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Which Social Media Channels See the Most ROI? [New Data + Expert Tips]

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Which Social Media Channels See the Most ROI? [New Data + Expert Tips]

As any marketer knows, social media is an undeniably powerful tool to reach new audiences and connect with existing customers.

However, while it’s important to meet your audience where they are, it’s equally critical to know which social media channels offer the best ROI for your business.

Download Now: The State of Social Media Trends [Free Report]Here, we’ll explore which channels provided marketers with the highest ROI in 2023. Plus, hear from experts at Talkwalker, Socialinsider, Casted, Brandfolder, LiveChat, Sprout Social, MarketingLabs, Rakuten Advertising, and HubSpot to learn how to leverage those channels to increase engagement and drive sales.

Let’s dive in.

Table of Contents

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What is social media ROI?

Which social media channels have the best ROI?

Which social media tactics or strategies have the best ROI?

What is social media ROI?

ROI stands for return on investment. When applied in the context of social media, it’s the return on investment from your social media activities and expenses.

One of the most popular ways to measure social media ROI is through paid advertising. That said, how you calculate ROI depends on the specific goals of your social media marketing and the metrics you use to measure it.

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For instance, if your goal is to build brand awareness, you might prioritize metrics that demonstrate reach or engagement — such as new followers, impressions, audience growth rate, social shares, and more. 

Check out this helpful guide to learn more about calculating social media ROI.

Which social media channels have the best ROI?

Social media ROI chart

According to HubSpot’s 2023 Social Media Trends Report, Instagram is the social media channel that provides marketers with the highest ROI. Facebook, another Meta-owned platform, trails closely behind.

Marketers also cite Instagram as the most effective channel for engagement. It’s no surprise that more than half of marketers (52%) plan to increase their investment in the platform in 2023.

By comparison, other social channels in the list — including Twitter, Snapchat, and BeReal — all ranked much lower, with less than 10% citing each platform as the best channel for ROI.

Let’s dive into each of these platforms to uncover why the top 3 social media sites perform better than others when it comes to ROI — and how you can leverage them.

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1. Instagram

Recently surpassing two billion monthly active users, Instagram lands the top spot for ROI. Let’s explore why.

Instagram offers marketers the ability to increase reach and boost sales from non-organic content, such as Instagram Ads and branded content. However, it also shines when it comes to generating ROI from organic content.

Social Media ROI: Chart measuring ROI from Organic social media Content

As Instagram continues to expand its e-commerce capabilities, it’s become an effective tool for generating business. In fact, 90% of users follow at least one business on Instagram, and 50% of users are more interested in a brand after seeing ads for it on Instagram.

Instagram is also top-dog in the influencer marketing space. Last year, it was the most popular platform for influencer marketing in the U.S. – and more marketers are planning to leverage Instagram for their campaigns in 2023.

2. Facebook

Facebook is the most popular social media platform worldwide right now, drawing more than 2.89 billion monthly active users. In short, Facebook has an undeniably impressive reach. It also offers advertising opportunities to more than 200 million businesses, making it one of the most popular advertising platforms.

With Facebook, marketers can advertise on a user’s News Feed, via Messenger or video, and more. Marketers can also leverage Facebook Lead Ads to encourage Facebook users to fill out a lead generation form without leaving the social platform.

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One of the major benefits of Facebook’s advertising tools is its segmentation abilities. You can target your ads towards certain audiences depending on interests, demographics, behaviors, or even connection to your business — like whether they’ve attended one of your events, or have friends who’ve liked your Business Page.

Nicole Ondracek, HubSpot’s Paid Advertising Marketing Manager, agrees that Facebook is an incredibly viable channel.

“At HubSpot, Facebook is a valuable channel for us in driving return on ad spend. A main reason why is that we can provide our content to a relevant audience using Facebook’s audience targeting features. For instance, Facebook’s lookalike audiences allow us to go after people who look like our current customers,” she told me.

“Facebook’s algorithm is great at finding similar audiences who are likely to convert, which is why we see a positive return on investment going after these types of audiences.”

Take a look at HubSpot’s How to Run Facebook Ads: A Step-by-Step Guide to Advertising on Facebook to learn how to set up your own Facebook ads.

3. YouTube

YouTube receives a staggering 34 billion monthly visits and commands an audience of 2+ billion people. Based on these stats alone, there’s a good chance your audience is on YouTube.

Unsurprisingly, 47% of marketers plan to increase their investment in YouTube in 2023. It’s also no coincidence that more than half of marketers (54%) say long-form content is effective on social media – and YouTube is the undisputed hub for this type of content.

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Another notable advantage of YouTube is its popularity across demographics. For instance, in the last three months, 83% of Millennials have visited YouTube, followed by 81% of Gen Z, and 79% of Gen X. For Baby Boomers, YouTube is their second favorite social media app.

4. LinkedIn

Despite only roughly 10% of marketers rating LinkedIn as their top channel for ROI, LinkedIn is an incredibly effective channel for lead generation and nurturing. Over 750 million professionals use LinkedIn for networking, career advancement, and more.

The platform offers a variety of tools designed to increase your business’ ROI, including Sponsored Content, Sponsored Messaging, Text or Video ads, and more.

To succeed on the platform, you’ll want to create valuable content that resonates with your LinkedIn audience. Conduct research to determine which types of content perform best on LinkedIn — and which content will perform best with your target audience — to ensure you’re hitting the mark here.

Additionally, try running experiments when you start using LinkedIn’s advertising tools. For instance, Cellular IoT Connectivity company Aeris set up an ad plan and tracker to determine which targeting combinations worked best for the brand, which failed, and which generated the highest-quality leads. As noted in this post, “It took rounds of testing and optimization to get to [the brand’s] 25% submission rates.”

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Now that we’ve explored a few of 2023’s most popular social channels, let’s explore the strategies and best practices you can implement to increase your ROI across platforms, according to experts.

Which social media tactics or strategies have the best ROI? 

1. Conducting extensive research to understand your audience.

First and foremost, it’s vital you understand your audience before creating any social media campaign. If you don’t do your research, you risk spending time, money, and resources on the wrong channels — and missing out on more profitable connections elsewhere.

As Dan Seavers, Content Marketing Manager at Talkwalker, told me, “No matter the social media channel, the best way to increase your ROI is by improving your consumer intelligence. Get to know your customers better than your family, and understand what they’re saying about your products, and where they’re discussing them.”

“That way, when you launch a campaign, you’ll be hyper-relevant. Not a jarring ad that interrupts a customer’s life, but a well-timed, well-targeted experience that people will engage with instantly.”

social media roi: Dan Seaver's strategy for increasing ROI on his company's social channels

2. Creating more video content — and testing out vertical videos.

People love videos – and yet, it seems most brands rely on images when advertising their products or services, and that’s a mistake.

Adina Jipa, co-founder of Socialinsider, told me, “The most underused social media post is video content, which boosts engagement across all social media platforms.”

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“Facebook wants to become a video-first platform and favors pages with video content, but for most brands, it is [primarily] a photo-sharing platform.”

Jipa adds, “A recent study about Facebook video strategy shows that only roughly 15% of the content [on Facebook] is video, while photos represent 38.58%.”

To stand out and increase ROI, consider how you might incorporate video into your social media efforts.

Additionally, consider testing out different types of video formats across your channels. For instance, Facebook offers brands the opportunity to create vertical video ads for the mobile-friendly user.

As Jipa points out, “you can use vertical videos on ads to get more clicks. According to this poll, almost 69% of marketers say video ads outperform image and plain text ads on Facebook. 81% of Facebook users only access the platform via mobile devices, so using the vertical video format allows you to get more visibility and increase the chances of getting more clicks. Facebook videos ads can increase the CTR by 2-3X.”

3. Re-using content across channels.

Most social teams create content in silos. Perhaps they tell one message via an Instagram post, and then create entirely different materials for a YouTube video or Tweet.

This undoubtedly requires a lot of time, effort, and resources — which can become frustrating when you don’t see the ROI you need from these channels.

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“Far too often, content is created for one-and-done campaigns or promotions,” Casted’s CEO and Co-founder Lindsay Tjepkema says. “This means marketers are working harder and harder to constantly produce more and more, yet ROI and ROE (return on effort) results are disappointing — and social is no exception.”

She continues, “To change this, we must stop creating content for content’s sake and start focusing instead on creating content that educates, entertains, and delights and can be broken down and amplified across all other channels — like social — not just once, but many times over. When you focus on creating engaging content that can be used in multiple ways across channels, you’ll see improved ROI and ROE (return on effort) across your campaigns — including your social activation.”

To repurpose your content across channels, perhaps you post snippets of a full YouTube video on Facebook or Instagram. Alternatively, maybe you take text from a blog post and re-post on your channels to add value from your existing content, repurpose user-generated content across channels.

There are countless ways to refresh and re-use content to appeal to new audiences in unique ways without exhausting your social team.

4. Setting clear goals and devising a social strategy that works for your brand.

It’s difficult to achieve results on social without taking the time to set clear goals for your team, and ensuring you’ve all discussed an appropriate strategy to get you there.

As Brandfolder’s Senior Digital Marketing Manager Amanda Turcotte told me, “In order to achieve a return on your social media investment, you must have clear goals set before any tactical planning takes place. Various social media tactics can be applied differently to each of the platforms, meaning they’ll produce different outcomes. So your goals need to be determined up front to ensure they’re aligned with your social strategy.”

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social media roi: brandfolders tips on improving social media roi

Once you’ve determined your social goals, you’ll want to create a consistent posting strategy so your audience knows when, and how often, they can expect content from your brand. To make this easier, try using a social posting tool like HubSpot’s Social Inbox Tool or Later.

Turcotte told me, “In order to move your team from strategy to action and keep everyone on the same page, it’s crucial to develop a regular posting plan that documents your approach across each channel, located where all team members have access. “

Agnieszka Jaśkiewicz, Head of Social Media & Community at LiveChat, agrees that creating a strategy and using tools to support your team’s goals is critical for finding success on social channels.

As she puts it, “The greatest area of ‘untapped potential’ for most brands comes in the form of streamlining creative workflows to support the volume needed for quality social activity. Digital workspaces that allow creatives and marketers to collaborate from a central location to stage, revise, and produce content limits back-and-forth communication and unnecessary steps in production.”

Additionally, Jaśkiewicz says, “Digital templates for creative assets — set to the specifications of the organization’s core social media platforms — can also add agility to social media managers’ ability to publish, allowing teams to be more timely and quickly act on new opportunities.”

5. Allow your users to purchase your products or services on social media platforms.  

Over the past few years we’ve seen rise to a new trend: social commerce.

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In essence, social commerce is the ability to purchase from a brand within a social platform without leaving the site. Examples include shoppable ads and chatbot checkout.

Rachael Samuels, Senior Manager of Social Media at Sprout Social, told me she sees social commerce as a great opportunity to increase ROI on social channels.

Samuels says, “Social media has quickly become a primary communication channel for brands and consumers alike. As a result, marketers must seek new ways to engage with audiences while keeping other goals, such as lead generation, top of mind.”

“One way we’re seeing this unfold is through offerings like social commerce, which not only provide more seamless buying experiences for customers, but equip marketers with the ability to show direct attribution and ROI as a result of their efforts.”

Samuels adds, “To maintain this momentum, marketers should ensure their tech stack enables them to integrate their CRM and social management tools so they can easily surface social insights with their broader sales and support teams.” 

6. Use UTM tags for tracking. 

One reason you might not be seeing the ROI you’re hoping for? Perhaps you’re just not tracking properly.

As Matt Janaway, CEO of MarketingLabs, told me: “Tracking is now more important than ever thanks to the complications of iOS privacy improvements, so to really yield the best ROI, you have to make sure you are using UTM tags on all links. This way, you can correctly track the performance of your campaigns in Analytics.”

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Janaway adds, “This should give you the data you need to make decisions that can drive more engagement and ROI.”

7. Encouraging your employees to become brand ambassadors.

One area of major untapped potential? Your employees.

As Casted’s Tjepkema tells me, “Employee activation is a huge and mostly untapped resource for brands. As consumers, we’re far more driven to engage with user-generated content, yet so many brands spend too much time and money trying to only push content from their own brand instead of enabling their employees (and partners, brand fans, etc.) to amplify their content.”

social media roi: strategy for increasing social media ROI according to Casted's Tjepkema

“Rally your employees around the content you’re creating and encourage them to share it with captions that show their unique and personal perspectives. This is a great way to help each member of your team build their personal brand, while also amplifying your content to audiences in a more authentic way.”

LiveChat’s Jaśkiewicz agrees with this notion, saying, “[You should] give employee advocacy a bigger seat at the table in your social media strategy, especially when it comes to LinkedIn. It takes some time and effort to provide people with the knowledge and imply the ‘brand ambassadors’ mindset in the organization — however, employee engagement is a cost-effective way to increase your reach organically.”

HubSpot, for instance, created #HubSpotEmployeeTakeover on its HubSpot Life Instagram account. The campaign helps show audiences the faces behind the brand, and creates a sense of community and authenticity that you wouldn’t find with branded content alone.

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social media roi: Instagrams employee takeover

8. Leverage Meta’s Advantage+ Shopping Campaigns.

It’s no secret that Meta’s suite of platforms — namely Instagram and Facebook — packs a huge ROI punch. Yomi Arokoyo, VP of Performance Solutions at Rakuten Advertising, attributes this to Meta’s powerful algorithm.

He tells me, “Each social platform has improved its algorithm over time to be more intuitive and automated, but none more than Meta. With Meta’s new tool Advantage+ Shopping Campaigns, brands can find new customers in places they never even thought to look.”

Launched globally in 2022, Advantage+ Shopping Campaigns largely rely on AI and automation to find the right audience for your ads (as opposed to manual targeting). On top of that, it even adjusts ad formats to understand which format performs best.

To take advantage of this new tech, Arokoyo recommends employing as much creative differentiation as possible. For instance, add old creatives into the mix, or cut up longer videos into smaller, more digestible clips. This gives the algorithm more data to determine which campaigns are effective.

Back to You

Increasing ROI across your social channels won’t happen overnight — but by applying these strategies and remaining dedicated to iterating on your strategy as you collect audience insights over time, you’ll surely begin to see stronger results from your social efforts.

Happy posting!

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Should Your Brand Shout Its AI and Marketing Plan to the World?

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Should Your Brand Shout Its AI and Marketing Plan to the World?

To use AI or not to use AI, that is the question.

Let’s hope things work out better for you than they did for Shakespeare’s mad Danish prince with daddy issues.

But let’s add a twist to that existential question.

CMI’s chief strategy officer, Robert Rose, shares what marketers should really contemplate. Watch the video or read on to discover what he says:

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Should you not use AI and be proud of not using it? Dove Beauty did that last week.

Should you use it but keep it a secret? Sports Illustrated did that last year.

Should you use AI and be vocal about using it? Agency giant Brandtech Group picked up the all-in vibe.

Should you not use it but tell everybody you are? The new term “AI washing” is hitting everywhere.

What’s the best option? Let’s explore.

Dove tells all it won’t use AI

Last week, Dove, the beauty brand celebrating 20 years of its Campaign for Real Beauty, pledged it would NEVER use AI in visual communication to portray real people.

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In the announcement, they said they will create “Real Beauty Prompt Guidelines” that people can use to create images representing all types of physical beauty through popular generative AI programs. The prompt they picked for the launch video? “The most beautiful woman in the world, according to Dove.”

I applaud them for the powerful ad. But I’m perplexed by Dove issuing a statement saying it won’t use AI for images of real beauty and then sharing a branded prompt for doing exactly that. Isn’t it like me saying, “Don’t think of a parrot eating pizza. Don’t think about a parrot eating pizza,” and you can’t help but think about a parrot eating pizza right now?

Brandtech Group says it’s all in on AI

Now, Brandtech Group, a conglomerate ad agency, is going the other way. It’s going all-in on AI and telling everybody.

This week, Ad Age featured a press release — oops, I mean an article (subscription required) — with the details of how Brandtech is leaning into the takeaway from OpenAI’s Sam Altman, who says 95% of marketing work today can be done by AI.

A Brandtech representative talked about how they pitch big brands with two people instead of 20. They boast about how proud they are that its lean 7,000 staffers compete with 100,000-person teams. (To be clear, showing up to a pitch with 20 people has never been a good thing, but I digress.)

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OK, that’s a differentiated approach. They’re all in. Ad Age certainly seemed to like it enough to promote it. Oops, I mean report about it.

False claims of using AI and not using AI

Offshoots of the all-in and never-will approaches also exist.

The term “AI washing” is de rigueur to describe companies claiming to use AI for something that really isn’t AI.  The US Securities and Exchange Commission just fined two companies for using misleading statements about their use of AI in their business model. I know one startup technology organization faced so much pressure from their board and investors to “do something with AI” that they put a simple chatbot on their website — a glorified search engine — while they figured out what they wanted to do.

Lastly and perhaps most interestingly, companies have and will use AI for much of what they create but remain quiet about it or desire to keep it a secret. A recent notable example is the deepfake ad of a woman in a car professing the need for people to use a particular body wipe to get rid of body odor. It was purported to be real, but sharp-eyed viewers suspected the fake and called out the company, which then admitted it. Or was that the brand’s intent all along — the AI-use outrage would bring more attention?

To yell or not to yell about your brand’s AI decision

Should a brand yell from a mountaintop that they use AI to differentiate themselves a la Brandtech? Or should a brand yell they’re never going to use AI to differentiate themselves a la Dove? Or should a brand use it and not yell anything? (I think it’s clear that a brand should not use AI and lie and say it is. That’s the worst of all choices.)

I lean far into not-yelling-from-mountaintop camp.

When I see a CEO proudly exclaim that they laid off 90% of their support workforce because of AI, I’m not surprised a little later when the value of their service is reduced, and the business is failing.

I’m not surprised when I hear “AI made us do it” to rationalize the latest big tech company latest rounds of layoffs. Or when a big consulting firm announces it’s going all-in on using AI to replace its creative and strategic resources.

I see all those things as desperate attempts for short-term attention or a distraction from the real challenge. They may get responses like, “Of course, you had to lay all those people off; AI is so disruptive,” or “Amazing. You’re so out in front of the rest of the pack by leveraging AI to create efficiency, let me cover your story.” Perhaps they get this response, “Your company deserves a bump in stock price because you’re already using this fancy new technology.”

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But what happens if the AI doesn’t deliver as promoted? What happens the next time you need to lay off people? What happens the next time you need to prove your technologically forward-leaning?

Yelling out that you’re all in on a disruptive innovation, especially one the public doesn’t yet trust a lot is (at best) a business sugar high. That short-term burst of attention may or may not foul your long-term brand value.

Interestingly, the same scenarios can manifest when your brand proclaims loudly it is all out of AI, as Dove did. The sugar high may not last and now Dove has itself into a messaging box. One slip could cause distrust among its customers. And what if AI gets good at demonstrating diversity in beauty?

I tried Dove’s instructions and prompted ChatGPT for a picture of “the most beautiful woman in the world according to the Dove Real Beauty ad.”

It gave me this. Then this. And this. And finally, this.

She’s absolutely beautiful, but she doesn’t capture the many facets of diversity Dove has demonstrated in its Real Beauty campaigns. To be clear, Dove doesn’t have any control over generating the image. Maybe the prompt worked well for Dove, but it didn’t for me. Neither Dove nor you can know how the AI tool will behave.

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To use AI or not to use AI?

When brands grab a microphone to answer that question, they work from an existential fear about the disruption’s meaning. They do not exhibit the confidence in their actions to deal with it.

Let’s return to Hamlet’s soliloquy:

Thus conscience doth make cowards of us all;

And thus the native hue of resolution

Is sicklied o’er with the pale cast of thought,

And enterprises of great pith and moment

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With this regard their currents turn awry

And lose the name of action.

In other words, Hamlet says everybody is afraid to take real action because they fear the unknown outcome. You could act to mitigate or solve some challenges, but you don’t because you don’t trust yourself.

If I’m a brand marketer for any business (and I am), I’m going to take action on AI for my business. But until I see how I’m going to generate value with AI, I’m going to be circumspect about yelling or proselytizing how my business’ future is better.

Want more content marketing tips, insights, and examples? Subscribe to workday or weekly emails from CMI.

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Cover image by Joseph Kalinowski/Content Marketing Institute

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How to Use AI For a More Effective Social Media Strategy, According to Ross Simmonds

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How to Use AI For a More Effective Social Media Strategy, According to Ross Simmonds

Welcome to Creator Columns, where we bring expert HubSpot Creator voices to the Blogs that inspire and help you grow better.

It’s the age of AI, and our job as marketers is to keep up.

My team at Foundation Marketing recently conducted an AI Marketing study surveying hundreds of marketers, and more than 84% of all leaders, managers, SEO experts, and specialists confirmed that they used AI in the workplace.

AI in the workplace data graphic, Foundation Labs

If you can overlook the fear-inducing headlines, this technology is making social media marketers more efficient and effective than ever. Translation: AI is good news for social media marketers.

Download Now: The 2024 State of Social Media Trends [Free Report]

In fact, I predict that the marketers not using AI in their workplace will be using it before the end of this year, and that number will move closer and closer to 100%.

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Social media and AI are two of the most revolutionizing technologies of the last few decades. Social media has changed the way we live, and AI is changing the way we work.

So, I’m going to condense and share the data, research, tools, and strategies that the Foundation Marketing Team and I have been working on over the last year to help you better wield the collective power of AI and social media.

Let’s jump into it.

What’s the role of AI in social marketing strategy?

In a recent episode of my podcast, Create Like The Greats, we dove into some fascinating findings about the impact of AI on marketers and social media professionals. Take a listen here:

Let’s dive a bit deeper into the benefits of this technology:

Benefits of AI in Social Media Strategy

AI is to social media what a conductor is to an orchestra — it brings everything together with precision and purpose. The applications of AI in a social media strategy are vast, but the virtuosos are few who can wield its potential to its fullest.

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AI to Conduct Customer Research

Imagine you’re a modern-day Indiana Jones, not dodging boulders or battling snakes, but rather navigating the vast, wild terrain of consumer preferences, trends, and feedback.

This is where AI thrives.

Using social media data, from posts on X to comments and shares, AI can take this information and turn it into insights surrounding your business and industry. Let’s say for example you’re a business that has 2,000 customer reviews on Google, Yelp, or a software review site like Capterra.

Leveraging AI you can now have all 2,000 of these customer reviews analyzed and summarized into an insightful report in a matter of minutes. You simply need to download all of them into a doc and then upload them to your favorite Generative Pre-trained Transformer (GPT) to get the insights and data you need.

But that’s not all.

You can become a Prompt Engineer and write ChatGPT asking it to help you better understand your audience. For example, if you’re trying to come up with a persona for people who enjoy marathons but also love kombucha you could write a prompt like this to ChatGPT:

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ChatGPT prompt example

The response that ChatGPT provided back is quite good:

GPT response example

Below this it went even deeper by including a lot of valuable customer research data:

  • Demographics
  • Psychographics
  • Consumer behaviors
  • Needs and preferences

And best of all…

It also included marketing recommendations.

The power of AI is unbelievable.

Social Media Content Using AI

AI’s helping hand can be unburdening for the creative spirit.

Instead of marketers having to come up with new copy every single month for posts, AI Social Caption generators are making it easier than ever to craft catchy status updates in the matter of seconds.

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Tools like HubSpot make it as easy as clicking a button and telling the AI tool what you’re looking to create a post about:

AI social media caption generator step 1

The best part of these AI tools is that they’re not limited to one channel.

Your AI social media content assistant can help you with LinkedIn content, X content, Facebook content, and even the captions that support your post on Instagram.

It can also help you navigate hashtags:

AI social media hashtags generator example, HubSpot

With AI social media tools that generate content ideas or even write posts, it’s not about robots replacing humans. It’s about making sure that the human creators on your team are focused on what really matters — adding that irreplaceable human touch.

Enhanced Personalization

You know that feeling when a brand gets you, like, really gets you?

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AI makes that possible through targeted content that’s tailored with a level of personalization you’d think was fortune-telling if the data didn’t paint a starker, more rational picture.

What do I mean?

Brands can engage more quickly with AI than ever before. In the early 2000s, a lot of brands spent millions of dollars to create social media listening rooms where they would hire social media managers to find and engage with any conversation happening online.

Thanks to AI, brands now have the ability to do this at scale with much fewer people all while still delivering quality engagement with the recipient.

Analytics and Insights

Tapping into AI to dissect the data gives you a CSI-like precision to figure out what works, what doesn’t, and what makes your audience tick. It’s the difference between guessing and knowing.

The best part about AI is that it can give you almost any expert at your fingertips.

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If you run a report surrounding the results of your social media content strategy directly from a site like LinkedIn, AI can review the top posts you’ve shared and give you clear feedback on what type of content is performing, why you should create more of it, and what days of the week your content is performing best.

This type of insight that would typically take hours to understand.

Now …

Thanks to the power of AI you can upload a spreadsheet filled with rows and columns of data just to be met with a handful of valuable insights a few minutes later.

Improved Customer Service

Want 24/7 support for your customers?

It’s now possible without human touch.

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Chatbots powered by AI are taking the lead on direct messaging experiences for brands on Facebook and other Meta properties to offer round-the-clock assistance.

The fact that AI can be trained on past customer queries and data to inform future queries and problems is a powerful development for social media managers.

Advertising on Social Media with AI

The majority of ad networks have used some variation of AI to manage their bidding system for years. Now, thanks to AI and its ability to be incorporated in more tools, brands are now able to use AI to create better and more interesting ad campaigns than ever before.

Brands can use AI to create images using tools like Midjourney and DALL-E in seconds.

Brands can use AI to create better copy for their social media ads.

Brands can use AI tools to support their bidding strategies.

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The power of AI and social media is continuing to evolve daily and it’s not exclusively found in the organic side of the coin. Paid media on social media is being shaken up due to AI just the same.

How to Implement AI into Your Social Media Strategy

Ready to hit “Go” on your AI-powered social media revolution?

Don’t just start the engine and hope for the best. Remember the importance of building a strategy first. In this video, you can learn some of the most important factors ranging from (but not limited to) SMART goals and leveraging influencers in your day-to-day work:

The following seven steps are crucial to building a social media strategy:

  1. Identify Your AI and Social Media Goals
  2. Validate Your AI-Related Assumptions
  3. Conduct Persona and Audience Research
  4. Select the Right Social Channels
  5. Identify Key Metrics and KPIs
  6. Choose the Right AI Tools
  7. Evaluate and Refine Your Social Media and AI Strategy

Keep reading, roll up your sleeves, and follow this roadmap:

1. Identify Your AI and Social Media Goals

If you’re just dipping your toes into the AI sea, start by defining clear objectives.

Is it to boost engagement? Streamline your content creation? Or simply understand your audience better? It’s important that you spend time understanding what you want to achieve.

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For example, say you’re a content marketing agency like Foundation and you’re trying to increase your presence on LinkedIn. The specificity of this goal will help you understand the initiatives you want to achieve and determine which AI tools could help you make that happen.

Are there AI tools that will help you create content more efficiently? Are there AI tools that will help you optimize LinkedIn Ads? Are there AI tools that can help with content repurposing? All of these things are possible and having a goal clearly identified will help maximize the impact. Learn more in this Foundation Marketing piece on incorporating AI into your content workflow.

Once you have identified your goals, it’s time to get your team on board and assess what tools are available in the market.

Recommended Resources:

2. Validate Your AI-Related Assumptions

Assumptions are dangerous — especially when it comes to implementing new tech.

Don’t assume AI is going to fix all your problems.

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Instead, start with small experiments and track their progress carefully.

3. Conduct Persona and Audience Research

Social media isn’t something that you can just jump into.

You need to understand your audience and ideal customers. AI can help with this, but you’ll need to be familiar with best practices. If you need a primer, this will help:

Once you understand the basics, consider ways in which AI can augment your approach.

4. Select the Right Social Channels

Not every social media channel is the same.

It’s important that you understand what channel is right for you and embrace it.

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The way you use AI for X is going to be different from the way you use AI for LinkedIn. On X, you might use AI to help you develop a long-form thread that is filled with facts and figures. On LinkedIn however, you might use AI to repurpose a blog post and turn it into a carousel PDF. The content that works on X and that AI can facilitate creating is different from the content that you can create and use on LinkedIn.

The audiences are different.

The content formats are different.

So operate and create a plan accordingly.

Recommended Tools and Resources:

5. Identify Key Metrics and KPIs

What metrics are you trying to influence the most?

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Spend time understanding the social media metrics that matter to your business and make sure that they’re prioritized as you think about the ways in which you use AI.

These are a few that matter most:

  • Reach: Post reach signifies the count of unique users who viewed your post. How much of your content truly makes its way to users’ feeds?
  • Clicks: This refers to the number of clicks on your content or account. Monitoring clicks per campaign is crucial for grasping what sparks curiosity or motivates people to make a purchase.
  • Engagement: The total social interactions divided by the number of impressions. This metric reveals how effectively your audience perceives you and their readiness to engage.

Of course, it’s going to depend greatly on your business.

But with this information, you can ensure that your AI social media strategy is rooted in goals.

6. Choose the Right AI Tools

The AI landscape is filled with trash and treasure.

Pick AI tools that are most likely to align with your needs and your level of tech-savviness.

For example, if you’re a blogger creating content about pizza recipes, you can use HubSpot’s AI social caption generator to write the message on your behalf:

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AI social media generator example

The benefit of an AI tool like HubSpot and the caption generator is that what at one point took 30-40 minutes to come up with — you can now have it at your fingertips in seconds. The HubSpot AI caption generator is trained on tons of data around social media content and makes it easy for you to get inspiration or final drafts on what can be used to create great content.

Consider your budget, the learning curve, and what kind of support the tool offers.

7. Evaluate and Refine Your Social Media and AI Strategy

AI isn’t a magic wand; it’s a set of complex tools and technology.

You need to be willing to pivot as things come to fruition.

If you notice that a certain activity is falling flat, consider how AI can support that process.

Did you notice that your engagement isn’t where you want it to be? Consider using an AI tool to assist with crafting more engaging social media posts.

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Make AI Work for You — Now and in the Future

AI has the power to revolutionize your social media strategy in ways you may have never thought possible. With its ability to conduct customer research, create personalized content, and so much more, thinking about the future of social media is fascinating.

We’re going through one of the most interesting times in history.

Stay equipped to ride the way of AI and ensure that you’re embracing the best practices outlined in this piece to get the most out of the technology.

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MARKETING

Advertising in local markets: A playbook for success

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Advertising in local markets: A playbook for success

Many brands, such as those in the home services industry or a local grocery chain, market to specific locations, cities or regions. There are also national brands that want to expand in specific local markets. 

Regardless of the company or purpose, advertising on a local scale has different tactics than on a national scale. Brands need to connect their messaging directly with the specific communities they serve and media to their target demo. Here’s a playbook to help your company succeed when marketing on a local scale.  

1. Understand local vs. national campaigns

Local advertising differs from national campaigns in several ways: 

  • Audience specificity: By zooming in on precise geographic areas, brands can tailor messaging to align with local communities’ customs, preferences and nuances. This precision targeting ensures that your message resonates with the right target audience.
  • Budget friendliness: Local advertising is often more accessible for small businesses. Local campaign costs are lower, enabling brands to invest strategically within targeted locales. This budget-friendly nature does not diminish the need for strategic planning; instead, it emphasizes allocating resources wisely to maximize returns. As a result, testing budgets can be allocated across multiple markets to maximize learnings for further market expansion.
  • Channel selection: Selecting the correct channels is vital for effective local advertising. Local newspapers, radio stations, digital platforms and community events each offer advantages. The key lies in understanding where your target audience spends time and focusing efforts to ensure optimal engagement.
  • Flexibility and agility: Local campaigns can be adjusted more swiftly in response to market feedback or changes, allowing brands to stay relevant and responsive. 

Maintaining brand consistency across local touchpoints reinforces brand identity and builds a strong, recognizable brand across markets. 

2. Leverage customized audience segmentation 

Customized audience segmentation is the process of dividing a market into distinct groups based on specific demographic criteria. This marketing segmentation supports the development of targeted messaging and media plans for local markets. 

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For example, a coffee chain might cater to two distinct segments: young professionals and retirees. After identifying these segments, the chain can craft messages, offers and media strategies relating to each group’s preferences and lifestyle.

To reach young professionals in downtown areas, the chain might focus on convenience, quality coffee and a vibrant atmosphere that is conducive to work and socializing. Targeted advertising on Facebook, Instagram or Connected TV, along with digital signage near office complexes, could capture the attention of this demographic, emphasizing quick service and premium blends.

Conversely, for retirees in residential areas, the chain could highlight a cozy ambiance, friendly service and promotions such as senior discounts. Advertisements in local print publications, community newsletters, radio stations and events like senior coffee mornings would foster a sense of community and belonging.

Dig deeper: Niche advertising: 7 actionable tactics for targeted marketing

3. Adapt to local market dynamics

Various factors influence local market dynamics. Brands that navigate changes effectively maintain a strong audience connection and stay ahead in the market. Here’s how consumer sentiment and behavior may evolve within a local market and the corresponding adjustments brands can make. 

  • Cultural shifts, such as changes in demographics or societal norms, can alter consumer preferences within a local community. For example, a neighborhood experiencing gentrification may see demand rise for specific products or services.
    • Respond by updating your messaging to reflect the evolving cultural landscape, ensuring it resonates with the new demographic profile.
  • Economic conditions are crucial. For example, during downturns, consumers often prioritize value and practicality.
    • Highlight affordable options or emphasize the practical benefits of your offerings to ensure messaging aligns with consumers’ financial priorities. The impact is unique to each market and the marketing message must also be dynamic.
  • Seasonal trends impact consumer behavior.
    • Align your promotions and creative content with changing seasons or local events to make your offerings timely and relevant.
  • New competitors. The competitive landscape demands vigilance because new entrants or innovative competitor campaigns can shift consumer preferences.
    • Differentiate by focusing on your unique selling propositions, such as quality, customer service or community involvement, to retain consumer interest and loyalty.

4. Apply data and predictive analytics 

Data and predictive analytics are indispensable tools for successfully reaching local target markets. These technologies provide consumer behavior insights, enabling you to anticipate market trends and adjust strategies proactively. 

  • Price optimization: By analyzing consumer demand, competitor pricing and market conditions, data analytics enables you to set prices that attract customers while ensuring profitability.
  • Competitor analysis: Through analysis, brands can understand their positioning within the local market landscape and identify opportunities and threats. Predictive analytics offer foresight into competitors’ potential moves, allowing you to strategize effectively to maintain a competitive edge.
  • Consumer behavior: Forecasting consumer behavior allows your brand to tailor offerings and marketing messages to meet evolving consumer needs and enhance engagement.
  • Marketing effectiveness: Analytics track the success of advertising campaigns, providing insights into which strategies drive conversions and sales. This feedback loop enables continuous optimization of marketing efforts for maximum impact.
  • Inventory management: In supply chain management, data analytics predict demand fluctuations, ensuring inventory levels align with market needs. This efficiency prevents stockouts or excess inventory, optimizing operational costs and meeting consumer expectations.

Dig deeper: Why you should add predictive modeling to your marketing mix

5. Counter external market influences

Consider a clothing retailer preparing for a spring collection launch. By analyzing historical weather data and using predictive analytics, the brand forecasts an unseasonably cool start to spring. Anticipating this, the retailer adjusts its campaign to highlight transitional pieces suitable for cooler weather, ensuring relevance despite an unexpected chill.

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Simultaneously, predictive models signal an upcoming spike in local media advertising rates due to increased market demand. Retailers respond by reallocating a portion of advertising budgets to digital channels, which offer more flexibility and lower costs than traditional media. This shift enables brands to maintain visibility and engagement without exceeding budget, mitigating the impact of external forces on advertising.

6. Build consumer confidence with messaging

Localized messaging and tailored customer service enhance consumer confidence by demonstrating your brand’s understanding of the community. For instance, a grocery store that curates cooking classes featuring local cuisine or sponsors community events shows commitment to local culture and consumer interests. 

Similarly, a bookstore highlighting local authors or topics relevant to the community resonates with local customers. Additionally, providing service that addresses local needs — such as bilingual service and local event support — reinforces the brand’s values and response to the community. 

Through these localized approaches, brands can build trust and loyalty, bridging the gap between corporate presence and local relevance.

7. Dominate with local advertising 

To dominate local markets, brands must:

  • Harness hyper-targeted segmentation and geo-targeted advertising to reach and engage precise audiences.
  • Create localized content that reflects community values, engage in community events, optimize campaigns for mobile and track results.
  • Fine-tune strategies, outperform competitors and foster lasting relationships with customers.

These strategies will enable your message to resonate with local consumers, differentiate you in competitive markets and ensure you become a major player in your specific area. 



Dig deeper: The 5 critical elements for local marketing success

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Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.

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