Budgeting for social media can be tricky. Too little and you might not reach enough people, too much and you could be spending money unnecessarily. Many factors go into budgeting, but one of the biggest is the size of your credit union. As a marketing agency in Lincoln, NE, we work closely with credit unions of all sizes and are here to help you break down how much you should spend on social media and online advertising each year.

Average Spend of Small Credit Unions

How much your credit union spends will depend on how many campaigns you have and which platforms you use to launch the ads. For our purposes, we’re going to look at Facebook specifically. 

We’ve worked with credit unions of all sizes, and on average, smaller financial institutions spend roughly: 

$1,254 – $3,500 on media spend per month (the cost of running ads) + ad spend (paid to Facebook each month).

The NCUA classifies small credit unions as those with less than $100 million in assets. Generally, small credit unions have less than 10,000 members.

Average Spend of Large Credit Unions

$8,600 on media spend per month (the cost of running ads) + ad spend (paid to Facebook each month)

In our experience, large credit unions as those with more than $100 million in assets and, on average, above 10,000 members. 

As we mentioned above, pricing will fluctuate depending on the time of year, the urgency of a sale, or if the credit union has multiple campaigns running in tandem. For instance, if the credit union runs a 3-day-only special auto loan rate (we call this a flash sale), plus their standard ads for other products, this could be higher. If you’d like to take an even closer look at how much money credit unions should set aside for marketing on social media, take a look at our pricing breakdown.

Now that we have broken down the average yearly spend of different-sized credit unions, let’s take a look at some of the key benefits of advertising on platforms such as Facebook. 

Publicize Flash Sales and Promotions

One of the fastest ways to increase overall brand awareness and gain sales or signups is to have a flash sale. 

A flash sale is a sale (like a special 3-day-only auto loan rate) used to bring in new members and gain more loans. It looks like this:

1: We run ads on Facebook for 3-4 weeks before the sale, giving people an opportunity to sign up for a reminder email once the sale begins (so they don’t miss out). 

2: On the day the sale begins, we send everyone who signed up for the email reminding them that they only have 3 days to complete their loan application if they want to take advantage of this special rate. 

3: Watch the loans roll in! 

Our Lincoln marketing agency has created flash sales for Halloween, Black Friday, and more! But the best part is, credit unions don’t need a holiday to celebrate low rates or other unique selling points! 

As SendPulse puts it, “A strong sense of urgency and a low price during flash sales are popular among brands. Limited offers leave no time for customers to think, and a significant discount entices buyers to make impulse purchases.”

Creating a sense of urgency for members and non-members helps generate interest, and crafting an online campaign (particularly on Facebook) will help spread the word quickly. You might even generate $5 million in new loans in 3 days, just like we helped Credit Union of America do!

Reach Your Target Audience

Since our marketing agency has run several flash sales for credit unions, we are fortunate enough to know who and how to target on Facebook for maximum results.

When our PPC agency creates a new advertising campaign on Facebook, we first look at who the target audience will be and how best to market to them. By narrowing our audience, we, therefore, speak to the exact people who will be interested in what our clients are promoting. 

We agree with Brand Master Academy when it comes to knowing your target audience. They write, “Understanding the people who experience the problem you solve is, without doubt, one of the most critical tasks in the entire realm of branding.”

The target audience chosen for a specific campaign influences copy development, design, and the overall message we create. Social media advertising platforms then deliver that message to the exact people necessary to generate a successful campaign. 

Bottom line, online advertising is crucial for credit unions, and understanding your social media budget is the first step in the process. Consider the above ideas and reach out to us when you’re ready to get started!