How Loan Officers Should Budget for Social Media in 2024

Does your 2024 marketing budget match your goals? If you’re missing social media - a critical piece of your marketing - your business may be left behind.

Loan officers looking to build relationships and generate leads in 2024 need to add a social media budget allowance to the overall marketing plan.  While you may have funds set aside for physical products like mailers or flyers, it’s critical to also dedicate a budget for social media marketing in 2024.  

Times aren’t changing; they’ve already changed. Social media marketing isn’t a “nice to have,” it’s essential for your business’s growth. 

The Importance of Social Media for Loan Officers

Year over year, we’re seeing the value of social media accelerate. It’s not all dancing videos anymore (although we’d love to see your moves). Audiences are turning to apps to stay connected and informed. 

Your digital presence is now your business’s calling card and a solid opportunity to build a connection with your customers. Not only is social media vital for building brand awareness, it’s becoming the norm for businesses to use social media as a customer service tool.  

According to Forbes, 77% of businesses are using social media to reach new customers and drive revenue. 

Savvy loan officers are building credible reputations on Facebook, Instagram, TikTok, and beyond. They’re also setting their social media marketing budgets to include lead generation. 

Setting Your Social Media Goals

While social media offers a strong return on investment, it does take planning to maximize the potential. Before allocating funds to your social media strategy budget, start with defining your clear, measurable goals for your social media efforts.

Consider these social media key performance indicators:

• Increased leads
• Engagement rates
• Conversion rates

Remember to also include a timeline for your goals (i.e. “Increase leads by 10% quarterly”).

Naming your goals and timelines should direct your budgeting of marketing funds. For example, if your goal is to increase leads, you may consider a Facebook campaign that drives traffic to sign up for your monthly newsletter. If you’re looking to increase engagement, you may consider a targeted ad tailored to your ideal audience.

Not sure what to post on social? We can help build your compliant, one-touch social media content library.

Understanding Your Social Media Marketing Costs

Wondering where your social media marketing budget should go? Let’s take a look at typical expenses:

Content Creation

Your costs will include creating high-quality, engaging content including graphics, videos, and articles. Want it done for you? Learn more about SocialCoach.

Advertising

With stellar content prepared, your marketing funds can be spent running paid advertisements on platforms like Facebook, Instagram, and LinkedIn.

Tools and Software

Your costs include social media management tools, analytics, and automation software.

Training and Development

Social media is ever-changing! Budget and invest in  learning new social media strategies and tools.

Allocating Your Budget

We’ve broken down some typical buckets for spending on your social media. Now we need to examine where and in what percentages you’ll allocate those funds.

Ahead of any decision making, it’s important to remember that social media is fluid.  Your social media budget should have guide rails, but also the flexibility to adapt.

So how do you jump in? Take a look at your competitors’ online presence to audit their social media strategy. Where is their message hitting and where is it falling short? 

Consider also who you’re trying to reach and where they spend their time. Here are a few stats to consider from PEW Research:

If your target is this particular demographic, it’s clear where you’ll find a larger audience of potential homebuyers.

Tips for Budgeting Effectively

We know the impact of social media and want to max out the return. Consider these areas for effectively budgeting your social media marketing funds.

Prioritize Spending

You can’t be everything for everyone everywhere. Instead, identify and focus on the platforms and content types that yield the best ROI for you.

Use Free Tools

There are countless free and low-cost tools to streamline your processes. Don’t undervalue the best free social media boost: your engagement on the platforms.

Track and Adjust

Set it and forget it doesn’t work with social. Regularly analyze your performance and spending, adjusting your budget to those elements that are performing well.

Calculating Your Social Media Budget

You’ve heard the phrase, “You’ve got to spend money to make money.” But how much money should you be spending on your social media marketing efforts?  

Small Biz Trends offers the formula of 7-10% of your company’s overall revenue on marketing. Larger, enterprise businesses may spend up to 15%. If you’re looking for exponential growth with a focus on brand awareness, you may see a short-term increase in your social media strategy budget.  

In a recent survey of CMOs, they predicted spending almost 19% of their marketing budgets on social media with plans to increase that percentage over the next five years. 

Maximizing Your Social Media ROI

Believe it or not, your social media success is data driven. To maximize your return from your social media marketing budget, study the numbers. Here are a few things to consider:

• Who is your intended audience? 
• What content yields the best engagement?
• What sparks the most user interaction?

The first question can and should be answered ahead of any budget spend. As you create content, you’ll be able to adjust your spend and planning to match what earns you the best ROI.

Common Budgeting Mistakes to Avoid

Those who jump right into social media marketing without a strategy often find themselves making avoidable budgeting mistakes. Here are some solutions to help you avoid common pitfalls:

Mistake #1: Overspending on Ads

It can be tempting to want to blanket the market with ads to fast-track brand awareness.  Unfortunately, you’ll likely find your messaging out in the cold.  

Instead, start your ad spend with a portion of your budget. When you see an ad performing well, increase your ad spend accordingly.  

Mistake #2: Neglecting Content Quality

Each post you share serves as a possible first impression. It’s important to put your best virtual foot forward and share content you’re proud of.  

Save time by creating multiple social media pieces at once. You can also repurpose content that’s performed well to be used again.

Mistake #3: Not Analyzing Results

How do you know if your efforts are hitting your intended goals? Ignoring social analytics can have you blowing your budget with content that isn’t converting.  

Plan time each week to review your analytics for your company website, social media platforms, and sales. Then adjust your social media spend accordingly.

Success Stories

Shouting the praises of loan officers who are killing it on social media is just one perk of the job.  We love seeing SocialCoach reviews like this one, “In the last 28 days, my social posts have reached 4,400 people and over 9,300 views. That’s a big deal!”

Ask yourself what almost 10K views could do to transform your business. There’s no way to cold call that number of potential clients.  

When you harness and budget for social media marketing, you’re exponentially increasing your exposure. In today’s market, that’s essential for your business.

Conclusion

As we kick the new year into high gear, it’s time to review social media marketing budgets. With well-planned budgets that are rooted in data and deliverables, you're set to crush your goals for 2024.   

If you need help maximizing your ROI on social media, SocialCoach is here to help from development to compliance. Click here to get a demo of SocialCoach.