Are Social Media Ads Worth It?

September 06, 2018
by Daniel Klein

 

Organic Marketing

 

Where you use the power of real people, their connections, and followers rather than advertisements and pay-per-click to grow your brand.

 

The difference between organic marketing and social media ads is that we commonly find that the ads are usually sent the wrong audience, at the wrong time, and maybe even to the wrong location.

Just logon to Facebook right and consider how many of those products or services you’ll actually buy in the future, and then recall that a company or entrepreneur out there is spending $.25 to $2 just to expose you to that ad.

 

Social Media Ad Case Study

 

By the numbers: here is a very typical scenario of how pay per click (PPC) and social media ads can destroy your business growth. -these numbers are based on our past client’s experiences.

  1. You spend $1,000 on a Facebook ad campaign and your message is exposed to 4,000 people ($.25/impression).
  2. Of those 4,000 people, 2% enter into your sales funnel, total being 20.
  3. Of the 20, just 1 person (5% conversion rate) convert to become your customer, and over the next 6 months they spend $200.

So then for every $1,000 you spend in ads, you make $200 in revenue. -Less in profit if you include your own operating expenses.

 

Obviously not the best way to run things.

 

Where organic marketing is far superior is in it’s ability to reach relevant audiences and convert using word of mouth.

 

Our Organic marketing works like this:

  1. We find honest folks who have a great reputation and a very strong and loyal social following.
  2. We work to build a relationship between you and these social juggernauts so they can experience your product or service. More specifically, we give them the opportunity to share the stories and experiences your brand provides.
  3. The bloggers and influential people get a wonderful and unique story as a result of working with us and you. You get your brand’s story out to a very large group of very relevant and engaged potential clients who already know and trust the influencer they’re getting the message from. Then just like a personal recommendation, these social circles become your newest customers.

 

By the numbers for organic marketing:

    1. Let’s say you commit the same $1,000 you would be spending on a PPC campaign, but for our organic marketing support.
    2. For that, we connect you to 1 influencer with connections to 50,000 people in your target market.
      • We usually can connect you with 5-10 per month and each influencer usually has 20,000-50,000 follows.
    3. The influencer gets to experience your product or service and because your company is amazing they write a glowing review.
    4. Their following of 50,000 then sees the personal recommendation from their trusted source and convert to being your customer.
    5. Of the 50,000 people we connect you with, we find that usually .25% will convert in the first 6 months. However, because the initial reach was much stronger, the message came from a trusted source, and the audience was the right group to speak to, this campaign resulted in you getting 125 new customers who represent $25,000 in net new business (assuming the same $200/person spent rate).

 

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