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The cost of social media advertising: where is the value?


Social media advertising has become an essential part of many businesses marketing strategies. It allows them to target specific audiences, increase brand awareness, and drive conversions. However, with the cost of social media advertising on the rise, businesses must ask themselves where the value lies.


The Cost of social media advertising: An Overview


Social media platforms like Facebook, Twitter, and Instagram use an auction-based advertising model. Advertisers bid on the audience they want to target, and the platform selects the highest bidder. The cost of advertising varies depending on the platform, the target audience, and the competitiveness of the bidding market.



Where is the Value?

  1. Targeting Capabilities: Social media advertising allows businesses to target specific audiences based on demographics, interests, behaviors, and more. This targeting capability can lead to higher engagement rates, lower bounce rates, and increased conversions.

  2. Measurable Results: Social media advertising platforms provide businesses with real-time analytics to measure the success of their campaigns. This data allows businesses to adjust their advertising strategies to achieve their desired outcomes.

  3. Increased Brand Awareness: Social media advertising can increase brand awareness by reaching new audiences and increasing visibility. This increased awareness can increase organic traffic, engagement, and conversions.

  4. Competitive Advantage: Social media advertising can give businesses a competitive advantage by reaching their target audience before their competitors. It can also help small businesses compete with larger corporations by leveling the playing field.

  5. Cost-effective: Social media advertising can be cost-effective compared to traditional advertising methods. Businesses can set their budget and bid on their target audience, allowing them to control their advertising costs.

In conclusion, the cost of social media advertising can be daunting for some businesses. However, the value lies in the targeting capabilities, measurable results, increased brand awareness, competitive advantage, and cost-effectiveness. By leveraging these benefits, businesses can create successful social media advertising campaigns that drive conversions and achieve their desired outcomes.


(Disclaimer: This content is for the sole purpose of teaching and learning at Edith CowanUniversity)

Student ID: 10599005



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