Are LinkedIn Ads Right for You?

Are LinkedIn ads worth it? The answer is short and simple. But there are a few things to consider, so keep reading past the next sentence.

That simple answer? Yes, if you're a B2B.

LinkedIn is the world's largest professional database with more than 450 million people. That means that if you’re looking to generate B2B leads, it’s a pretty sure bet that every company you’ll potentially sell to is listed there as well. As long as you know how to find your target market, you can always find the right people to connect with and sell to on LinkedIn.

LinkedIn Is the Most Expensive Platform

Out of all of the platforms out there, LinkedIn is by far the most expensive. The average cost per click is between $7 to $9. Compare that to Facebook, which may cost as little as .20 cents a click.?

Does that make it a foolish expense? Nope.

LinkedIn is more hyper-focused if you're trying to reach someone with a specific job title or who works at a particular company. Because most people use this platform for professional reasons, their profiles are more accurate than they are on other media. And LinkedIn has fewer dummy accounts. This is why LinkedIn charges a premium to be on their platform.?

Need A Healthy Budget

To get the most out of this platform, you need to spend a minimum of $5,000 monthly. All of these platforms are moving toward machine learning. For the LinkedIn algorithm to understand and maximize your performance, this is the minimum you'll have to spend.

Minimum Product Value

We would recommend advertising only if you sell products higher than $5,000. We would also recommend that you have a healthy margin within your products. Preferably at least 60%. The reason for this is that, on average, a high-quality lead will cost you about $150. We've seen other accounts that are a little lower, but this amount is about average.?

Let's say your closing rate is 20%, meaning you need to get at least five leads to close. That's going to run about $750 to acquire one customer. You can already see that a product of about $5,000 will eat into about 15% of your margin.?

Pro Tip: You can up-sell them later and create a plan to increase the lifetime value of those customers. Upselling or down selling will reduce the cost of acquiring your customer. We plan to release more content that will provide strategies to do that.

Only Run Lead Generation Campaigns

If you want to run a campaign on LinkedIn, we recommend running only lead-generation campaigns. Because this platform is so expensive compared to other channels, it's better to focus on generating leads. Unless you are a billion or trillion-dollar brand like Coca-Cola, Disney, or Nike, it's best to stick with this campaign type.

Pro-Tip: Create an email nurture campaign based on value. How will your product transform the customer's life? How will it benefit them?

Lastly, LinkedIn, out of all the platforms, will provide the best quality leads. It comes at a premium, but with a well thought-out strategy to build value and nurture your customer, it can be a great way to scale your business.?

Are you running ads and would like an audit? Or are you thinking about running a campaign but need help setting it up? Contact Superkick Branding today!

Photo by Souvik Banerjee on Unsplash