Every week we put our President, Gary Stockert, on the spot to answer 3 questions in 3 minutes. Gary doesn’t know what questions will be asked or even WHEN we will barge into his office and demand answers! We live in a time period of short attention spans and a sea of knowledge at our fingertips, it is up to him to explain and distill these questions into short and easy answers for you!
1. What Percent of Marketing Revenue Should I Be Investing in Social?
First, we are going to want to look at the overall percent of revenue being spent on marketing in general. Large companies will spend up to 10% of their revenue on marketing; however, many smaller companies will only spend 2-3% of revenue on marketing. Then looking at that overall spend you are going to want to invest about 40-60% of that amount into digital marketing. This 40-60% of marketing budget, a number that has tripled in the past few years, isn’t the amount you are going to want to spend on Facebook Advertisements, but rather in all of your digital marketing and advertising efforts. It is important not to neglect SEO and Google Adwords to focus solely on Facebook Advertisements, because depending on the nature of your business, SEO may actually be more important! It is important to understand your customer’s experience and adapt your marketing strategy towards that.
2. How Frequently Should I Be A/B Testing My Advertisements?
To break it down, first, let’s clarify what A/B testing is. A/B testing is essentially an experiment where two or more variants of a page are shown to users at random, and statistical analysis is used to determine which variation performs better for a given conversion goal. When reworking your advertisements you should only change one aspect at a time. For example, testing the same advertisement in two different locations, if the company has numerous locations, to a change in the advertising copy or simply swapping images.
In terms of frequency, you are going to want to make changes monthly. At the end of each month, you will want to turn off the advertisements that didn’t do well and create another advertisement that you think might outperform the previous champ. What you will often see is that most of your advertising spend will only be going to a few advertisements. Sometimes it is hard to tell why one advertisement does better over another because there are so many factors at play once it’s published. It’s best to keep A/B testing and attempting to perfect the advertisement by changing one factor at a time.
3. How Has the Recent Facebook Algorithm Change Affected Advertisements?
The recent friends and family algorithm change has probably thrown us all off and left us anticipating the worst…crazy high advertising spend! However, this change is not all bad, it is really just solidifying that content will continue to serve as an advertising platform. If you want to see success with your advertisements moving forward, try making them look like content you would normally see in your news feed. People are aware of advertisements that look like advertisements and aren’t going to click on them. In order to be effective, it is best to create advertisements that actually look like regular content and draw in your audience. Pay-to-play is actually good for advertisers, this gives you the option to pay to be seen by more people. With a platform as big as Facebook it was likely a change like this was to occur sooner or later. If you are still curious about the algorithm change and want a bit more information check out our blog written solely on this topic!
Thanks for reading this weeks blog about Gary’s 3 in 3! If you enjoyed this blog check out the full video HERE, and join us next week for another 3 Questions in 3 Minutes from Gary Stockert.
Don’t forget to send us your questions at email@example.com to have Gary answer your questions related to anything search & social.