Relying on social media marketing statistics from 2016 can help you develop an 2017 plan based on data instead of intuition. 2016 is coming to a close, and marketers and business owners are beginning to plan their social media marketing strategy for 2017. It was a revealing year in the world of social media. We saw the introduction of Facebook Live and Instagram stories, and a host of other innovative developments. Indeed, all that has taken place in the world of social media in 2016 has given marketers a lot to consider.
To add to the data collection process, Forrester Research Inc. surveyed 62 retailers about their ad spending in 2016. Their findings were very revealing. Let's take a look at some of the key discoveries that came from this study and how you can use them to guide your planning for 2017.
1. Paid social media marketing is producing cost-effective results
When it comes to return on investment social media has proven once again in 2016 that it is one of the strongest channels available to companies and marketers. When we look at the average cost per sale of the various channels you can use for online marketing paid social comes in ranked at number 4 at $16 cost per order, only outpaced by online marketplaces ($2), email ($5), and affiliate programs ($13). Rounding out the bottom of the list are paid search ($24), mobile tactics such as messaging ($25), remarketing ($26) and behavioral targeting through online ads ($32).
2. Email marketing continues to be one of the most cost effective online marketing channels
The saying “The money is in the list” still held true in 2016 as you can see from the cost per order rankings above. At only $5 per conversion, email is only outranked by marketing in online marketplaces which has a cost per conversion of $2. That's why marketers are ramping up their email marketing budgets in 2017. Our clients connect email marketing to their social media marketing by linking to their sign up pages, including social icons in their email, and asking their email subscribers to follow them on social media. We use Constant Contact to do all this.
3. Retailers boosted their Facebook ad spending in 2016
When it comes to buying ads on social media, no platform outranks Facebook's reach and cost effectiveness. In Forrester Research Inc's survey, 68% of respondents said that Facebook ads both increased their sales and traffic in 2016.
Thus, it's easy to see why 71% of the respondents in this same survey said they increased their spending on Facebook ads in 2016. Facebook ads deliver results plain and simple. Their closest rival when it comes to reach and cost effectiveness? Instagram, which was purchased by Facebook for $1 billion in 2012. Which brings me to my next marketing stat from 2016 that should help guide your planning for 2017…
4. Instagram ads are getting results
Instagram ads became available to social media marketers in September 2015, and they are showing outstanding results for brands, marketers, and retailers. In Forrester Research Inc's survey, 40% of respondents said that Instagram ads increased their sales and 44% said Instagram ads drove traffic to their landing pages and websites.
5. Not many retailers boosted their ad spending on Snapchat
Snapchat's ad platform is relatively new, and the social network has already indicated it plans to shake up the structure of its platform soon. I'm keeping a close eye on this one. Only 6% of retailers boosted their spending on Snapchat ads in 2016. This is worth keeping an eye on, but I suggest focusing on more proven channels until Snapchat's advertising platform and offerings mature.
6. Location based marketing hasn't caught on yet
Your customer's smartphone location says they're near your store. You send them a push notification at that exact moment, and they visit your store and make a purchase!
When this style of targeting was first introduced it was hailed as an advertising revolution. That hasn't been proven to be true yet; that's why only a paltry 11% of the retailers surveyed said they planned on increasing their spending on location-based marketing. Other channels have proven to be far more effective.
Conclusion
Social media marketing and online marketing are fast-paced fields, so 2017 is sure to be an eventful year. The stats listed above offer some insight on where things are heading, but as always, expect the unexpected. If 2016 was any indicator of what is on the horizon for social media marketing in 2017, the next twelve months should be epic!
Contact us for help developing a social media marketing plan for 2017 based on your results from the past year and where things are headed. And, you can get a head start by downloading our free SMART Marketing Goals template. Just click below to get yours.
