If you’re a business owner and your brand is online, surely, you’ve seen the impact of the most popular social media platforms, like Facebook, Twitter, YouTube, TikTok, and Instagram. Harnessing the potential of a carefully crafted social media marketing strategy the right way can give your business the leverage that it needs to achieve your goals – whether it’s reaching a target audience, generating more leads, or improving your bottom line.

However, before embarking on a social media campaign, it is important that you’re aware of how much does it cost to do social media marketing.

Social Media in Our Everyday Life

It cannot be denied that social media has become an increasingly important part of everyday life – especially in the Philippines, where around 82.4 percent of the country’s entire population are social media users – 92.05 million people, to be exact, as of January 2022.

From connecting with friends and family to online shopping, promoting a brand, or operating a business, social media has opened a lot of avenues for Pinoys to spend an average total of nearly 11 hours a day online, with a little over 4 hours every day browsing on social media. And this makes social media one of the most effective digital marketing strategies available today – considering how social we Filipinos are and the amount of time we spend online.

As consumers, we engage with our favorite brands online via social media. And this allows these businesses to connect with us as customers in a more personal way, establishing trust and credibility while building brand awareness.

In this article, we help you figure out if social media marketing is truly for your business by dissecting the various costs that go into a social media campaign. But before that, let’s get into basic definitions first.

What is Social Media Marketing?

Simply put, social media marketing is a digital marketing strategy that uses online spaces like Facebook, Instagram, and YouTube to cultivate and nurture relationships with customers, both new and old. This online engagement can take many forms, such as publishing valuable and informative content, responding to customer questions, and evaluating feedback.

As a website primarily used to connect with friends and family, the key to social media marketing is to be proactive and engaging without being too “sales-y.” Why? Because social media users actively choose to be in these online spaces as an alternative to other forms of stimuli or entertainment, like the TV or radio, which are known to be oversaturated with ads and commercials.

These people – the names with tiny little headshots that you want to reach – are there to enjoy the platform and consume content, not be sold products and services left and right wherever their eyes land onscreen.

With effective social media management, brands and businesses like yours now enjoy the opportunity to create a strong relationship with your customers that can eventually lead to conversions in an organic manner. All it takes is relevant, engaging, and targeted content to reach the right social media users – but it’s not as easy as it sounds.

And What is a Social Media Marketing Campaign?

A social media marketing campaign, on the other hand, refers to the coordinated effort to improve your brand’s presence and reach on social media platforms. This usually involves creating and sharing high-quality content, interacting with customers, and monitoring feedback.

The goal of a social media marketing campaign can vary, depending on what your brand or business wants to achieve, which can include any of the following:

Increasing brand awareness
Generating leads
Improving customer satisfaction
Boosting website traffic
Promoting a product or service
Encouraging online sales or conversions

Now that we have that out of the way, let’s proceed to the main topic: How much does social media marketing cost?

Costs to Factor in Social Media Marketing Management

Before we move on to the current social media marketing rates in the Philippines, it helps to know what can influence the total costs of social media marketing management. This enables you to better manage your online marketing strategies, so you can make the necessary adjustments when it comes to budget control and financing.

That said, there are different factors that can go into the costing of a social media marketing campaign.

Here are eight of the most important ones to consider:

The cost of a social media audit
The cost of a social media competitor analysis
The cost of a social media strategy
The cost of social media optimization
The cost of social media advertising
The number of social media platforms
The volume of social media posts and the cost of content creation
The frequency of social media contests

The cost of a social media audit

A social media audit is the process of reviewing your social media accounts to ensure they are up to date and compliant with best practices. This can be a time-consuming and costly process, yet essential to do, so it is important to factor this into your budget.

Here are some of the tasks involved in a social media audit:

Reviewing your social media profiles and pages
Checking for consistency across all platforms
Analyzing your social media activity
Identifying any areas of improvement
Creating a report with recommendations

So, how much does a social media audit cost?

Depending on the industry of your business and other factors such as the number of accounts for auditing or the service provider, the average cost of a social media audit can be anywhere between 300 USD and 5,000 USD, which when converted to the Philippine peso, gives you a floor of 17,570 PHP and a ceiling of 292,000 PHP.

Sounds like a lot of money, right? It’s important to note how the dollar rates for social media marketing packages tend to be exponentially higher when compared to PHP rates. We’ll get to localized industry rates later.

Why is a social media audit necessary?

A social media audit is an important step in any social media marketing campaign because it helps you determine the effectiveness of your current strategy. It also allows you to identify any areas that need improvement, so you can make the necessary changes to ensure your social media presence is optimal.

The cost of a social media competitor analysis

A social media competitor analysis involves reviewing your competitors’ social media accounts to understand their strategies and identify areas where you can gain the upper hand.

Is it necessary to do?

While a social media competitor analysis is not required, it can be beneficial in helping you understand your industry better and develop strategies to improve your social media presence.

Here are the key advantages of doing a social media competitor analysis for your campaign:

Helps you understand your industry better
Gives you insights into what strategies are working for your competitors
Allows you to develop strategies to improve your social media presence
Enables you to identify opportunities to overtake the competition

So, how much does a social media competitor analysis cost?

The average cost of a social media competitor analysis is between 1,000 USD and 5,000 USD, which when converted to the Philippine peso, gives you a floor of 58,600 PHP and a ceiling of 292,000 PHP. However, given the advantages that it presents, a competitor study is usually included in most social media management pricing packages in the Philippines.

The cost of a social media strategy

A social media strategy is a plan of action for how you will use social media to achieve your marketing goals. This should be factored into the cost of your social media marketing campaign as it will require time and resources to develop.

Creating a social media persona for your brand, for instance, serves as a crucial part of your campaign. It helps you determine the voice, tone, and messaging you will use across all social media platforms. Other factors such as your target audience, objectives, and budget must also be considered when developing your strategy.

Once your social media strategy is in place, you can start implementing it through various tactics such as content creation, paid advertising, or influencer marketing.

Most social media strategists can provide your business with the following:

An analysis of your current social media presence
Identification of your target audience
Establishment of objectives and KPIs
Creation of content calendars
Development of a social media marketing plan
Implementation of the strategy
Regular reporting and analysis

So, how much does it cost to build a social media strategy?

Like competitor analysis, it is an essential step in the entire process, which is already factored into the total package price for social media marketing management.

And just so you have a ballpark figure in mind: On average, businesses pay around 4,000 to 7,000 USD month on month for social media management costs, like marketing or ads. Converted to our local currency, this is around 234,000 to 410,000 PHP every month.

Again, it bears noting how there exists a gap between the dollar vs peso rates for – more or less – the same suite of services. In any case, it won’t hurt to inquire about the packages, or request for a quote from your local agency.

The cost of social media optimization

Social media optimization is the process of making sure your social media accounts are configured for maximum reach and engagement. After all, how can your strategy get off the ground if your social media accounts aren’t optimized?

Here are some of the key tasks involved in optimizing your social media business profiles, which can vary depending on the platform you’re using:

Profile and cover photo creation or update
Consistent naming across all social media channels
Identification of target audience
Development of buyer personas
Content strategy creation
Hashtag research

Usually also part of a package price, the average cost of social media optimization is around 600 USD per month, but you do have to consider how this is not a one-time thing, as optimization can several months to implement, track, and see results. When converted to our local currency, this is around at least 35,150 PHP per month, depending on the number of platforms.

The cost of social media advertising

Organic reach on social media platforms has been declining over the years, which is why paid social media advertising has become a popular way to reach and engage with your target audience.

Some instrumental benefits of social media advertising include:

The capability to target a specific audience
Improved ROI through laser-focused targeting
A shorter path to conversion

How much does social media advertising cost?

The cost of social media advertising will depend on the platform you use, as well as the objectives of your campaign. For example, with Facebook advertising, your business can pay anywhere between 0.50 USD and 2.00 USD per click, which is around 26.17 PHP and 104.69 PHP when converted.

It bears noting that there are different ways to calculate for the costs of social media advertising, as there are different factors that come into play when it comes to pricing (like time of day, bidding strategy, ad placement, relevancy, and targeting), and the different social media platforms also provide a wide range of ad services.

We have a dedicated section in this guide exploring the costs to advertise with the most popular social media platforms in the Philippines. More on this later.

The number of social media platforms

Apart from the various costs to execute your social media strategy, the number of social media platforms you use will have a direct impact on the cost of your campaign as well. If you plan on using multiple platforms, you will need to factor in the time and resources required to manage them all.

So, how much will social media optimization cost per platform?

Social media management services can be priced on a wider scale, given the various services that can go into each platform, and on average, it can cost your business anywhere between 300 and 1,000 USD. Converted, this can be anywhere around 17,600 and 58,580 PHP.

Here’s a pro-tip: When considering the social media platforms for your brand, be present where your target audience is spending a lot of their time. Quality over quantity.

Yor brand doesn’t have to be present on all the popular social media networking sites – just be where your audience can see you. If you’re unsure which platforms to choose, look for your competitors and take your slice of the pie.

The volume of social media posts and the cost of content creation

Another important cost to consider is the volume of social media posts and content you plan on creating. This will require additional time and resources, so it is important to factor this into your budget as well.

For example, the social media agency you’re working with provides your brand with eight to ten custom Facebook posts with graphics and copy every month, which has been effective in a span of a year, so now, you want to increase the volume to 16 posts/month.

Will your business have to pay for the additional posts?

For most ad-hoc arrangements, the answer is most likely yes. The good news is social media agencies typically offer content creation as part of their pricing packages. This can be in the form of blog posts, infographics, images, or even short video clips.

So, how much does social media creation cost?

The cost of content creation will largely depend on the type and volume of content you need, as well as the level of expertise required. For instance, a two-minute video clip will obviously cost more than an infographic.

On average, content creation and social media post prices can cost you anywhere between 20 to 60 USD a post per month, which is closer to localized rates compared to other social media services. Using the earlier example, 16 unique social media content deliverables a month can cost around 320 to 960 USD, or 19,000 PHP to 56,250 PHP per month.

Here’s a pro-tip: Use a social media calendar for all your content. This will help you keep track of your content strategy and ensure that everything is running smoothly.

The frequency of social media contests

If you plan on running social media contests, you will need to factor in the cost of prizes as well as the time and resources required to manage the contest. As part of your social media marketing campaign, you can use contests as an effective way to engage with your target audience and grow your social media following.

For example, a simple Instagram contest where participants are required to like and follow your page, and tag three friends in the comments section can cost you around 500 USD in prizes. Converted, this can be a one-off cost of around 29,300 PHP.

Contests are a great way to promote your brand, but they can also be quite costly, so implement with restraint.

Social Media Marketing Campaign Costs in the Philippines: Working with an Agency, In-house Team, or Freelancer

There are three main options for managing your social media marketing campaign: working with an agency, building an in-house team, or hiring a freelancer. Each option has its own set of pros and cons, so it is important to consider which one is best for your business.

Working with an Agency

The key advantage of working with an agency is that they have the experience and expertise to manage your social media marketing campaign for you. They will also have a team of people who can help with the different aspects of the campaign, such as content creation, graphic design, and copywriting.

The apparent disadvantage of working with an agency is that they can be costly, so it is important to get quotes from multiple agencies before deciding which one to work with.

According to some blog I found online, the monthly floor rate for social media marketing services in the Philippines hovers around 25,000 to 75,000 PHP, which roughly converts to 430 to 1,280 USD. Meanwhile, the monthly ceiling costs can fetch prices of 100,000 to 250,000 PHP or 1,707 to 4,268 USD.

All things considered; it can be worth your while to consider the professional end-to-end services that an agency can provide your business. As they say, “Quality doesn’t come cheap.”

Building an In-house Team

The most significant advantage of building an in-house team is that you will have full control over the direction and execution of the social media marketing campaign. You will also get to build a team of people who are dedicated to your business and who understand your brand.

However, the main disadvantage of building an in-house team is that it can be time-consuming and expensive to find and train people to manage your social media accounts. It is also important to note that you will be responsible for managing the team, which can be a full-time job in itself.

At its core, an in-house social media team will need:

A social media manager: someone who will be responsible for the day-to-day management of the social media accounts.
Copywriters: people who will write the content or text for the social media posts.
Graphic designers: people who will create the visuals for the social media posts (e.g. logos, infographics, videos, etc.).
Community managers: people who will interact with the followers and build relationships with other businesses and influencers in the industry.

The cost of building an in-house team will vary depending on the number of people you need to hire, their level of experience, and the location of your business. However, a general estimate for the cost of an in-house social media team in the Philippines is around 100,000 to 500,000 PHP per month, or 1,707 to 8,536 USD.

Ultimately, hiring an in-house team enables your business more flexibility to demand dedicated resources and manpower to execute a social media campaign according to your strategy.

Working with a Freelancer

The driving reason you’ll want to be working with a freelancer is the primary advantage that it offers – they are almost always less expensive than an agency and definitely a fraction of the cost of an in-house team. They will also have the flexibility to work around your schedule.

Unfortunately, the disadvantage of working with a freelancer is that they may not have the same level of experience, dedication, or expertise as an agency or in-house team. They will also only work on your social media accounts part-time, so you will need to be prepared to do some of the work yourself.

In addition, there can be miscommunication, unsatisfactory work, and unwanted delays when working with freelancers, which is why you have to be upfront and diligent when choosing to outsource your social media campaign.

That being said, when you search for freelancers online, you’ll find that there can be disparate rates for social media marketing freelancers in the Philippines. So, when you do find a freelancer who is easy to talk to and work with, delivers excellent work on-time for a fraction of what you would be paying an agency or an in-house team, and is proactively collaborative, reward them with incentives or let them know that they are appreciated.

Remember that taking care of your freelance partners helps keep the relationship healthy – it also shows the character of your brand.

Conclusively, the cost of social media marketing is always going to be dependent on the size, scope, and specifics of your campaign, as well as the option you choose for managing it. It is important to get quotes from multiple agencies, in-house teams, and freelancers to home-in on the best option for your business.

When budgeting for your social media marketing campaign, be sure to factor in the costs of a social media audit, competitor analysis, and developing a social media strategy. These are all important aspects of a successful campaign that should not be overlooked – whether you’re working with a social media agency, your own team, or outsourcing to the freelancer market.

Comparing Social Media Advertising Costs in the Philippines

Depending on the social media platform for your campaign, the costs of social media advertising can also greatly vary. We’ll go through the most popular social media platforms for businesses today and capture estimate figures for their advertising services.

Facebook Ads Cost

The global average cost per click (CPC) for Facebook Ads across all industries is 1.86 USD or a CPC of 109 PHP. The average cost per thousand impressions (CPM) is 13.57 USD or a CPM of 800 PHP.

What makes Facebook advertising so effective is the size of its population and targeting capabilities. You can target your ads to people based on their location, demographics, interests, and even the types of devices they use. And with a larger audience plus the correct targeting, you can reach a wider pool of potential customers.

If your business is selling a product or service that is available across the country, you can use Facebook’s geo-targeting feature to target people in specific regions. For example, if you’re selling a product that is only available in Metro Manila, Cebu, and Davao, you can target your ads to people who live in these specific locations.

You can also target your ads to people based on their interests. Take, for example, you own a business selling hair care products for hair fall or dandruff. With Facebook targeting, your ads get shown to people who have expressed an interest in buying shampoos, conditioners, and serums for their hair and scalp problems.

Visit our blog on Facebook ads cost to find out everything you need to know about advertising on the world’s largest social media platform.

Instagram Ads Cost

The average cost per click (CPC) for Instagram Ads is 0.50 to 0.75 USD or a CPC of 30 to 45 PHP. The average cost per thousand impressions (CPM) is 7.91 USD or a CPM of 465 PHP.

Like Facebook, Instagram also offers targeting options that allow you to target your ads to specific groups of people, with factors such as time of day that can also impact the cost to advertise.

Using Insta for your social media ad campaign is a strategic move; consider if your target buyers are more than willing to engage ads on the ‘Gram as opposed to FB, as Instagram appeals more to the visual and aesthetic market.

TikTok Ads Cost

TikTok, the relatively new social media app on the block, is quite the craze in the country. And advertising on the platform follows a different format when compared to FB or IG. TikTok ads’ cost start at 10 USD or a CPM of 586 PHP, and the platform also requires you to pay a minimum cost of 500 USD or 29,300 PHP per campaign.

As it offers a unique way to reach your target audience through its short-form videos, which are typically between 15 and 60 seconds long, you can use TikTok to promote your brand, product, or service in a creative and fun way, such as reviews or how-to’s.

You can also target your ads on TikTok to specific groups of people, such as those who have viewed similar videos or those who follow similar accounts, which increases the possibility that your ads are shown to people who are more likely to be interested in your product or service.

YouTube Ads Cost

The average cost per view (CPV) for YouTube Ads is 0.010 to 0.030 USD, or a CPV of 0.59 to 1.76 PHP, which can also vary depending on audience targeting, ad placement, the quality and length of the video, and the industry of your business or channel niche. Meanwhile, the average cost per thousand impressions (CPM) is 10 to 30 USD, or a CPM of 586 to 1,760 PHP.

Why advertise with YouTube?

Like TikTok, YouTube offers advertising options that allow you to reach your target audience mainly through the use of videos. Here are the primary YouTube ad formats your business can leverage if it’s the social media platform for you:

Display ads
Overlay ads
Skippable pre-roll or in-stream video ads
Bumper ads

Twitter Ads Cost

Calculating for the costs of advertising on Twitter is also different, as the pricing is largely dependent on the type of ad that you’re running for your social media campaign.

Here are the three types of Twitter ads and their average costs:

A promoted tweet costs around 0.50-2.00 USD per action or a CPA of 30-117 PHP.
A promoted account costs around 2-4 USD per follow or a CPF of 117-234 PHP.
A promoted trend can cost around 200,000 USD per day or a CPT of 11.7 million PHP.

Given the specialized advertising options on the blue bird’s platform, there are also different factors that go into the costs of Twitter ads, such as:

Ad quality score
Competition
Billable actions
Bidding type

So, why use Twitter for your campaign? Well, with millions of users, brands can capitalize on the platform’s wide reach and short-form content to promote, engage, and communicate with their existing customers and target audience. The platform’s powerful use of hashtags can help improve your campaign strategy as well, allowing your brand to go viral when done correctly.

LinkedIn Ads Cost

The average cost per click (CPC) for LinkedIn Ads is 5.26 USD or a CPC of 308 PHP. Meanwhile, the average cost per thousand impressions (CPM) is 7 USD or a CPM of 410 PHP. And lastly, the average cost per send (CPS) is around 0.80 USD or a CPS of 47 PHP.

“What is CPS?” you may ask. CPS refers to one of LinkedIn ads’ three bidding options, which is used when your business uses InMail to advertise. From sponsored ads to text ads and the sponsored InMail ad type options, you can reach your target audience, generate leads, boost conversions, or build your authority.

Here are the factors that can influence the cost of your ads include:

Your target audience
Ad bid
Ad relevancy score

As the platform for professional networking, LinkedIn Ads is perfect for businesses that are targeting a B2B audience or those that want to drive conversions. Create engaging, relevant, and eye-catching ads to lower your ad costs to get more mileage for your marketing or advertising budget on this platform.

How to Maximize Your Marketing Budget for Social Media Marketing

Now that you’re aware of the various costs that go into a social media marketing campaign, any business or organization will want to make sure that their social media marketing budget is used in the most efficient way possible.

Here are some quick tips on how to do just that:

Market Research
Performance Analysis
Audience Research
Scheduled Social Media Audits

Market Research

Before you start your social media marketing campaign, it’s important to do your research and understand your target market. This will help you determine which social media platforms your target market is using and what type of content they are interested in.

Performance Analysis

Once you’ve started your social media marketing campaign, it’s important to track your performance and analyze the results. This will help you determine what’s working and what isn’t, so you can make necessary adjustments to your campaign. When done correctly, all the optimization efforts can also help lead to lower ad costs.

Audience Research

It’s also important to research your target audience and understand their needs and wants. This way, you can create content that is relevant and interesting to them.

Since most of the popular social media platforms use an algorithm that can help lower your ad costs by factoring in your target audience and the relevancy of your ads, doing market research also helps impact the way you create your ad strategy.

Scheduled Social Media Audits

And lastly, it’s also crucial that you schedule regular social media audits. This will help your business identify any areas that need improvement and make necessary changes to ensure that your social media marketing campaign is running smoothly.

By following these tips, you can be sure that your social media marketing budget is spent in the most efficient and cost-effective way possible.

Conclusion: Is Social Media Marketing for Your Business?

This may sound like a cop out, but the answer to this question inherently depends on your business goals and objectives.

If you’re looking to reach a larger audience and generate more leads, then social media marketing might be right for you. However, if you’re just starting out and are on a tight budget, then you might want to consider other marketing channels first – but that doesn’t mean that social media marketing can’t be an option.

In today’s digital age, people are online 25/8 – these are your customers who are on their mobile phones, tablets, and computers for as much time as they’re awake. This enables social media marketing to be an essential tool for any local business in the Philippines looking to reach a wider audience. It offers businesses a variety of ways to target potential customers, making it an efficient and cost-effective way to market your product or service and turn your brand into a household name.

By doing your research, exercising the best practices, and innovating the online space with valuable content, you can be sure that your social media marketing budget allows your business to harvest the fruits of all your hard work.

No matter what your decision is, we hope that this guide has helped you better understand the costs of social media marketing and how to maximize your budget.

If you have any questions or need help with your social media marketing campaign, feel free to contact us today. We’d be more than happy to assist you.

Listen to Episode 24 of the Truelogic DX Podcast, where our social media team talks about how social media management is a full-time job!