KPI Benchmarks : Social Media Marketing Expense as a Percentage of Total Marketing Expense
- Benchmark Range
- Benchmark Average 10.0%
- Benchmark Sample Size (n) 26
* Is High or Low Best: Lower is Better
KPI Details : Social Media Marketing Expense as a Percentage of Total Marketing Expense
Social Media Marketing Expense as a Percentage of Total Marketing Expense measures the expense incurred through social media marketing divided by the total expense incurred by the Marketing Department over the same period of time. A relatively high value for this metric may be related to a number of factors, including limited use of targeted social media platforms (e.g., not using the social media platforms the company's customers frequent), irrelevant and untargeted social media marketing campaigns (e.g., social media campaigns that fail to connect with customer interests, etc.), overstaffing, general inefficiencies within social media management processes (e.g., inefficient market and customer research on social media platforms, untimely reactions to trends or communications, etc.), and sub-par Social Media Marketing employee training and performance. Any values for this metric should be weighted against the company's overall marketing strategy, as certain businesses may be more focused on social media marketing than others due to differences in their customer demographics, etc.
KPI Best Practices : Social Media Marketing Expense as a Percentage of Total Marketing Expense
- Monitor KPIs for ad performance such as Cost-per-Click and abandon ads that are ineffective
- Use multiple channels of social media to find most cost-effective method of advertising
- Capitalize on organic search as much as possible before paying for ads on social media
KPI Calculation Instructions Social Media Marketing Expense as a Percentage of Total Marketing Expense?
Two values are used to calculate this KPI: (1) the expense incurred through social media marketing activities, and (2) the total expense incurred by the Marketing Department over the same period of time. Include labor (wages, salaries, commissions, benefits), overhead (occupancy, utilities, supplies, advertising, legal fees, travel costs, etc.), technology (hardware, software, end-user operations, etc.) and campaign costs in this calculation. Include the expenses incurred through all sub-groups within the Marketing Department (e.g., Branding & Strategy, Content Marketing, Market Research & Analysis, Programs & Campaigns, and Public Relations) in the denominator.
KPI Formula :
(Social Media Marketing Expense / Total Marketing Department Expense)* 100