Is Social Media Advertising a Waste of Money?

By David Remmerswaal | Thursday, November 17, 2016

What you need to know about the cost-effectiveness of advertising on Facebook.

Recent figures obtained by the NZ Taxpayer’s Union show the Rotorua Lakes Council spent $20,845 on Facebook Advertising and $8,010 on LinkedIn advertising in the last financial year. The Union claims this spend was being “wasted” on “social media propaganda” – which brings a valid question about the value of social media advertising for any business: Is social media advertising wasted money?

The answer is no. If done correctly, Facebook advertising is one of the most cost effective forms of advertising available. For a matter of dollars, you can reach hundreds or thousands of people in the exact market you want to target. You can even target specifically by gender, age, location, marital status, education, and interests. This level of targeting means you don’t waste marketing budget reaching your ‘non-target’ market, as is often the case in traditional media. Facebook is a modern communication channel used by over 2.5 million kiwis who on average visit the site 14 times every single day.

Facebook is a very useful tool for being able to promote a brand, product, service or destination, which has far reaching effects on the local economy.

Those labeling this ‘propaganda’ need to know that they are missing out on valuable advertising opportunities by ignoring the power of social media.

Author: David Remmerswaal

David is well-travelled, having spent time in Europe, Asia and the Pacific. In his spare time, David enjoys the Rotorua outdoors, cooking, and attending live music shows, as well as spending time as a mentor with Big Brothers Big Sisters Rotorua.

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