Social media advertising cost: Service rates explained

Social media has become the go-to tool for the world. Be it enthusiasts, marketers, content creators, or influencers, we communicate on different social media platforms. In fact, Australia has 20 million social media users alone. This means that 80% (or more than half) of the population is online. So if you want to generate more leads and profit for your business, social media marketing is an excellent way to start.

These days, the average cost of social media advertising ranges from $3,000 to $5,000. If you have yet to establish an online presence, don’t fret. Social media advertising is also good for startups or new businesses.

Social media advertising cost

When assessing social media marketing costs, we look at the cost per click (CPC). This refers to the billing charge each platform notes per click by a user on a display ad on their site or app. To save on costs, it’s a must to understand what you’re paying for and how those pennies per click can add up.

Before you allocate your funds, remember that successful social media advertising is about getting the right results from the right audience. Therefore, you must think about the following: 

• Your exact audience – Who are they and where do they spend their time online?
• Brand fit – Does your content style match the platform’s vibe?
• Content strategy – What type of content will you create, and where will it perform best?
• Platform selection – Focus your budget on platforms where your audience is most active
• Campaign goals – Are you targeting brand awareness, leads, or direct sales?

Getting these fundamentals right from the start can save you serious money and deliver better results. Need help mapping out the perfect strategy? Feel free to consult a Google Analytics professional.
A social media influencer taking a photo of her meal (Source: iStock)

Factors affecting social media advertising costs

Three main things influence how much you'll pay for social media ads: creating content, choosing platforms, and boosting posts. Get these right, and you'll spend your budget more wisely. 

Content creation

Content creation is a major factor in your social media advertising budget. Every ad needs two elements: compelling copy and eye-catching visuals. The quality and complexity of these elements directly impact your costs, and you can’t really skimp on either if you want ads that actually work.

At present, design costs vary depending on what you need. For instance, simple graphics might cost $300 to $800, but if your business requires more specialised work, expect to pay more. You might need an Adobe After Effects designer for animated content or an Adobe Illustrator designer for custom graphics. The more complex your visual requirements, the higher your budget needs to be.

As for copywriting, your final cost also depends on the type of writer you hire. Basic copywriters might charge $400 to $1,000 for social media copy, while SEO copywriters cost more because they know how to improve your search rankings. If you need someone with copy editing and proofreading skills, add another $200 to $400  to the total. 

Social media platform

The type of platform also contributes to the cost of social media advertising. This is because you cater to different audiences when you advertise. Each social media app has its own set of metrics, geographical targets, and other similar features. In addition, each social media platform has core content competencies. 

For instance, Facebook relies on post sharing and targeted ads appearing on the user’s news feed. Twitter ads break your timeline, while Instagram is shifting towards balancing both video and photo content. YouTube has advertising spots embedded between a video a user is watching. Lastly, TikTok is experimenting with video ads on FYPs (For You Pages). 

Boosting

Boosting refers to sponsoring your content on non-followers' feeds to get exposure. The process is simple. The more you play, the more people can see your advertisement. These boosted posts also have a “Sponsored” tag on them. 

Additional social media advertising costs

Aside from your main budget for social media advertising, consider long-term services. If you're investing in an agency to help you out, you can ask them for a weekly or monthly report of your social standing. Otherwise, here are other things to include in your budget:

A person engaging in social media (Source: iStock)

Analytics

Analytics show you exactly how your ads perform, like which posts get the most engagement, what times your audience is online, and which content drives the most conversions. Without this data, you’re just guessing what works. Most platforms offer basic analytics for free, but for detailed insights into customer behaviour and campaign performance, you might need specialist tools or hire a Facebook marketing specialist or an Instagram marketing professional to analyse your data and optimise performance.

Search

Search refers to the process of gaining visibility via search engine optimisation. When someone searches for “best coffee shop near me” or “fitness trainer Brisbane,” you want your business to pop up. An SEO expert helps by finding the right keywords to use in your social media posts and profiles, so more people discover you without you having to pay for ads. Monthly SEO services typically cost $1,000 to $3,000, depending on your business size and competition.

Branding

Branding is what makes your business recognisable and memorable. It’s your logo, colours, tone of voice, and overall vibe - basically everything that makes you “you.” On social media, consistent branding means your posts look professional and cohesive, whether someone sees them on Instagram, Facebook, or LinkedIn. 

Some businesses have in-house branding teams, while others hire branding consultants or agencies. Today, many social media agencies include branding as part of their service packages.

Post a task for social media advertising

Social media advertising doesn’t require a massive budget to get started. Even with $500 to $1,000, you can test different platforms, see what resonates with your audience, and learn what works for your business. The key is starting with clear goals and tracking every penny you spend.

Ready to dip your toes in? Post a task and find local social media services that can help you launch your first campaign without breaking the bank.