Talk to any business and they’ll know how important it is to have an active social media presence – especially in today’s time. Social media helps keep you constantly connected with your customers and helps you easily disseminate your content in an effective and efficient manner.
Today, the social media advertising landscape is deprived of substantial and significant ROI for businesses – making social media advertising unappealing and plagued with high costs, bots, fake clicks, and unclear returning metrics. On social media, users are often bombarded with invasive sponsored ads on timelines and newsfeeds, which is obviously irritating. Conversely, advertisers realize that they are not provided with the transparency and data that they need to fully understand their campaign results.
In 2018, the average business is expected to allocate 41% of their marketing budget to digital marketing and the rate is expected to grow to 45% by 2020. More specifically, social media advertising investments are expected to grow with a 17% compound annual growth rate from 2016 to 2021. Clearly, businesses are spending a lot of their budget on social media marketing.
No Transparency and Lack of Access to Data
Most often, advertisers who engage in social media marketing find that they receive no access or information on any user data that is collected and have little to no insight into what actions these users engage in before they actually convert. Unfortunately, the metrics that media platforms provide don’t allow advertisers to fully visualize, understand, and optimize their post-click conversion funnel. While some platforms provide access to back-end data, advertisers don’t really know how they are spending each dollar on social media.
Bots and Fake Users
A substantial number of followers and likes on photos and content instills the idea of legitimacy for businesses and aspiring social media influencers – however, bots and fake accounts are not the route to take.
Today’s social media platforms are often infested with bots and fake users that skew engagement metrics and misportray the influential power of users. On Twitter, it’s estimated that approximately between 9% and 15% of active Twitter users are bots – equivalent to approximately to 448 million bots accounts. On Instagram, approximately 24 million accounts could be spambots created in online black markets.
These bots and fake users create a clout of unnecessary interactions that count when they interact with content – inflating actual engagement metrics. Unfortunately, these bots are difficult to remove and lower the quality of the overall experience.
The High Cost of Advertising
In 2017, spending on digital advertisements reached $83 billion in the U.S. alone – surpassing total TV ad spending for the first time. Most of that money was spent on Google and Facebook advertising. Additionally, social media ad spend reached a new height of $41 billion in 2017, and Facebook alone is predicted to reach $21.57 billion in 2018.
Most often, advertisers complain about the rapid jump in targeting prices between broad national campaigns and more localized ones. Generally, for small businesses, the targeting they can afford doesn’t spread their message to enough local people. However, if they opt for more localized targeting, their limited budget will only provide lower impressions, which brings fewer acquisitions. Either way, the cost per acquisition begins to rise as the necessary users needed to convert are either not targeted or reached wide enough.
Clearly, the current advertising space manifests its own problems for advertisers. Understanding the biggest problems in the social media environment, we built our platform to solve the current problems that marketers are facing.
With prices to fit any budget and transparent access to our dashboard that allows marketers to launch interactive campaigns on multiple social media channels based on existing users and their associated data, Pinmo solves your advertising needs in an organic manner.