33% of the total budget - 30% in the example is a good ceiling, outsource any additional hours for activity work.
3. Using Facebook as an example, if you ran ad's on Facebook for 50 weeks you could spend $80 a week which would reach about 4,000 people per week.

Next Show: ​A.029 Brand  Analytics