The social media advertising process is defined by rapid change and increasing complexity. The best practices that used to work two years ago might not deliver the same results in 2025.
Brands must navigate evolving algorithms, data privacy regulations, shifting consumer behavior and AI’s growing influence in ad targeting.
To improve return on ad spend (ROAS), marketers need a results-driven strategy tailored for paid social media ads. This guide will help refine social media advertising efforts and achieve better results.
Below, we discuss:
• Understanding Social Media Ads Cost
• Get More From Your Ad Budget: 5 Smart Spending Strategies for 2025
Let’s dive in.
Understanding Social Media Ads Cost
Social media ad costs can vary significantly depending on the platform, target audience, ad format and bidding strategy.
For example, Facebook may offer a lower cost-per-click compared to LinkedIn, which targets a more niche, professional audience.
Monitoring and optimizing your social media ad cost helps ensure a higher return on ad spend (ROAS). Advertisers should regularly analyze campaign performance to adjust bids, targeting parameters and creative assets to reduce waste and maximize impact.
How To Get More From Your Ad Budget: 5 Smart Spending Strategies for 2025
Paid social media advertising is constantly evolving. Algorithms change, consumer behaviors shift and new technologies reshape how brands reach their audience.
To maximize returns, you must shift your focus to practices that adapt to these changes.
“Social media ads have evolved quite a bit over the past few years, from the targeting we’re able to implement to the conversion tracking we can now report on. This gives [the business] a better idea of their customer’s purchase journey,” said Wesley Wessels, Paid Media Manager at Thrive Internet Marketing Agency.
With more advanced data and tools available, brands that embrace this evolution are better positioned to drive results in an increasingly competitive space.
Optimize your ad spend in 2025 by following these strategies:
1. Prioritize the Platforms That Deliver the Best ROI
Choosing the right social media platforms for your ad spend is one of the most critical decisions you’ll make in 2025. Not every platform will generate the same return, and spreading your budget too thin across multiple channels can dilute your results.
The key to successful advertising on social media is focusing on the platforms where your target audience is most active and where your ads on social media yield the highest engagement.
According to Statista, 28% of marketers ranked Facebook as the platform delivering the highest ROI, followed by Instagram (22%) and YouTube (12%). However, the best platform for your business depends on your industry, audience and advertising goals.
Here are the best practices to help you determine which platforms to run social media marketing ads:
➤ Analyze Audience Demographics
Ensure the platform’s user base matches your target audience. If you’re in the business-to-business (B2B) space, LinkedIn may be a better fit than TikTok. If you sell visual products, Pinterest and Instagram might increase engagement.
➤ Evaluate Content Compatibility
Different platforms excel at different content formats. Instagram and TikTok favor short-form videos, LinkedIn performs well with professional thought leadership content and Facebook still dominates for community-driven interactions.
➤ Compare Advertising Costs
Ad costs vary significantly between platforms. Facebook and Instagram may have higher cost per mile (CPMs), while TikTok and Pinterest offer lower costs but require different creative strategies. Understanding the cost-effectiveness of each helps allocate the budget efficiently.
➤ Stay Updated on Platform Trends
Social media sites frequently update their algorithms, introduce new ad placements and refine their targeting capabilities. Keeping up with these changes ensures you adapt your strategy to maximize performance.
2. Refine Your Targeting With Artificial Intelligence (AI)
Artificial intelligence (AI) and first-party data have become essential tools for marketers who aim to deliver personalized experiences while respecting user privacy.
In 2023, AI-driven paid social media advertising expenditures reached $130 billion globally, reflecting the significant investment in AI technologies for advertising on social media. As businesses continue to seek higher ROI from paid social media ads, leveraging AI is becoming a key competitive advantage.
Here’s how you can use AI to boost your marketing efforts:
➤ Leverage AI for Audience Segmentation
Utilize AI algorithms to analyze customer data and identify distinct audience segments based on behaviors, preferences and demographics. This enables the creation of tailored marketing strategies that resonate with each group.
➤ Enhance Personalization With Predictive Analytics
Implement AI-powered predictive analytics to anticipate customer needs and behaviors. AI can forecast future actions through historical data, allowing for the delivery of personalized content that aligns with individual customer journeys.
➤ Ensure Data Privacy and Compliance
With increasing privacy regulations, businesses must handle first-party data responsibly. Obtain explicit consent from users, be transparent about data usage and comply with regulations such as GDPR and CCPA to build trust and avoid legal complications.
➤ Integrate Data Across Channels
Consolidate first-party data from various touchpoints into a unified system. This holistic view of the customer enhances AI’s ability to deliver consistent and personalized experiences across all channels.
“AI has been a big part of social media ads for years, with the algorithm’s machine learning helping our ads perform optimally. We are now seeing AI influence targeting, ad copy and creatives, and I expect it to play an even bigger role in the future,” Wessels said.
Still, human insight remains essential.
“The key is to find a balance. We shouldn’t just let AI do our job, but use it as a tool to get the best results for our clients.”
3. Create Platform-Specific Ad Content
Users on different platforms expect varied content experiences. Ignoring preferences can lead to lower engagement rates and wasted ad spend. To get the most out of your ads on social media, it’s essential to tailor messaging, visuals and formats to fit each platform’s unique environment.
The following are best practices for creating platform-specific content to optimize advertising performance:
➤ Understand Platform Demographics
Each social media platform attracts distinct user demographics. Aligning your content with the platform’s primary audience ensures your social media marketing ads resonate and drive meaningful engagement.
➤ Adapt to Native Content Formats
Platforms support various content formats, and utilizing these effectively can enhance user engagement. In the context of advertising on social media, using native formats helps your content blend seamlessly into users’ feeds, making it more likely to capture attention.
• Instagram and TikTok: Emphasize short, engaging videos and visually appealing images.
• Facebook: Combine text, images and videos to create versatile posts.
• LinkedIn: Focus on professional, informative content such as articles and industry insights.
When you align your content with the platform’s native formats, your ads on social media become more relatable and increase the likelihood of user interaction.
➤ Leverage Platform-Specific Features
Utilizing the unique features of each platform can significantly boost content visibility and engagement. These tools are especially powerful when integrated into a paid social media advertising strategy.
• Instagram Stories and Reels: Share time-sensitive updates or behind-the-scenes content to foster a sense of urgency and exclusivity.
• Facebook Groups: Engage with niche communities to build brand loyalty and gather feedback.
• LinkedIn Pulse: Publish long-form articles to establish thought leadership and engage professionals in your industry.
Incorporating these features into your strategy can enhance user engagement and brand presence.
➤ Maintain Consistent Brand Voice
While adapting content for each platform, ensure your brand voice remains consistent. This consistency reinforces brand identity and fosters trust across different channels.
4. Implement Retargeting to Capture Missed Opportunities
Retargeting is a powerful strategy that allows you to reconnect with potential customers who have shown interest in your brand but have yet to take the desired action. It’s especially effective when integrated into social media marketing ads, where personalized messaging can guide users further down the funnel.
Today’s average consumer requires eight to 12 touchpoints before committing to a major purchase, proving how essential it has become in digital marketing strategies. Ignoring retargeting means missing out on valuable conversion opportunities, particularly within paid social media ads where competition for attention is high.
Keep in mind the following best practices:
➤ Set Frequency Caps
While it’s important to remind potential customers of your offerings, overexposure can lead to ad fatigue and annoyance. Implementing frequency caps ensures that individuals aren’t overwhelmed by your ads, maintaining a positive brand perception.
➤ Utilize Dynamic Ads
Dynamic retargeting ads that showcase products or services a user has previously viewed can lead to higher engagement. This personalized approach keeps relevant items top-of-mind and encourages return visits to complete purchases.
➤ Incorporate Compelling Calls-to-Action (CTAs)
Clear and enticing CTAs can prompt users to take the next step. Whether it’s “Complete Your Purchase” or “Explore Similar Products,” a clear, intent-focused CTA directs potential customers toward conversion.
These best practices allow businesses to effectively recapture potential customers’ interest, reduce cart abandonment rates and ultimately increase conversions.
5. Use A/B Testing to Improve Performance
A/B testing, or split testing, is a method in which two versions of a marketing asset are compared to determine which performs better. This approach allows marketers to make informed decisions to enhance user engagement and conversion rates.
The significance of A/B testing in marketing is evident in its widespread adoption. A report revealed that 77% of marketers utilize A/B testing on their websites, with 60% applying it to landing pages, 59% to email campaigns and 58% to paid search efforts.
Here’s how you can improve the performance of your social ads through A/B testing:
➤ Define Clear Objectives
Before initiating an A/B test, establish specific goals. Determine which metrics, such as click-through rates, conversion rates or bounce rates, you aim to improve. Clear objectives provide direction and a basis for evaluating success.
➤ Test One Element at a Time
To accurately identify which change influences performance, focus on a single variable per test. Isolating one element ensures that any observed effects can be attributed to that modification.
➤ Ensure Statistical Significance
Run tests long enough to gather sufficient data, ensuring statistically significant results. Premature conclusions can lead to misguided decisions. Utilize statistical tools or calculators to determine the required sample size and duration for reliable outcomes.
Get More Conversions Without Increasing Your Budget
Higher ad spend doesn’t always mean better results. Smarter spending does.
Thrive Internet Marketing Agency helps businesses like yours get the most from their advertising budget by focusing on what truly works: advanced targeting, strategic content and continuous optimization.
With over 15 years of experience in digital marketing, Thrive has helped businesses of all sizes scale their social media ad performance. Our data-driven strategy helps deliver your campaigns to the right audience at the optimal moment.
Whether you’re investing in broad social media advertising or focusing on platform-specific efforts like Facebook, Instagram, Twitter (now X) or LinkedIn advertising, our tailored approach drives meaningful results.
From full-scale social media marketing strategies to campaign-level execution, we partner with you to maximize visibility, engagement and ROI across every central platform.
Let’s make your ad spend count. Schedule a free consultation with us today!
Social Media Advertising FAQs
WHAT IS A GOOD ROI FOR SOCIAL MEDIA ADVERTISING IN 2025?
A good ROI varies by industry, but many businesses aim for a 3:1 return or higher. What matters most is that your return consistently exceeds your ad spend and supports long-term business goals.
HOW MUCH SHOULD I BUDGET FOR SOCIAL MEDIA ADS IN 2025?
Budgets depend on your business size, audience and goals. However, many brands allocate 10% to 20% of their digital marketing budget to social ads, focusing on platforms that deliver the highest return.
WHICH SOCIAL MEDIA PLATFORM OFFERS THE BEST ROI?
It depends on your industry and audience. Facebook and Instagram often provide high ROI for B2C, while LinkedIn performs better for B2B. Regular testing is essential to identify what works best for your brand.
IS AI USEFUL FOR SOCIAL MEDIA AD TARGETING?
Yes. AI improves targeting by analyzing user behavior, interests and engagement patterns. This allows for highly personalized ads that improve conversion rates without increasing costs.
HOW CAN I TELL IF MY SOCIAL MEDIA ADS ARE UNDERPERFORMING?
Watch for low click-through rates (CTR), high cost-per-click (CPC) or poor conversion rates. If engagement is low despite a healthy budget, it’s time to revise your targeting, creative, or platform.
WHAT KIND OF CONTENT WORKS BEST FOR PAID SOCIAL MEDIA ADS?
Short-form video, strong visuals and clear calls-to-action typically perform well. Content should be tailored to each platform’s format and audience expectations.
DO I NEED TO ADVERTISE ON EVERY SOCIAL PLATFORM?
No. Focus on platforms where your audience is most active and where ad performance meets your ROI benchmarks. Spreading your budget too thin often reduces impact.
IS RETARGETING STILL EFFECTIVE IN 2025?
Yes. Retargeting remains a powerful way to re-engage users who showed initial interest. Dynamic retargeting and frequency caps help maintain relevance without overwhelming your audience.
HOW OFTEN SHOULD I UPDATE MY AD CREATIVE?
Update creatives regularly, ideally every two to four weeks, to avoid ad fatigue. Rotating formats, visuals and messaging helps sustain performance.
DO SMALL BUSINESSES BENEFIT FROM PAID SOCIAL ADS?
Absolutely. With the proper targeting and creative, small businesses can achieve strong ROI even with limited budgets. The key is to focus spend where it matters most and optimize continuously.
