LinkedIn advertising has become an increasingly popular channel for brands looking to reach B2B audiences. With over 722 million users worldwide, LinkedIn provides access to a massive professional network. But how effective are LinkedIn ads? In this article, we’ll look at key metrics and data points to evaluate the performance of LinkedIn advertising.
What are the main goals and KPIs for LinkedIn ads?
As with any advertising campaign, the goals and key performance indicators (KPIs) for LinkedIn ads depend on the specific objectives. Here are some of the main goals brands aim to achieve with LinkedIn ads:
– Generate leads – KPIs include cost per lead, number of leads generated, lead quality
– Drive traffic – KPIs include clicks, click-through-rate (CTR), cost per click (CPC)
– Increase brand awareness – KPIs include reach, frequency, impressions
– Boost engagement – KPIs include reactions, comments, shares, follower growth
– Generate conversions – KPIs include cost per conversion, conversion rate
Understanding these goals and tracking the right KPIs is crucial for measuring the success of LinkedIn ad campaigns. The most important metrics center around driving quality leads and conversions in a cost-effective manner.
How do CTR and CPC typically perform for LinkedIn ads?
LinkedIn ads tend to perform well in terms of click-through-rate (CTR) and cost per click (CPC) compared to other paid social channels. Here are some benchmarks for LinkedIn ad CTR and CPC:
– Average CTR – 0.9% (compared to 0.35% on Facebook and 0.46% on Twitter)
– Average CPC – $7.60 (compared to $1.72 on Facebook and $2.80 on Twitter)
The higher engagement on LinkedIn drives stronger click-through rates. And LinkedIn’s highly targeted professional audience commands higher advertising costs, reflected in the higher average CPC.
Of course, actual results will vary based on factors like audience targeting, ad creative, bidding strategy and more. But in general, the highly relevant professional targeting makes LinkedIn a high-performing channel for advertiser goals based on driving traffic.
What kind of conversion rates can brands expect?
Conversion rates for LinkedIn ads vary significantly based on the product, offer, target audience and other factors. Here are some benchmarks for LinkedIn ad conversion rates:
– Lead generation – 2-5% conversion rate on landing pages is considered decent
– Whitepaper downloads – 1-3% conversion rate is often achievable
– Webinar registration – 0.5-2% conversion rate is typical
– Product demos – 0.5-1% conversion rate is a good goal
Again, these benchmarks can vary widely. The key is testing and optimization – continuously A/B testing ad creative, offers, audiences and landing pages to drive higher conversion rates over time.
How does LinkedIn ad performance compare to other channels?
Here’s a look at how LinkedIn ads may compare to some other top digital marketing channels for an average B2B brand:
| Channel | CTR | CPC | Conversion Rates |
|---|---|---|---|
| LinkedIn Ads | 0.9% | $7.60 | 2-5% |
| Facebook Ads | 0.35% | $1.72 | 1-3% |
| Google Ads | 2-3% | $2-$3 | 2-4% |
| Content Marketing | 5-10% | n/a | 5-10% |
| Email Marketing | 2-4% | n/a | 5-20% |
As you can see, LinkedIn advertising delivers strong click-through rates compared to other paid social ads due to the professional targeting. But conversion rates can be lower than more targeted channels like email marketing. Marketers see the most success using LinkedIn ads in combination with organic content marketing and email nurturing.
What targeting options drive the best performance?
The unique professional targeting options are one of the key advantages of LinkedIn advertising. Here are some of the top performing targeting strategies:
– Job title – targeting by seniority delivers good results
– Company – targeting by company size or industry vertical works well
– Groups – targeting by LinkedIn groups based on professional interests is very powerful
– Interests – targeting by business-focused interests performs better than consumer interests
– Content topics – targeting by topics of content members engage with can be very effective
– Lead gen forms – targeting by lead gen activity helps increase conversions
Layering these types of targeting together leads to the highest engagement and conversion rates. For example, using job title + company size + group membership to reach directors and VPs at mid-market healthcare companies.
What creative and copy performs best?
On LinkedIn, simple and direct creative focused on professional needs tends to work best. Here are some top tips for high-performing LinkedIn ad creative:
– Lead with clear value prop – what the ad offers professionals
– Use simple, professional image assets – portraits, business scenes
– Focus copy on pain points and professional goals
– Align creative to different stages of funnel – awareness vs conversion
– Test creative variations – image vs video, long copy vs short
– Adapt messaging by target audience – job role, seniority, industry
Often, basic single image ads with clear headlines and copy tailored to the target outperform more elaborate creative. The key is conveying professional relevance as quickly as possible.
What bid strategies lead to the optimal CPC?
LinkedIn supports several bid strategies to help optimize campaigns:
– CPM bidding – bidding based on impression price
– CPC bidding – bidding based on click price
– Conversion bidding – bidding to target cost per conversion
– Dynamic bidding – automated bid optimization by AI
Most advertisers start with manual CPC bidding to directly control costs. But conversion bidding can optimize for target conversion costs over time. And dynamic bidding leverages LinkedIn’s AI to automatically optimize bids to meet conversion goals.
Testing different bidding strategies for each campaign objective and audience can help find the optimal CPC levels and conversion costs. LinkedIn provides bidding recommendations to improve campaign performance.
What opportunities are there to improve performance over time?
Some ways advertisers can improve LinkedIn ad performance and lower CPA/CPL over time include:
– Refine audience targeting – layering multiple targeting factors
– Optimize landing pages – raise conversion rates
– A/B test ad creative – find highest performing creative
– Experiment with bidding strategies – optimize CPC and conversion cost
– Retarget engaged audiences – lower cost of subsequent conversions
– Expand highest converting audiences – scale up profitable segments
– Sequence ads across funnel – pair upper-funnel brand ads with lower-funnel conversion ads
Continuous testing and optimization is key to improving LinkedIn ad performance. Leveraging LinkedIn’s audience insights and platform capabilities can help advertisers maximize results.
Conclusion
LinkedIn advertising provides a unique opportunity to engage highly relevant professional audiences. While CPC and conversion costs are often higher than other channels, the right targeting and optimization can make LinkedIn ads highly effective for B2B brands.
Keywords like CTR, conversion rate, CPC and retargeting are useful for measuring success. Adata-driven approach involving testing of creative, copy, audiences and bid strategies is key to maximizing LinkedIn ad performance over time.
With proper execution, LinkedIn’s professional targeting and engaged user base can deliver standout results compared to other social media platforms. LinkedIn must be strongly considered by any brand looking to drive leads, traffic and engagement with decision-makers across a wide range of B2B industries and niches.
