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Are social media ads worth the money?

03 October 2016 Adam Zuchetti
Social media ads

Social media ads may seem expensive and unnecessary to some, but do you need to spend money to make money? 

Social media ads can be expensive initially and may not to generate much ROI, but their true value is apparent when you switch them off and notice a definite drop in traffic, says Kate Morris, founder and CEO of retailer Adore Beauty.

The reason for this, according to Kate, is that for every customer who clicks an ad and visits your site or even makes a purchase, there is a greater number of people who saw the advertisement and remembered the name of your company.

Customers may not be actively clicking on an ad, but it is still valuable to keep your brand front of mind, Ms Morris said.


Instagram recently announced the number of businesses advertising on its platform more than doubled in the six months from February to August 2016.

Instagram now boasts more than half a million active advertisers, with Australia fourth on the list of the most active nations on the site.

“More than just following businesses, 60 per cent of people say they learn about a product or service on Instagram,” the social media company said.

However, as Lucy Given of LUC Design told REB sister publication My Business, companies need to understand what each of the many social networking sites are being used for by their customers, to target the right audiences with the right messaging.

“People are going onto Instagram to be visually inspired. If I put a sale on my Instagram account – say I’ve candles at 50 per cent off – no one in Buenos Aires or Tehran is going to be interested in that. But they would be interested if I was really inspired by a new design of hotel, or ‘Have a look at this incredible house that has just been built in Seattle’ or something like that,” Ms Given said.

“[Whereas] my Facebook fans don't really care about that. They want to know am I open tomorrow, do I have a sale on, what’s the new product that’s come into the store. So most of my Facebook fans are locals or state-based and most of my followers on Instagram are globally based.”

Are social media ads worth the money?
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