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Why Paid Social Is Still the Small Business Growth Catalyst You Can’t Ignore

Dan Wildby Dan Wild

Friday, December 13, 2024

For all the talk of paid social losing its edge, there’s no denying its transformative power for small businesses. Whether it’s a legacy company looking to modernise or a scrappy start-up aiming for its first big break, paid social advertising remains one of the most accessible and impactful tools in the marketing arsenal.

Take, for instance, one of our recent clients—a family-run business with over 20 years of history and a proven product line. Despite their success on platforms like eBay and Amazon, their direct online presence was almost non-existent. They were ready for growth but had little experience building a brand outside of third-party marketplaces. That’s where paid social stepped in—and it changed everything.

The Challenge: Moving Beyond Marketplace Dependence

For years, this business thrived in niche markets, relying heavily on eBay and Amazon for sales. While these platforms offered visibility, they also came with significant limitations:

  • Lack of Brand Control: These platforms made it difficult to tell their story or foster direct relationships with customers.
  • Heavy Fees: Marketplace commissions ate into their profit margins, capping their growth potential.
  • Minimal Customer Retention: Transactions often felt one-off, with few mechanisms to nurture repeat business.

The goal was clear: establish an independent online presence, reach a broader audience, and convert one-time buyers into loyal, repeat customers.

The Solution: Amplify, Target, Nurture

We crafted a paid social strategy that would amplify their reach, connect them with the right audiences, and maximise every opportunity to turn new visitors into repeat customers. Here’s how we did it:

1. Audience Discovery and Targeting

  • Using tools like Meta Ads Manager, we analysed their ideal customer profile based on marketplace insights and competitor data.
  • Through interest-based and lookalike targeting, we reached highly relevant users who were likely to engage with their product.

2. Creative That Converts

  • Compelling ad creatives highlighted the product’s unique features, supported by customer testimonials for credibility.
  • We tailored ad formats to the platform, running engaging carousel ads and video campaigns that performed particularly well on Facebook and Instagram.

3. Retargeting Campaigns

  • Retargeting was essential for nurturing potential customers. By serving personalised ads to users who engaged with their content but didn’t convert, we kept the brand top-of-mind.

4. Email Marketing Integration

  • After capturing customer information via lead magnets and first-time buyer discounts, we implemented email marketing workflows to drive retention.
  • These included automated follow-ups, product recommendations, and exclusive offers to reward loyalty.

The Results: A New Growth Chapter Begins

Over a short period, the results were transformative:

  • Ad Spend: £10,000
  • Return on Ad Spend (ROAS): Over 4x, generating significant revenue from new customers.
  • Returning Customer Rate: Just ~5%, underscoring the vast opportunity to capitalise on new customers through ongoing retention efforts.

What makes these results even more impressive is the cost-effectiveness of paid social. Traditional advertising methods like TV or print could have easily required tens of thousands of pounds without guaranteeing this level of reach or targeting precision. Social media gave this small business the opportunity to connect with its audience in a way that simply wasn’t possible before.

The Untapped Potential of Retention

While the growth was undeniable, the low returning customer rate reveals an even greater opportunity: systematically turning new customers into loyal, repeat buyers. By continuing to invest in retention strategies—such as enhanced email workflows, loyalty programmes, and post-purchase engagement campaigns—the business can drive lifetime value and sustainable growth.

Why Paid Social Still Works for Small Businesses

Social media advertising continues to be a game-changer, especially for small businesses. Here’s why:

  1. Affordable Entry Point: Unlike TV or print ads, you don’t need a massive budget to make an impact. Even with a modest ad spend, businesses can test and refine their approach.
  2. Unparalleled Targeting: Platforms like Facebook and Instagram allow brands to reach niche audiences with pinpoint accuracy.
  3. Scalability: Once campaigns prove successful, they can be scaled quickly to amplify results.
  4. Retention Opportunities: Tools like retargeting and email marketing let you maximise the lifetime value of each customer.

The Bigger Picture: Building Sustainable Growth

The client’s success story illustrates the potential of a well-executed paid social strategy. But it’s not just about short-term wins—it’s about building a foundation for sustainable growth. By investing in paid social, small businesses can:

  • Build direct relationships with their customers.
  • Reduce dependency on third-party platforms.
  • Foster long-term brand loyalty.

So say what you like about paid social—but for small businesses aiming for rapid growth, it’s an opportunity that’s simply too powerful to ignore.

Ready to Revolutionise Your Business?

If your small business is ready to grow but unsure how to take the next step, we’re here to help. At Alphageek, we specialise in crafting paid social strategies that drive measurable results. Let’s amplify your reach, target the right people, and create the growth you’ve been dreaming of.

Contact us today to get started.