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Why Big Corporations Spend More Dollars On Social Media Rather Than TV/Radio?



Why Big Corporations Spend More Dollars On Social Media Rather Than TV/Radio?

Would you spend your money on a strategy that is quite effective and can provide you with a return triple (or more) your expenses? If you answered “yes” to that simple question, then you should have a little insight into some of the reasons why big corporations spend so much on social media advertisements rather than TV/ radio.

The 21st century came with several innovations that changed the look of things in almost all sectors. Big corporations who didn’t streamline their marketing strategy with these changes are those found lagging. Big corporations are aware that social media marketing is capable of providing a big opportunity to reach more consumers at a very low rate. Not only can this marketing strategy help these big corporations get to more customers, but it can also help them target the right ones. So why wouldn’t they spend more money on a strategy that is quite effective?

The use of TV/ Radio as an advertising medium is quite archaic; it is not really effective and lacks the “engagement” factor social media marketing boasts of.  Gathering the data from tv viewers and radio listeners are like taking a census.  The length of time it takes to collect the data based on simple categories such as demographic or age would not even be cost-effective.  When the tv is being watched, or a radio listened to, there is no telling who is a household is watching the tv or listening to the radio at any given time.  You cannot target your perfect customer because the reach is left off to whoever turns on the tv or listens to the radio.  Social media can be specifically targeted by potential customers’ interests, age, location, income, etc.  Let’s take a look at some of the reasons why these big corporations spend more money on social media rather than TV/ radio.

social media

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Their customers are on social media

One of the major reasons why big corporations spend several million dollars on social media marketing is because the majority of their customers spend a huge chunk of their time on these channels. Based on some research by Statista, about 70% of the US population has a minimum of one social media profile. And by the year, the number of individuals on social media is expected to hit about 3.1 billion. People spend more time on social media than they do facing a TV or a radio.  To be honest, I cannot remember the last time I actually listened to the radio.  Full of repetitive music and talk radio without any substance.


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So with several customers of these big corporations accessing their social media account every day, spending money on this advertising medium is for the greater good for these corporations.  According to Business Insider, in 2019, the average cost of a 30-second ad during the Superbowl was around 5.25 million dollars.  If a big corporation can spend 2 million dollars per year for the same return on investment using social media, why focus marketing efforts on tv and radio.

Why Big Corporations Spend More Dollars On Social Media Rather Than TV/Radio?

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Help raise brand recognition

Another reason why these big corporations splash more cash on social media advertising is that it helps them enhance visibility and ultimately increase their brand recognition. By posting beguiling contents that add value to their target audience, these corporations make their brand both accessible and familiar for new leads and existing customers.   For those

Why Big Corporations Spend More Dollars On Social Media Rather Than TV/Radio?

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Helps them reach their specific audience

Big corporations spend more on social media marketing because it helps them strategically target diverse audiences based on their active channels.  Instead of just putting their products or services out there for random individuals to see, these corporations leverage on social media to reach their target market and strive to drive more quality leads back to their site.

Why Big Corporations Spend More Dollars On Social Media Rather Than TV/Radio?

Photo by Lukas from Pexels

It is cost-effective

Unlike other means of advertisement, such as TV/Radio, the use of social media as a marketing tool is cost-effective and attached to it are several benefits.  These big corporations are often In search of marketing strategies that are cost-effective and can provide them with the best results, and social media tick all the boxes.


In all, the main reason why big corporations spend more on social media marketing is simply because of how effective it is in promulgating their products and services.



Read more Marketing related stories in The Weekly Trends magazine.

Barion McQueen is a serial entrepreneur and branding specialist with years of hands-on experience in helping aspiring startups pave their way to professional career success. He also serves as a real estate investor and business consultant who excels in the art of building a positive brand identity with effective social media campaigns & digital marketing strategies. Barion is an avid seeker of knowledge and a zealous author/speaker who pens down his professional insights to direct aspiring young entrepreneurs.

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