When calculating the cost of attracting a Planning a budget client, it is important to take into account another point – LTV (lifetime value), i.e. the income that the client will bring during the entire period of cooperation with you. This is especially relevant Planning a budget for the service sector and subscription services.
For example, a membership at a fitness center costs 10,000 rubles for 3 months. That is, a client will bring in 40,000 rubles per year. With such an LTV, you can afford to spend up to 4,000 – 5,000 rubles (10-15% of annual income) on attracting a client. This is a lot, but you get a loyal client for a long time.
3. Assessing the effectiveness of advertising in social networks
Measuring return on investment
The main indicator of advertising success is its payback, or ROMI (return on marketing investment). It shows how much money you earned from each ruble invested in advertising. The higher the ROMI, the better the advertising works.
The calculation formula is simple:
ROMI = (Revenue – Advertising Costs) / Advertising Costs x 100%
Let’s say you invested 100,000 rubles in advertising and received 500,000 rubles in income. Then the ROMI will be: (500,000 – 100,000) / 100,000 x 100% = 400%. That is, every ruble spent brought you 4 rubles. This is a good result.
Adjusting the campaign based on data
To ensure that social media advertising brings maximum effect, it is not enough to simply set up a campaign once and forget about it. You need sweden email list to constantly monitor the indicators, analyze them and make changes.
What parameters should be checked regularly:
- CTR – click-through rate of ads
- CPM – cost per 1000 impressions
- CPC – cost per click
- CR – conversion from different sources
- CPL – cost per lead
- CAC – customer acquisition cost
Let’s say you’ve noticed that the CTR has dropped and the CPC has increased. This is a reason to review creatives and ad texts. And if the conversion betting email list rate is falling, it means you need to work on the landing page and offer.
4. Social Media Budgeting Checklist
Let’s sum it up and put all the tips together in one checklist. Save it and use it when planning your social media advertising:
- Study your target audience and choose the appropriate social networks
- Analyze the level of competition and prices in the niche
- Define your advertising campaign goals and key metrics
- Distribute your budget across the sales funnel levels
- Calculate the cost of a target action (click, lead, sale)
- Consider LTV when choosing your strategy and budget
- Estimate ROMI to understand the return on your advertising spend
- Regularly analyze metrics and optimize campaigns
Conclusion
So, to effectively promote yourself in social networks, it is not enough to simply allocate money for advertising. You need a systematic approach: product studio & merchant center next audience research, selection of platforms, cost calculation, evaluation of payback and constant optimization. This is a labor-intensive process, but as a result you will receive advertising with maximum return.
