Social media advertising can increase your sales by raising brand awareness and attracting new customers. If you are venturing into social media advertising for the first time, how will you decide which channel will benefit your business?
Our comparison of Google, Facebook, and Groupon can help you win new business and increase your sales.
How Does Social Media Increase Your Sales
Google is the most-used search engine, with several hundred million searches conducted daily. Your drive to increase your sales provides access to numerous potential customers. The downside is getting your voice heard among all the clamor and competition.
While Google Adwords can directly increase your sales with pay-per-click ads, Facebook is more likely to increase your sales by raising brand awareness. Facebook users may access your website directly from your Facebook page.
Alternatively, they may read about you in the content shared or liked by a friend. 78% of people trust peer recommendations, while only 14% trust advertising, according to Erik Qualman, Global Vice President of Online Marketing for EF Education.
A Groupon campaign can also increase traffic to your website. However, a Groupon campaign aims to sell vouchers offering heavily discounted deals. Groupon handles sales of the vouchers. You aim to increase your sales to Groupon users through upselling or making them loyal customers over time.
Which Channel Will Increase Your Sales Now
The most immediate impact on your sales volume is likely to result from a Groupon campaign. By offering your product or service at a substantially discounted rate for one day by attracting hundreds of new customers. Your business will receive an immediate revenue boost from the vouchers sold, less the Groupon fee.
However, you will need to plan for future Groupon voucher redemptions. Your goal is to increase sales by upselling alongside voucher redemption and securing repeat business through great customer service.
Through a Google search, potential customers arriving at your website may be ready to buy. Alternatively, they may simply be browsing or researching products and services. Your website should be packed with compelling content, great deals, and clear calls to action to increase your sales by converting browsers and researchers into customers.
Raised brand awareness resulting from a Facebook campaign will take much longer to increase your sales and is much more difficult to quantify. Visitors may arrive at your website via a Google search, although their initial interest in your product or service was inspired by information read or shared on Facebook.
What Will It Cost to Increase Your Sales Through Social Media Advertising
While each of these channels has the potential to deliver a substantial return on investment, this must be balanced against the time and money invested in increasing your sales. Google and Facebook costs are calculated on clicks generated, either on a cost-per-click (CPC) or cost-per-thousand (CPM) basis. However, conversion rates from Google and Facebook campaigns can be low, increasing the cost per conversion.
Groupon costs are based on the number of vouchers sold, known as cost-per-action (CPA). Groupon typically charges 40 to 50 percent of the value of the vouchers sold.
The time investment in social media advertising is also a significant factor, particularly for small businesses with limited resources. Facebook content requires updating every three to five days. In addition, customer comments and questions require a timely response.
The speed of the social network means that content that is little more than a week old can be regarded as outdated. The time investment for Groupon will come immediately after the vouchers sale closes when hundreds of new customers attempt to purchase your product or book your service. Ensure that you have sufficient staff available to meet the demand, or your campaign to increase your sales could backfire.
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