Paid Social Advertising: Budgeting and Targeting for Local Agencies

For local agencies managing paid social advertising, budgeting and targeting require a strategic approach that balances cost efficiency with audience precision.

Budgeting:

• Social media ad costs vary by platform and campaign specifics. For example, Facebook ads typically cost between 26 to 105 PHP per click depending on bidding and targeting options.
• A practical minimum budget for social media campaigns starts around 35,000 PHP per month, but this depends on the number of platforms and campaign scope.
• Timing and competition influence costs; running ads during peak hours or holidays can increase expenses due to higher competition.
• Agencies should also budget for additional services like social media audits, competitor analysis, and strategy development to ensure campaign success.

Targeting:

• Knowing your audience is critical. Tailor ads based on where users are in the conversion funnel (awareness, consideration, conversion) and consider secondary audiences who might influence decisions.
• Use data-driven insights to refine targeting continuously and create audience-centric messaging that resonates with specific demographics.
• Platform choice matters: Facebook remains dominant for local brands, but Instagram and TikTok are also important for reaching younger or more engaged users.
• Optimize ads for mobile since most social media users access platforms via mobile devices (over 90%).

Best Practices:

• Integrate paid social campaigns with broader marketing efforts (email, content marketing) for a cohesive customer experience.
• Invest in creative, visually compelling ads that tell authentic stories to break through digital noise and improve engagement.
• Experiment with content formats like video and stories optimized for mobile placements to maximize reach and impact.

In summary, local agencies should allocate budgets based on platform costs and campaign goals, prioritize precise audience targeting using data insights, and ensure creative and strategic integration across marketing channels to maximize paid social advertising effectiveness.