When I tell clients that they’d need to budget a MINIMUM $1,000 in ad spend for Facebook, the first thing they say is “why is it so expensive?” My response isn’t what it should be – “You should be spending a lot more” – but rather “I think you mean why is it so cheap?”
📍We somehow forget the amount of money that is spent on traditional forms of advertising that no one cares about or pays attention to. With Facebook ads you can target specific interest, geographic locations, sex, age, etc and you can reach not only way more people but the people that would want your product or service. You can do all this for a fraction of the cost. Even better, with Facebook ads, you can actually see the data and EXACT metrics and conversions. Lets compare…
📺 According to Nielsen, in 2015 the average prime time cost in the US for a 30 second TV spot was $112,000. It was $344,827 during The Big Bang Theory and $400,000 during the fifth season of The Walking Dead. Lets leave the Super Bowl out if it (as I actually believe it’s still good value, but we’ll talk about that another time). Yes, The Big Bang Theory had 16.7M viewers and The Walking Dead season finale that year had 17.3M but lets be honest … aside from the obvious how many of those people are your target audience, the real question is WHO’S WATCHING COMMERCIALS?!
🗞Next we have $50,000 for one full-color ad on the front page of the New York Times (according to Ad Age). However, you’ll notice the * … you must commit to a certain frequency (like front page ads every Monday for 6 months). That brings the total cost of running frequent page-one ads to over $1,000,000. Again, how many are your target audience and how many people stop and read the ads?
📻 If you visit the SiriusXM website they actually tell you how much you should budget monthly for blanket radio spots. It’s $10,000/month recommended budget. Of course you can probably get away with a little less and do more with more money but the point is are you hitting your exact audience? How much of this budget is wasted? You’ll never know because you’re being told what your reach and impressions are.
🗽Lastly, we have a billboard on Clear Channel’s eight story sign on Broadway. The cost for 4 weeks has been reported to be approximately $2,500,000. Now Times Square gets A LOT of traffic but trying it’s also one of the most crowded advertising places in the world. Can you be sure people are seeing it? Paying attention to it? Buying from it?
🎯 So go ahead, ask me again why a $1,000 or even $5,000 per month ad spend to target your exact audience, your exact demographic, to get all the data and ability to retarget them again and again is “so expensive.”