Social Media Advertising: Costs, Benefits, & Best Practices [2025]

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Josh Pheneger
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With billions of dollars invested in paid social advertising every year, brands have many opportunities to connect and engage with their audiences.

Explore paid social media advertising, including what it is and why it helps you reach the desired audience organic social can’t.


Table of Contents

  1. What is Social Media Advertising?
  2. Paid Social Media Advertising vs. Organic Social Media Marketing (SMM)
  3. The Top 3 Benefits of Social Media Advertising
  4. How Does Social Media Advertising Work?
  5. The Best Platforms for Social Media Advertising
  6. 6 Social Media Advertising Best Practices & Strategies

What is Social Media Advertising?

Social media advertising, a part of digital marketing, uses paid ads on social media platforms to reach target audiences. Marketers and advertisers can run social media ad campaigns to increase followers, engagements, clicks, and views and boost brand awareness.

Unlike traditional advertising, which takes a broad approach, social media allows for highly targeted campaigns based on demographics, interests, behaviors, and location.


Top social media advertising statistics, according to eMarketer:

  • US social ad spending has grown by >20% almost every year since 2008.
  • AI tools like TikTok’s Smart Performance Campaigns and Meta’s ASC+ dominate strategies, with some D2C brands spending over 50% of their budget on them.
  • Retail advertisers will account for 30.8% of social ad spending.
  • Social video became the largest US social ad spending channel in 2023, making up 52.5% of it.

Paid social media advertisements appear in several formats, including static images, videos, and carousels. They are usually labeled with tags like “sponsored,” “promotion,” or “ad” to differentiate them from organic content.

paid social media advertising

An example of an Instagram post by Uber. It includes a “sponsored” tag so audiences know it’s an ad. 

Capturing consumers’ attention is increasingly challenging. Consumers are bombarded, making it difficult to stand out. Social media advertising offers a solution by targeting ideal customers at every marketing funnel stage.

For example, B2C brands can use pre-launch excitement through brand awareness campaigns, while B2B companies can re-engage audiences with remarketing efforts to drive high-ticket product sales.

Social media ads perfectly complement other forms of advertising (like Connected TV (CTV) or audio advertising). They also allow you to reach your audience across multiple devices, including smartphones and tablets, reinforcing your brand’s awareness and message.


How many social media users are there in the USA?
7 in 10 Americans will log into a social media platform today, with the average user accessing nearly 7 social media platforms every month.


Paid and organic social media marketing (SMM) involves different types of posts on social media.

Paid Social Media Advertising

Paid social refers to advertisements brands pay for to reach a targeted audience on social media platforms. This strategy helps brands reach a highly interested audience who may not have seen the brand before, driving leads and conversions.

Organic Social Media Marketing 

Organic social media is any content posted on social media for free. This includes updates, photos, videos, and stories shared on a brand’s social media pages.

Unlike paid social, social media marketing posts are shown to your followers and may reach their extended network through likes, shares, and comments. Algorithms may serve your posts to non-followers based on their interactions, but there’s no guarantee of reaching them.

paid social vs organic social

Boosting Organic Posts

Some social media channels like Instagram allow you to boost an organic post. You can pay to show your existing content to a wider audience beyond your followers. This can help expand your reach and increase brand awareness without the need to constantly create new dedicated advertising campaigns. 

However, to create an effective boosted post, you need to identify which organic content performs well. 


How does paid social complement an organic social strategy?

“An effective content strategy uses both paid and organic content to build trust, break into a variety of demographics, and establish consistency in the viewers’ minds. The more they see the product, the more likely they are to make a purchase over time.

Also, some social channels like Instagram allow you to boost an existing post. This is great because you can use the organic content you are already posting. However, in order for it to be effective, you need to identify which organic content performs well. Look for posts that have already garnered high engagement, such as likes, comments, shares, and clicks. These metrics indicate that the content resonates with your audience and has the potential to perform well with a broader audience.”

Image Description

Freelance Social Media Strategist

Why Use Paid Social Media Advertising? The Top 3 Benefits

Organic social media can only take you so far, with only 0.07% of a page’s fans engaging with the average organic post.

Social media ads amplify your organic efforts, extending your posts to target audiences beyond your usual reach.

Here are a few more benefits of paid social media advertising:

1. Social media reporting can help you identify key insights about your audience’s demographics, interests, & behaviors. 

All social platforms have built-in metrics, and some social media schedulers, like Buffer, take it a step further by including more social information.  

Meta Business Suite will show you

  1. Your ad account’s cross-platform spend.
  2. Post engagement for organic and boosted posts, including likes and comments.
  3. Demographic and geographic summaries of people who like your page and follow your Instagram business profile. 
  4. The overall performance of your Facebook and Instagram accounts, like reach trends.

Buffer and other social media scheduling tools show metrics across various platforms in one dashboard, so you can compare which platforms generate the best results and invest more time in them. 

2. Social ads can target specific audiences to match your customer profiles. 

Rather than casting a wide net and hoping to attract customers, paid social ads enable you to narrow your targeting and focus on those most likely to engage with your brand.


Example: Suppose you run a fashion boutique specializing in trendy streetwear for young adults. With paid social ads, you can target individuals aged 18-30, living in urban areas, and interested in fashion, streetwear, and urban culture.


3. Social media ads guarantee direct access to new audiences poised for conversion.

Organic reach is limited, and with tricky social media algorithms changing constantly, paid social guarantees you’ll reach the audiences you set up to target.

This also means you can reach audiences who don’t normally see your posts, increasing your odds of attracting new potential customers and helping bolster brand awareness.

Two-thirds of consumers use social media as a part of their shopping strategy, and around a third of shoppers turn to social media influencers to learn about products. 

Using paid social allows you to tap into these consumer behaviors and position your brand in front of new audiences ready to purchase.


More conversions, more clicks, more views = more $$$ for you.  

Our proven paid social strategies will guarantee you the results you’ve been looking for—more conversions, clicks, and views.


How Does Social Media Advertising Work?

Social media advertising depends on a dynamic mix of creative content, precise targeting strategies, and real-time engagement metrics.

Here’s a breakdown of how it all comes together:

1. Pinpoint the audience most likely to convert. 

With paid social media ads, you want to target the audiences most interested and likely to convert.

Gather demographic information about your audience and use audience insights from each existing social media account. 

With Facebook’s Audience Insights, you can see age and gender breakdowns, education levels, job titles, relationship statuses, and more.


How does KORTX Intelligence help identify audiences for paid social advertising campaigns?

“Our KORTX Intelligence research provides a wealth of data points about how specific audience personas spend time on social media platforms and details about demographics, shopping habits, and even device usage. More often than not, we discover that these insights lead to new social media strategies and untapped opportunities. It’s important to look beyond Meta as the default option and really dig into where brands can impact all social platforms.”

Image Description

Director of Strategy, KORTX

Find out which social networks your audience prefers. Tools like Keyhole.co can help you analyze which platforms to use depending on your audience. Enter a hashtag, and Keyhole will provide demographic information about how various markets use social networks.

You can also analyze your competitor’s content strategy to inform your own. Buzzsumo’s Content Analysis tab will analyze the top shared content across social networks in your industry. Look for patterns and take notes. What content formats do these audiences prefer? What social channels work best for your competitors? 

Based on your research, you should be able to narrow your target audience down to a specific demographic.

2. Align your campaign goals with the marketing funnel. 

A successful social media ad campaign starts with clearly defined objectives that align with your broader business goals and the specific stage of the marketing funnel you are targeting.

Top of Funnel (TOFU)

For brand awareness or reach, focus on increasing impressions, video views, or engagement (likes, comments, shares). These metrics show your ads are reaching a large audience and generating initial interest.

Middle of Funnel (MOFU)

To nurture leads or drive website traffic, center objectives around click-through rates (CTR), landing page views, or lead form submissions. These metrics indicate your ads are capturing attention and prompting action.

Bottom of Funnel (BOFU)

To boost sales or conversions, prioritize metrics like cost per conversion, return on ad spend (ROAS), or purchase value. These metrics demonstrate your ad’s effectiveness in driving tangible business results.

Avoid vague goals like “increase brand awareness.” Instead, set SMART goals that are Specific, Measurable, Achievable, Relevant, and Time-bound. For example, “Increase website traffic from Facebook by 15% in the next quarter.”


📚 Related article: What is Social Commerce: Stats & Strategies for 2024
Learn what social commerce is, some examples of paid social media ads, and explore top strategies to inspire your campaigns.


3. Tailor & test platform-specific ad creatives that spark engagement through interaction & visuals.

Your ad creative is the engine of your social media campaign. It’s the visual and textual representation of your brand’s message that captures attention, sparks interest, and drives action. To resonate with your target audience, master the art of visual storytelling and the science of persuasive communication.

  • Platform-Native Visuals: Use visuals tailored to the platform, like vertical videos for Stories or shorts and looping clips for Reels. Align your imagery with trends and formats that work on social rather than repurposing general ad content. 
  • Conversational Copy: Social media is like a two-way conversation. Write in a more casual, conversational tone. Speak in a way that invites likes, shares, or comments, engaging with your brand’s community.
  • Strong Call to Action: Tell your audience exactly what you want them to do (Shop Now, Learn More, Sign Up).
  • Interactive Elements: Social ads should encourage participation. Use polls, swipe features, or comment prompts to create a sense of interaction rather than passive viewing.
  • A/B Testing Across PlatformsTest variations that are platform-specific. What works on Instagram may not translate to TikTok or YouTube. Tailor your tests to the unique audience behaviors on each platform.

The next action in this Instagram Story social media advertisement is clearly defined in the CTA, “Sign Up.”


💡 Pro-tip: Craft at least 3 variations of your ad creative. Test different combinations of ad elements (copy, CTA components, visuals, etc) to find the most effective combinations for different audience segments.


4. Pick the right social platform based on your audience’s behavior. 

Each social platform offers unique engagement styles and content formats. Understanding these nuances helps tailor more effective marketing strategies.

Key Considerations

  1. Target Audience: Research where your audience actively engages–not just where they browse. Conduct thorough research to understand their preferred social media platforms, browsing habits, and content consumption patterns.Instagram and TikTok attract younger, visually-driven users, with TikTok favoring short video trends and Instagram better for curated storytelling. Facebook’s mature demographic leans toward long-form content and community engagement.
  2. Campaign Goals: Match your objectives to each platform’s strengths. For instance, LinkedIn is ideal for B2B lead generation, while TikTok thrives on creative engagement with younger demographics.
  3. Budget: Social platform ads vary in cost. Factor in the cost of ad types specific to each platform, like Instagram Stories vs. Facebook Newsfeed ads.
  4. Ad Formats: Each platform offers distinct ad formats. On Instagram, Stories and Reels dominate. Facebook offers carousels and lead forms, while TikTok focuses on short, viral clips. Choose formats that match the platform’s strengths and your audience’s engagement style.

In the end, you’ll need to test different platforms, formats, and messaging to see what resonates best with your audience.


How can you ensure your social media ads resonate with both the audience and the platform’s culture?

You need to tailor your social media ads to your audience and the platform. The best social media managers spend time on these platforms, scrolling, interacting, and reading comments. This helps you understand the platform.

For instance, TikTok demands a casual, short-form approach. If you show up on the FYP in a polished suit, presenting your business as though you’re in a corporate boardroom with overly polished rhetoric, it likely won’t appeal to the TikTok audience. Or worse, you’ll get some VERY sassy comments. This platform skews younger and favors a casual, creative vibe. An overly formal presentation will be seen as insincere.”

Image Description

Director of Content Strategy, KORTX

social media advertisement stats

5. Set a budget that balances both reach & ROI. 

Setting the right budget and bidding strategy balances your spending with achieving your goals. Social media managers allocate 27% of their budget to organic content creation and 22% to paid advertising, highlighting the importance of a balanced approach where both efforts complement each other.

social media advertising stats

When budgeting for your social media ads, you have several options, each with its own advantages and best-use cases:

  1. Daily Budget: Daily budgets set a maximum spending limit per day, providing tight control over expenses, ideal for testing various ad variations.
  2. Lifetime Budget: Lifetime budgets establish a total spending cap for the entire campaign duration, suitable for long-term initiatives or when you have a fixed budget.

Many social platforms offer Campaign Budget Optimization (CBO), which automatically allocates your budget across different ad sets to maximize results. This automation can save time and effort, but closely monitoring ad set performance is crucial to achieving your desired outcomes.

6. Let your ads run long enough to see results. 

Social media algorithms are complex, but understanding the basics can help you create ads more likely to be seen and clicked on. While each platform’s algorithm is different, they generally consider the following factors:

  1. Relevance: The algorithm prioritizes ads relevant to the user’s interests and past behavior.
  2. Engagement: Ads that get more likes, comments, and shares are more likely to be shown to a wider audience.
  3. Quality: The algorithm favors high-quality ads with clear visuals and compelling copy.

Social media advertising is an iterative process that requires continuous monitoring, analysis, and refinement to achieve optimal results.

7. Continuously analyze your data & adjust ads for the best outcome. 

Metrics provide quantitative insights into how your ads are performing. Important key performance indicators (KPIs) to monitor include the standard advertising metrics: impressions, reach, clicks, click-through rates (CTR), and more. 

Most social media platforms have analytics tools, like Meta (Facebook) Ads Manager, to help you track these KPIs, but these can be limited in scope and detail.

Other tools like Buffer, Hootsuite, and SproutSocial offer more comprehensive insights, such as:

  • Cross-Platform Comparisons: Compare performance across different social media platforms.
  • Advanced Analytics: Access detailed metrics and trends over time.
  • Custom Reports: Generate tailored reports to suit specific business needs.
  • Engagement Insights: Track interactions, comments, shares, and likes in more detail.

Using these tools helps you better understand your ad performance and refine your strategies for better results.

Analyze Your Campaign

Once you’ve collected data, analyze it to uncover valuable insights. Look for patterns and trends to understand what’s working and what’s not. Consider questions like:

  • Which ad formats are generating the most engagement?
  • Which audience segments are responding best to your ads?
  • Are there specific times of day or days of the week when your ads perform better?
  • Which keywords or targeting options are driving the most conversions?

Optimize Your Campaign

Based on your analysis, make data-driven adjustments to your campaigns. This could involve:

  1. Ad Copy and Visuals: Tweaking ad copy or visuals to make them more compelling.
  2. Target Audience: Refining your target audience to reach more qualified leads.
  3. Bidding Strategy: Adjusting your bidding strategy to optimize your budget.
  4. Ad Formats and Placements: Testing different ad formats or placements to see what works best.
  5. Calls to Action (CTA): Experimenting with different CTAs to encourage more conversions.

What are the best platforms for social media advertising?

“The best platform yields the best results for your business, increasing the odds of engagement, conversions, and sales. Then, you can launch a paid social strategy that targets the right people at the right time.
When determining the best platform for your social media advertising, consider your campaign goals and your target audience. If you want to target homebuyers (typically between the ages of 35 and 44), advertising on Facebook, Instagram, and YouTube makes sense.

Or, if you’re promoting beauty products for older women, your campaign goal might be to increase brand awareness and engagement, which is most likely to happen on Facebook and Instagram.”

Image Description

Sr. Account Manager, KORTX

The Best Platforms & Examples of Social Media Advertising

Each social platform offers unique features and targeting options to enhance your campaigns and deliver measurable results.

Explore the most effective platforms for running paid social media ad campaigns as well as examples of paid social media advertising.

1. Facebook (Meta)

Using its Meta (Facebook) Ads Manager platform, Facebook provides comprehensive advertising options across awareness, consideration, and conversion stages of the buyer’s journey.

You can set a choice of six campaign objectives for your campaign, including: 

  1. Awareness: Awareness objectives include brand awareness, reach, video views, store traffic.
  2. Engagement: Engagement objectives include engagement, video views, messages, and conversions.
  3. Leads: Lead objectives include lead generation, messages, and conversions.

Facebook Ad Formats

The most common ad types Facebook supports include:

  1. Flexible: Flexible ads automatically select the best media combination (image, video, carousel) for sales or app promotion campaigns.
  2. Single Image: Single image ads showcase a single image with a headline, description, link, and call to action.
  3. Video: Video ads can be up to 10 minutes long, with both non-skippable and skippable options.
  4. Carousel: Carousel ads display up to 10 images or videos, each with its own headline, description, link, and call to action.

social media advertisement

Additional Facebook Ad Formats

Facebook also supports more engaging ad types, including:

  1. Slideshow: Slideshow ads create a video-like experience using a series of still images.
  2. Collection: Collection ads feature a primary image/video with four images in a grid below. Clicking the ad takes the user to the product page, powered by Instant Experience, allowing them to view the landing page without leaving Facebook or Instagram.
  3. Instant Experience (formerly Canvas): Instant Experience ads are interactive, mobile-exclusive ads with up to 20 images or videos up to 2 minutes long.
  4. Lead: Lead ads allow users to fill out a form directly within Facebook or Instagram and can use image, video, or carousel formats.
  5. Messenger: Messenger ads appear directly in users’ Messenger inboxes for a personal touch.
  6. Stories Ads: Stories ads use full-screen, vertical ads in the Stories section of Facebook and Instagram.
  7. Augmented Reality (AR): Augmented Reality ads enable users to interact with virtual objects or try on products using their camera. 

Dynamic Facebook Ads

Facebook also offers dynamic ads that capture intent signals from customer interactions to show the right products to the right people. These ads automatically promote your product catalog across Facebook, Instagram, and Audience Network without creating individual ads.

Choosing the Right Facebook Ad Format

Selecting the ideal ad format affects your social media ads’ presentation and content capacity. Different formats offer various layouts and advantages based on your campaign objectives.

The ad objective you select influences the available formats. For example, a sales goal might use the “Collection” format to showcase multiple items, while a brand awareness goal might use a single image or video format.

How Much Do Facebook Ads Cost?

Facebook advertising costs vary depending on multiple factors such as industry, targeting, and campaign objectives. On average, advertisers can expect to pay anywhere from $0.30 to $2.00 per click, with costs potentially increasing for highly competitive industries or during peak advertising seasons.


What ad objective should I choose for Facebook?
Facebook recommends optimizing for Conversions, Purchase, Add-To-Cart or Registration to maximize your broad audience targeting. We also recommend an attribution window of 7 days for optimized bidding.


2. Instagram

Instagram is great for visually appealing, immersive advertising campaigns. With its robust shopping functionalities—buy buttons, Instagram checkout, product tags, and shoppable posts—It is also a top platform for social retailing.

Instagram offers ads like Facebook, managed through Meta (Facebook) Ad Manager.

You can target Instagram users based on location, demographics, interests, and behavior and create custom and lookalike audiences to find new users similar to your ideal buyer.

Target users across their buyer journey with these Instagram ad objectives:

  1. Awareness: Reach, frequency, brand awareness, local awareness.
  2. Consideration: Website clicks, video views, reach, frequency.
  3. Conversion: Website conversions, dynamic ads, mobile app installs, mobile app engagement.

Instagram allows you to run ads in the news feed and the Explore tab. Here are the eight ad formats currently available on Instagram:

Instagram Ad Formats

  1. Image ads: Image ads are basic and straightforward, featuring a single image, caption, and call-to-action button. They are great for showcasing products, promoting events, or conveying a simple message.
  2. Story ads: Story ads are full-screen, vertical ads between users’ Stories. They can include images, videos, and interactive elements like polls and questions.
  3. Video ads: Video ads are dynamic and capture attention. They appear in the feed or Stories and can be up to 60 seconds long or longer for IGTV ads.
  4. Carousel ads: Carousel ads are multiple images or videos in a single ad unit, each with its own caption and link. They’re perfect for storytelling, showcasing product variations, or providing a step-by-step guide.
  5. Collection ads: Collection ads are a main image or video with a product catalog below. Users can browse and purchase products directly from the ad.

social media ads

Additional Instagram Ad Formats

  1. Explore ads: Explore ads are in the Explore tab, where users discover new content and accounts. They help you reach a wider audience and increase brand awareness.
  2. Shopping ads: Shopping ads feature product tags that allow users to see product details and make purchases directly from the ad or the Instagram Shopping tab.
  3. Reel ads: Reel ads are short-form video ads (up to 90 seconds) that appear in users’ Reel feeds. Instagram offers shoppable ads within reels, so businesses can tag products within the reel.

How Much Do Instagram Ads Cost?

The cost per click (CPC) for Instagram is around $1.20, covering all clicks on an ad, including link clicks and interactions like likes, comments, and shares.

The Instagram CPC varies between $0.50 and $0.95 for ads with a destination URL.


✨ Shoppable Instagram Reels offer a new way to get discovered. ✨
As short-form videos take off, Instagram Reels offer a way to showcase your products. Instagram Reels are now shoppable, which means businesses can tag the product with a purchase link.


3. X (Twitter)

X, formerly Twitter, provides feature-rich options for audience segmentation by keywords, interests, and more. 

Ad Formats on X

  1. Promoted Ads: Promoted ads are core formats appearing in timelines and search results, including images, videos, GIFs, or text. 
  2. Vertical Video Ads: Vertical video ads offer full-screen, immersive experiences.
  3. X Amplify: X Amplify aligns promoted content with premium video from publishers and creators.
  4. X Takeovers: X Takeovers offer high visibility with Timeline Takeovers placing ads at the top of timelines for 24 hours and Trend Takeovers making branded hashtags top trending topics.
  5. X Live: X Live broadcasts live video events, creating real-time engagement for product launches, Q&A sessions, or behind-the-scenes content.

social media advertising

Additional Ad Formats on X

  1. Dynamic Product Ads: Dynamic Product Ads are tailored to users based on browsing and purchase history, showcasing relevant products to drive sales and retarget potential customers.
  2. Collection Ads: Collection ads feature a primary image or video with several smaller product images, providing a visual catalog.
  3. X Ad Features: X Ad Features enhance campaigns with conversation cards for engagement, website cards for lead generation, and app cards for driving downloads.

How Much Do X (Twitter) Ads Cost?

The average X (Twitter) ad costs between $0.26 and $0.50, and the average cost per follow ranges from $1.01 to $2.00.


Ads not converting?   

Let KORTX take a look. We can help your social media advertising into a lead-generating, sales-boosting machine.


4. LinkedIn

LinkedIn provides access to a professional user base of over 950 million, ideal for B2B marketing and targeting specific industries or job titles.

LinkedIn’s targeting options differ from Facebook and Twitter. They focus primarily on professional criteria such as education, organization size, sector, and job title.

LinkedIn Ad Formats

LinkedIn offers various ad formats to help achieve specific objectives. Here are the main types:

1. Sponsored Content: Sponsored Content reaches a highly engaged audience in the LinkedIn news feed.

  • Single Image Ads: Single Image Ads use eye-catching visuals for desktop and mobile to attract attention.
  • Video Ads: Video Ads share captivating video content for a deeper audience connection.
  • Carousel Ads: Carousel Ads tell interactive stories with multiple images or videos.
  • Event Ads: Event Ads promote LinkedIn Events directly in the feed.
  • Document Ads: Document Ads share documents like white papers to generate leads.
  • Thought Leader Ads: Thought Leader Ads sponsor content from company leaders to build credibility.
  • Click-to-Message Ads: Click-to-Message Ads direct users to a personalized message thread.
  • Connected TV Ads: Connected TV Ads deliver high-quality video ads on streaming platforms.

2. Sponsored Messaging: Sponsored Messaging engages your audience in LinkedIn Messaging, where professional conversations happen.

  • Conversation Ads: Conversation Ads send interactive, personalized messages to engage prospects.
  • Message Ads: Message Ads (also called In-Mail ads) deliver direct messages to prospects’ inboxes.
  • Lead Gen Forms: Lead Gen Forms use pre-filled forms for seamless lead generation.

3. Text and Dynamic Ads: Text and Dynamic Ads are cost-effective ads in the LinkedIn right rail.

  • Text Ads: Text Ads are simple PPC (pay-per-click) ads to drive new customers.
  • Spotlight Ads: Spotlight Ads showcase products, services, or events.
  • Follower Ads: Follower Ads promote your LinkedIn Page to grow followers.

How Much Do LinkedIn Ads Cost?

On average, LinkedIn advertising costs:

  • $2.00-$3.00 per click.
  • $5.01-$8.00 per 1000 impressions.
  • $0.26-$0.50 per send for Sponsored InMail campaigns.

LinkedIn requires a $10.00 minimum daily spend. They suggest advertisers spend $25 for new advertisers and $50-100 for existing advertisers using USD, and the equivalent of $25 for new campaigns in other currencies.

5. TikTok

TikTok’s algorithm and user behavior foster viral content, offering brands explosive reach. The platform’s focus on short-form, user-generated content encourages creativity and authenticity, ideal for playful, engaging brands. 

Like Instagram, TikTok has a thriving influencer community that amplifies your brand’s message to targeted demographics. TikTok is also enhancing its business model with advanced ad formats and CRM integrations, giving advertisers greater control over their campaigns.

social media advertisement

Click to see the full TikTok-sponsored post.

TikTok Ad Formats

  1. In-Feed Ads: In-Feed Ads are short-form video ads that seamlessly blend into users’ “For You” feeds, offering native advertising that feels less intrusive.
  2. Branded Hashtag Challenges: Branded Hashtag Challenges are interactive campaigns that encourage users to create and share content related to your brand, generating buzz and user-generated content (UGC).
  3. Branded Effects: Branded Effects create custom augmented reality (AR) effects or filters that users can apply to their videos.
  4. TopView Ads: TopView Ads are premium video ads at the top of the “For You” page when users first open the app.
  5. Brand Takeover Ads: Brand Takeover Ads are full-screen ads that appear when users open the app.

How Much Do TikTok Ads Cost?

As of 2024, TikTok’s average CPM rate starts at $10 per 1,000 views, and the average CPC is approximately $1. The minimum campaign budget requirement is $500. Additionally, TikTok imposes daily budget requirements of at least $50 per day at the campaign level and $20 per day at the ad group level.

6. YouTube Advertising

YouTube, the second-largest search engine and third-most visited website, is ideal for general advertising. Quality content on YouTube can also boost your organic SEO traffic by adding backlinks in your profile description. 

YouTube Ad Formats

  1. Skippable Video Ads: Skippable Video Ads play before, during, or after other videos and can be skipped after 5 seconds. 
  2. Non-Skippable Video Ads: Non-Skippable Video Ads, typically 15-20 seconds long, cannot be skipped and are ideal for delivering concise and impactful messages.
  3. Bumper Ads: Bumper Ads are short, 6-second non-skippable ads perfect for creating quick brand awareness or reinforcing your message.
  4. Display Ads: Display Ads are static image ads that appear next to the video player on the right-hand side of the screen. 
  5. Overlay Ads: Overlay Ads are semi-transparent ads that appear on the lower 20% of the video player, offering a less intrusive way to promote your brand or website.

Bellroy, a sustainable accessories retailer, grew sales with shoppable YouTube videos.

How Much Do YouTube Ads Cost?

On average, YouTube advertising costs $0.11 – $0.50 per view, with businesses typically setting a daily budget of $10. YouTube doesn’t require a minimum spend for your ad campaign, so how much you spend depends on the daily budget you set for your campaign.

7. Snapchat Advertising

Snapchat favors casual, fun, and visually engaging content, making it an ideal space for brands to authentically showcase their personality and connect with younger demographics.

Snapchat’s advertising platform offers a range of objectives tailored to various marketing objectives across the funnel:

  1. Awareness: Increase brand visibility and reach.
  2. Consideration: Drive app installs, app engagement, website traffic, video views, lead generation, and engagement with your brand’s content.
  3. Conversion: Encourage specific actions like website or app conversions, and catalog sales.

Snapchat Ad Formats

  1. Snap Ads: Snap Ads are full-screen, vertical video ads between Stories or within curated content, offering an immersive experience. They can include interactive elements like swipe-up links, app install prompts, or lead generation forms.
  2. Collection Ads: Collection Ads feature a primary image or video with four smaller product images below, allowing users to explore and shop directly from the ad.
  3. Story Ads: Story Ads are placed within Snapchat’s Discover section, which features curated content from publishers and creators.
  4. AR Lenses: AR Lenses are interactive augmented reality experiences that let users engage with your brand in a fun and memorable way. Brands can create custom lenses that overlay graphics, animations, or 3D objects onto the user’s real-world surroundings.
  5. Filters: Filters are overlays that add a touch of branding or creativity to users’ photos and videos, promoting brand awareness and engagement.
  6. Commercials: Commercials are non-skippable, six-second video ads that appear within Snapchat’s premium content, ensuring high visibility and brand recall.

How Much Do Snapchat Ads Cost?

The average “Cost Per Mille” (CPM) on Snapchat is around $3.03. Snapchat advertising offers flexibility for businesses of all sizes, with a minimum daily budget of just $5.

You have the option to set either a daily budget to control your spending each day or a lifetime budget for the entire campaign duration.

Social Media Advertising Best Practices & Strategies

Here’s how to optimize your social media ad campaigns:

1. Start small & scale with your budget over time. 

Diving headfirst into social media advertising with a large budget can be risky, especially if you’re new to the platform. 

A cautious and measured approach is key to success.

  1. Test the Waters: Start with a small budget on each platform. Use it to learn the nuances of the ad tools, targeting capabilities, and what kind of content resonates with the platform’s audience.
    For example, what works on Facebook may flop on TikTok, so spend time learning how each platform’s users behave without blowing your budget.
  2. Gradually Increase: As you gather data on what works, slowly increase your spend. Use insights from your audience’s behavior, ad performance, and engagement to refine your targeting, copy, and creative. Adjust your strategy based on what each platform’s audience prefers.
  3. Flexibility is Key: Social media is dynamic, so keep your budget adaptable. Shift funds toward campaigns or platforms that are performing well and pause or rework those that aren’t. Each platform evolves, and due to algorithm and audience preference changes, what works today may not work tomorrow, so stay nimble with your spending.

Taking a “start small and scale” approach reduces risk, giving you room to learn each platform, refine your ads, and grow your social ad spend strategically. 

2. Borrow winning ideas from competitors’ top-performing ads. 

When you’re getting started, look at what ads are running best. Researching competing ads, preferably direct competitors, can inspire your own paid social campaigns.

You can find past Facebook and Instagram advertisements through the Facebook Ad Library.

TikTok also has a Creative Center or Top Ads, so you can see the most successful ads on the platform, though you can’t search for specific businesses.

social media and advertising

3. Patience pays off: give your campaign time to optimize. 

While it’s important to track your ad’s performance—checking that pixels are firing and the budget isn’t draining too fast—avoid making hasty adjustments based on short-term results.

Don’t be afraid to break the mold and experiment with your paid social campaigns. Running campaigns takes time and offers a valuable learning experience to determine what strategies and approaches work best for your brand. 

Let a campaign run for at least a month without making any major adjustments in the initial week (or even the first few days).

Even if things initially appear discouraging, resist the urge to intervene too soon and allow your campaign to gather valuable data and insights.

4. Increase performance with multiple ad creative variations. 

Platforms like Facebook offer Dynamic Creative Optimization (DCO), which allows for testing multiple variations of copy, headlines, and visuals to optimize performance and automate the selection of the most effective combinations.

When you’re unsure which media or ad parts resonate with your audiences, dynamic creative will mix and match them in new ways to improve your ad performance. 


Example: A clothing retailer can use dynamic ad creative with Facebook. Facebook will take the different combinations of product images, headlines, and CTAs and test them against the audience you set. Then, it will automatically select and display the winning variations for different audience segments, resulting in better goal outcomes.


social media and advertising

An example of selecting multiple creative images for a campaign. 

Ad platforms were built to help you optimize your ads, so let the ads platform do its thing while your campaign runs.


How often should you update or change out your ads?

“A general rule of thumb is to switch out creatives every 4-6 weeks based on their performance, avoiding unnecessary changes to highly successful ones while addressing underperforming ones earlier.”

Image Description

Account Manager, KORTX

📚 Related article: What Is Dynamic Creative Optimization (DCO) & Why It Matters?
Learn how Dynamic Creative Optimization (DCO) can make your advertisements timely, efficient, and incredibly personalized.


5. Stop wasting your budget on strategies that aren’t working. 

Throwing together an image and some quick copy isn’t enough for social platforms. 

You need a focused strategy to get results. 

  1. Define Your Goals: Tie campaign objectives with the unique strengths of social ads. Whether it’s increasing Instagram engagement, driving traffic from Facebook, or converting leads on LinkedIn, set measurable goals tied to each platform’s capabilities. 
  2. Be Realistic About ROI: Social media ads can deliver great returns, but they require testing and optimization. Expect to experiment with different audiences, ad formats, and creatives. It takes time for social algorithms to optimize your ads and deliver consistent results.
  3. Set Realistic Expectations: Not all platforms will yield instant results. Instagram Stories may get quick engagement, but LinkedIn lead generation can take longer (especially since the last algorithm update). Be patient and track platform-specific KPIs to refine your approach. 

📏 What metrics do you use to measure a paid social campaign?
Paid social advertising offers various ad objectives that cater to different campaign goals. Whether you aim to increase video views, drive traffic, or generate conversions, you can select the appropriate ad objective, such as cost per video view, cost per landing page view, or cost per conversion.


Your Blueprint for Social Ad Mastery

Paid social media is the future of targeted marketing. To get the most out of it, you need to master the nuances of each platform and apply the right strategies.

As social platforms evolve, adding paid ads to your approach isn’t optional—it’s how you reach untapped audiences and drive real results. Get it right, and you’ll connect with people you wouldn’t otherwise reach.


📲 Turn scrolls into sales.  

Lean on KORTX’s expertise to generate new business through your paid social strategy.


About the Author

Josh Pheneger is an Account Strategist at KORTX. He likes to play golf, explore the city, and spend time in coffee shops.

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Josh Pheneger
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