It’s a good question: “Should we spend money on the social web?  What if we’re throwing our money away?” Lots of people are asking that question, and though the answer does vary circumstantially, there are a few things you should consider before hastily deciding to throw either a few pennies or a few Benjamins into the pot.

1. Large organizations have a marketing piggy bank. Do you?  A general rule of thumb for any organization (non-profits included) is to take 7-10% of your revenue stream and immediately put it back into promotion.  Painful though it may be, those who practice it know the value of investing into the future growth.  It is NOT enough to assess the cost project by project; having a promotion piggy bank to pull from insures better long-term planning and a better evaluation of what you are (and are not) capable of doing.  It also gives you a clear path for growth: as you grow, you will be able to hire people (or create departments) that are responsible for marketing.   Without allotting that 7-10%, marketing will always be a second thought and an added expense.
2. Marketing firms are putting more into the social web. A recent survey done by Duke University’s Fuqua School of Business and the American Marketing Association (AMA) forecasts that in 5 years, almost a 5th of all marketing dollars will go towards social media.  Shocking?  The history of marketing is simple: marketers put their money where people can see it…  billboards on a highway, tv commercials during prime time, and now ads on Facebook, where some people spend most of their day.  Marketers are realizing that putting money into the social web is smart because the people they are trying to reach are there all the time.  Unless you are trying to sell pop tarts to the Amish, your audience is probably using the social web.
3. “So, I should take 10% of my revenue and put a 5th of that into the social web?” Not necessarily.  We’re going to be bold and suggest that you may want to do more, especially if you are a small business.  Here’s why.  Large businesses must maintain broad marketing campaigns, pay large staffs, make tv commercials, and buy space on highway billboards.  Small organizations don’t.  All you have to do is put your buck where it gets the most bang!  If your audience spends a lot of time on the social web, it is safe to say that advertising there is a wise choice.  Plus, if major marketers are going in that direction anyway, you may be branding yourself as ahead of the curve.  (Again, a lot depends on who you are trying to reach, and what it takes to reach them.)
4. Think “Social Media Manager”. Assuming that your business or organization will grow, set goals to grow your marketing as well.  Having the budget is the first step; looking for the right people to hire is the second.  A couple years ago, the title “Social Media Manager” did not exist.  Now it is one of the most in demand positions.  Finding quality people who understand your organization AND the social web is tough.  The position is not only a way to advertise, but also to extend customer satisfaction and keep up your public image.

Contact us if you are interested in Wordfresh assessing your specific needs and making suggestions for your organization’s growth.  How does your organization handle budgeting for the social web?