Why Social Media is Getting Expensive…& Why You Need to Dole Out to Succeed

The low-down: Social networks realize that brands will pay big money for access to the millions of users in their online 20274015_scommunities, and they’re going to charge more and more for that privilege. According to a recent Advertising Age article, Facebook reports: “Content that is eligible to be shown in news feed is increasing at a faster rate than people’s ability to consume it.”

This means the organic reach of any one particular piece of content is going to decline even more from the 16 percent rate it’s at now. Some may see it drop all the way to 2 percent.

Increasingly, to compete effectively in social media, brands realize that to play, they must pay.

Why you’ll need to increase your marketing budget: PR Daily explains that in order “to keep up with social networks’ efforts to monetize their massive online audiences, companies are allocating more resources to keep up. Simply creating valuable content and then authentically engaging with your audiences often is no longer enough, especially when you have to spend more to reach those audiences. Brands know they now must create distribution strategies for that content, sometimes at a substantial cost.”

PR Daily shares the seven ways brands will spend more money on social media and content marketing in 2014:

  1. Creating content. If brands wish to rise above the glut of content, they’ll have to dramatically improve the quality of their own.
  2. Promoting content. Social platforms will be rewarding brands that spend a lot of money in ads on those platforms. Paid ads and sponsored content will help drive the “organic” reach of your other content. Plus, brands with more Facebook likes are going to see a lower cost for paid distribution because paid social ads will show greater social context.
  3. Increasing reach. As brands acquire more and more fans, followers, and “likes,” and as these social networks get larger and larger, the cost to reach those networks will continue to increase.
  4. Syndicating content. More dollars will go to companies such as Taboola and Outbrain that specialize in placing content where it’s most likely to be discovered.
  5. Monitoring, filtering, and analyzing conversations. As more people and brands create even more content, it’s going to become more difficult to identify and act on what’s relevant to you. As a result, pricey monitoring and analytics tools will be migrating from the wish list to the approved budget.
  6. Paid sponsorships. Those “influencers” you’re always trying to reach? They’re realizing their influence is in demand and that it’s not cheap. According to a recent IZEA survey, 61 percent of marketers have paid someone to mention their product, and that number is only going to rise in 2014. It’s not just celebrities and athletes, either. Everyday people are also asking for more money and more product, because they can and because brands will meet those demands.
  7. More full-time employees. As more content is created and more money is spent promoting and distributing that content, more people will be needed to create, moderate, measure, and analyze it. Demand for data scientists, SEO specialists, media buyers, and creatives will increase as brands try to optimize the money they’re investing.

Read the entire article at PR Daily and start emptying that piggy bank!

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