Social media is a popular way for credit unions to reach members and potential members. It can help build a strong brand and improve member loyalty. While social media may be new to you, it’s an important way for your CU to engage with its members. This strategy benefits your CU if you want to reach new members and maintain a positive reputation. The amount you spend on social media depends on your goals and budget.

The financial brand’s study of 100 prominent credit unions revealed that financial institutions spent approximately $1 billion on marketing on social media in 2014. These budgets include traditional marketing, advertising, and training. But how much do credit unions spend on social media? In 2014, the average credit union spent $3 million on social media. It is a large percentage, but it’s important to remember that this number is still relatively small and should not be mistaken for a definite ROI.

So now you know that how much do credit unions spend per year on social media. But there are some other important things you also need to know.

 

What does a marketing budget mean?

A marketing budget refers to the budget that has been allocated for marketing activities.  This investment is intended to allow you to execute a marketing strategy in the most appropriate contexts and to meet high-quality standards.
There are many ways to determine your budget.

  • Type of Businesses
  • Sales percentage
  • Digital marketing activities
  • Implementing strategies
  • The duration of the marketing campaign
  • Type of marketing campaign
  • Labor
  • Campaign goal

How much do companies spend on social media advertising? Many companies spend between 3% to 6% of their resources on marketing. But it can be different for different businesses having different goals.

 

Why should you have a budget for social media marketing?

A network marketing budget can be a way to promote a brand and ensure its momentum. It is also the most reliable way to measure the Return on Investment for the marketing department.

Social media marketing is crucial for the growth and success of a brand. 1 in 2 people has at least one account on these platforms. As the new generation arrives, this number will only increase. Social Media Marketing is the best way to let the world know that your brand exists.

However, it’s not just about posting content. Your brand may face a lot of competition, so it is important to invest in tools that will help you position yourself on these platforms.

 

Some Common Types of Social Media Marketing Budgets

Social media marketing budgets are subjective. However, we will give you examples of basic and comprehensive budgets that can work for any company.

 

Basic budget

Includes the development and management of a blog and network strategy.

  • Monitoring brand and competition
  • Strategy design
  • Preparation of a content plan (monthly, yearly).
  • Administration of profiles on social networks
  • Social networks customer service
  • Writing blog posts/blog optimization

 

Comprehensive budget

  • Blog strategy and social media
  • Management of blogs and social media
  • Advertising campaigns management

 

Advanced budget

Management of social networks, blogs, advertising campaigns, and online promotions.

  • The services of a community manager are paid
  • Payment for community manager tools
  • Payment to the blogger, and blogger tools
  • Reverse advertising and payment to the campaign manager
  • Contest tools payment

 

Why it’s important to have a marketing budget?

It is helpful to create a marketing budget for:

Help you to manage different Marketing strategies cost

You should know how much money you need to spend on each type of resource or action. This will help you determine how much money to spend on each marketing strategy.

If your goal is to increase your website’s online visibility and get more visitors, then you will need to invest more in SEO and content generation.

 

You can control the marketing department’s costs

It is easy to see which items are more expensive than expected and adjust your budget accordingly.

 

Social Media Is the New Market Store

Credit unions adapt to this new environment as the financial services industry grows and changes. While traditional marketing efforts continue to produce results, social media is increasingly playing an essential role in the marketing mix for many credit unions. This trend is fueled by the average American consumer who only visits a physical branch three times a year. In 2014, a credit union’s marketing budget was 14.6% of its total assets.

 

The average amount of money credit unions spend on social media varies, but the total is generally 0.10% of assets. However, adjusting the number to suit your specific situation is important. If your credit union is more significant than $250 million, you can reduce this figure by 0.01%. Similarly, you can reduce the amount by 0.02% if it’s smaller. If you’re a nonprofit, a single SEG, or are a community-focused institution, you might want to increase the amount to account for the additional costs.

How Much Do Credit Unions Spend per Year on Social Media

A couple of colleagues sitting in the office, discussing something

Social Media: A Tool to Increase Brand Awareness

While credit unions’ spending on social media is relatively small, it’s still a significant amount of money for any financial institution. A credit union can increase its brand awareness, grow its customer base, and attract new members by spending large amounts of money on advertising and digital marketing. The amount of money it invests in social media marketing is an integral part of its overall marketing strategy. It should be well supported if you want to succeed in your business.

 

While social media can be expensive, it’s still essential to have a strategy for the right approach to reach your target audience. This type of marketing can help your credit union expand its customer base, increase member satisfaction, and build brand awareness. And if you’re doing it right, it’s a wise investment. The best way to maximize the use of social media is to create an online presence that’s unique to your institution.

 

Besides being a great way to connect with your customers, a credit union can also use social media to gain new members. These organizations can share information with their members and create relationships with other organizations. Social media marketing is an important part of building a stronger brand and growing membership. A credit union can create a community that shares the same goals as your customers, and it can easily reach new ones.

 

In a recent Financial Brand study, credit unions spent 0.11% of their assets on marketing in 2018. By contrast, only 7% of their competitors spend this amount on social media. This is because they are competing with a more aggressive competitor. Using social media can capture new members and retain current ones. With more social media, you’ll be able to reach more people and grow your membership.

Related Article: How to Increase the Average CTR for Google Ads