Social Media Marketing Agency Pricing Guide for 2024

How much is charged for social media marketing services in 2024? With the global social media marketing industry projected to surpass $200 billion by 2024, this question is more relevant than ever. Besides, we are actually talking about an...

May 25, 2024 - 21:03

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Social Media Marketing Agency Pricing Guide for 2024

How much is charged for social media marketing services in 2024?

With the global social media marketing industry projected to surpass $200 billion by 2024, this question is more relevant than ever. Besides, we are actually talking about an industry in which businesses invest thousands of dollars per month, depending on the scope and scale of the campaign.

So, understanding how to price social media marketing services is crucial for both digital agencies aiming to stay competitive and brands seeking the best value for their investment. In this guide, we’ll explore current pricing trends, and key factors influencing costs, and provide actionable insights to help you make informed decisions.

Whether you’re an agency refining your pricing strategy or a brand seeking clarity on what to expect, this guide will equip you with the knowledge needed to succeed in the evolving social media landscape of 2024.

Curious about what a social media marketing agency charges? Hold on a sec! Let’s break down the key factors influencing pricing for marketing services first. These elements have a big influence on how effective your social media marketing is overall and how much money you have to spend.

#1 Campaign frequency + duration

Longer and more frequent campaigns generally cost more due to ongoing management and optimization efforts. According to a study by eMarketer, campaigns that run for more than six months are 50% more likely to achieve their objectives compared to shorter campaigns.

#2 Location

Digital marketing agencies (freelance marketers or social media managers) located in major metropolitan areas tend to charge higher fees due to higher operational costs. The Digital Marketing Institute reports that agency fees in cities like New York and San Francisco can be 20-30% higher compared to smaller cities.

#3 Content creation

High-quality content creation (videos, graphics, articles) significantly impacts pricing.

#4 Technology & tools

Tools and technologies (e.g., AI-driven analytics, and automation platforms) used by a social media management company may charge more for the added value these tools provide.

In addition to tools, some automatic features that social media platforms offer to their users can change the costs; such as automatic bidding, targeting, and testing. When considering that detailed audience targeting and higher ad spend to reach specific demographics or achieve particular results can significantly increase costs, using those kind of features seems a good call.

#5 Scope of services

Offering comprehensive services (strategy, content creation, management, reporting) typically charges higher fees. On the other hand, focusing on specific areas like content creation or social media management may offer lower pricing for targeted needs.

#6 Pricing models

Agency pricing models boldly influence the charge, of course. Social media marketing agencies generally use one of the following pricing models:

Monthly retainers: A fixed monthly fee for a set range of services. This model provides predictable costs and is suitable for ongoing management and support.

Hourly rates: Charging by the hour for specific tasks or consultations. Hourly rates can range from $50 to $300 depending on the agency’s expertise.

Project-based pricing: A flat fee for one-time projects such as campaign launches or content creation. Project costs can vary widely based on the scope and complexity of the work.

In 2024, no doubt, social media marketing remains one of the most dynamic and cost-effective ways to reach a wide audience, but pricing can vary significantly depending on several factors (including the aforementioned ones.)

Content creation: Creating high-quality posts, images, videos (reels specifically), and other media. Prices can range from $500 to $5,000 per month depending on the volume and quality of content.

P.S. More frequent posting and higher-quality content require greater resources and higher costs.

Social media management: Crafting & sharing daily posts, handling community engagement, and monitoring typically cost between $500 and $10,000 per month, depending on the platform and level of engagement.

P.S. Managing multiple social media platforms increases costs.

Advertising campaigns: Running paid ads on platforms like Facebook, Instagram, and LinkedIn can vary from $500 to $50,000 or more, based on the target audience and campaign goals.

Reporting: Providing insights and performance metrics to measure the effectiveness of social media strategies can add $300 to $2,000 to the monthly cost.

Now, it’s time to see some figures:

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social-media-management-cost-by-services

Before jumping into the next section, here is a quick summary of the overview:

For brands, marketers, and digital agencies, navigating all social media marketing costs may be difficult, particularly when trying to get the most impact on a tight budget. Comprehending the various platforms’ price systems facilitates well-informed decision-making and maximizes advertising expenditure. This guide will assist you in efficiently planning your 2024 marketing budget by giving you an “estimated” overview of the costs of running social media campaigns on popular platforms.

Facebook Marketing Cost

As you already know, Facebook remains a versatile platform for reaching a broad audience, offering detailed targeting options to maximize your ad spend’s effectiveness. That’s why the social media channel is the most used platform by marketers (66%), followed by Instagram (54%). On the other hand, in its recent study, Shopify found Instagram users have a $65 average order value, $10 higher than Facebook.

On Facebook’s official blog, there is the following statement about ad pricing:

When you advertise on Meta technologies (i.e. Facebook, Messenger, Instagram, or Meta Audience Network), you decide how much you want to spend on advertising. Meta then tries to get you as many results as possible for that amount. If you want to spend USD 5 a week, you can. If you want to spend USD 50,000 a week, you can do that too.

When we search, we can provide that overview based on typical industry standards and practices:

Average ad costs	$200 – $10,000+ per month
Management costs	Small companies & freelancers: $500 – $1,500 per month Mid-sized companies: $1,500 – $5,000 per month Large companies: $5,000 – $10,000+ per month
Campaign costs	$1,500 – $3,000 (one-time)
Additional costs	Creative content creation (images, videos) may range from $300 – $2,000 per post.

Instagram Marketing Cost

Instagram is the preferred channel for marketers looking to reach younger demographics with visually appealing materials since it is perfect for image-driven marketing.

According to WebFX’s survey with 270 businesses, Instagram advertising costs $0.00 – $0.25 per click, $0.00 – $4.00 per 1000 impressions, and $0.03 – $0.08 per engagement.

Let’s be more specific:

Average ad costs	$200 – $10,000+ per month
Management costs	Small companies & freelancers: $500 – $1,500 per month Mid-sized companies: $1,500 – $5,000 per month Large companies: $5,000 – $10,000+ per month
Campaign costs	$500 – $1,000 (one-time)
Additional fees	Creating high-quality visual content (images, stories, reels) can cost between $300 – $2,500 per post

At that point, remember that four main factors determine Instagram advertising costs: Bid amount, ad relevant cost, estimated action rates, and competition.

More info on Instagram ads?

YouTube Marketing Cost

As widely known, YouTube is the greatest platform for long-form video ads. According to the YouTube Advertising page, Viewers say that they’re 2x more likely to buy something that they saw on the platform.

And we already know that video production is more expensive than other forms of social media ads. So much so that, video production costs can range from $1,000 – $10,000 per video, depending on complexity and quality.

Average ad costs

$500 – $20,000+ per month

Management costs

Small companies & freelancers: $1,000 – $2,500 per month

Mid-sized companies: $2,500 – $7,000 per month

Large companies: $7,000 – $15,000+ per month

Campaign costs

$1,500 – $3,000 (one-time)

TikTok Marketing Cost

Like YouTube, TikTok is a social media platform that is so assertive about advertising. According to the official website of the video-sharing platform, 67% of TikTok users agree that the platform inspired them to shop even when they weren’t looking to do so.

But the bold question is how much to do so.

First off, TikTok advertisements begin at $10 per 1000 views.

Additionally, you have to spend $500 or more on a campaign. That means you won’t employ official ads on TikTok for a low-cost campaign.

There are also different pricing models for various types of content. Here is a quick table:

Let’s be more specific:

Average ad costs	$500 – $10,000+ per month
Management costs	Small companies & freelancers: $800 – $2,000 per month Mid-sized companies: $2,000 – $5,000 per month Large companies: $5,000 – $10,000+ per month
Campaign costs	$1,000 – $2,000 (one-time)
Additional fees	Creating engaging TikTok videos can cost between $500 – $3,000 per video

In conclusion, setting the right price for social media marketing services in 2024 requires a thorough understanding of the various factors that influence costs and the current market trends. Both digital agencies and brands can benefit from a well-structured pricing strategy that aligns with their goals and resources.