SHOULD I SPEND BIG ON SOCIAL MEDIA?

Paid ads on social platforms can get your business in front of a lot of eyeballs. But don’t overlook the many other (and cheaper) ways to grow your customer base online.

- ADAM BORNSTEIN

Q: When it comes to customer acquisition, how important is paid social media compared with other digital channels? —John L., Houston

Social media has created a beautiful opportunity for entrepreneurs: It’s never been easier to get your message in front of hundreds, thousands, or even millions of people. But if you want to reach all those people, it’s going to cost a lot.

It’s a simple case of supply and demand, and social media platforms are limiting the supply. Organic reach—your ability to speak directly to the audience that chooses to interact with your business— has dwindled to almost nothing. On Facebook, organic reach touches around 6 percent of your audience. Facebook simply doesn’t show your posts to most of your followers…unless you pay for the privilege. That’s one reason why advertising inside social media has become increasingly expensive, as brands outbid each other in a competition for attention.