LinkedIn is the world’s largest professional network with over 722 million users worldwide. With so many professionals on the platform, LinkedIn ads present a major opportunity for businesses looking to connect with their target B2B audiences. However, LinkedIn advertising doesn’t come cheap and it can be hard to determine if the costs outweigh the benefits. This article will explore the pros and cons of LinkedIn ads and provide tips for getting the most value from your investment.
The benefits of LinkedIn ads
Here are some of the main advantages of running LinkedIn ads:
Targeting capabilities
One of the biggest benefits of LinkedIn ads is the ability to target your ideal customers based on professional details like job title, company, industry, skills, and more. You can zero in on exactly who you want to reach instead of wasting spend on irrelevant audiences.
Engaged user base
LinkedIn users are there to network, learn, and advance their careers – not just casually scroll like on some social networks. This means they are more receptive to engaging with high-quality content and ads. Sponsored content on LinkedIn generates comments and shares at a much higher rate compared to other platforms.
Powerful audience insights
LinkedIn Audience Network allows you to upload target account lists to reach specific companies or people. You can also leverage LinkedIn’s wealth of member data for audience segmentation and insight.
Multiple ad formats
LinkedIn offers a range of ad options including Sponsored Content, Sponsored InMail, Text Ads, Dynamic Ads, and more. This flexibility allows you to choose the formats that work best for your goals and budget.
Ads appear in the feed
Native ads in the LinkedIn feed have a less disruptive placement than sidebar ads on other platforms. They have a better chance of grabbing attention as users scroll through their feeds.
The downsides of LinkedIn ads
While LinkedIn advertising has some clear advantages, there are also limitations to consider:
Narrow audience
LinkedIn’s audience is all professionals rather than the general public, so it’s not a fit for every business. If your targets aren’t well-represented on LinkedIn, ads may not be very effective.
High cost per click (CPC)
LinkedIn ad CPCs are on the pricier side, ranging from $5-$10+ on average. The small, high-value audience comes at a premium. This may not work with every budget.
Content feels “salesy”
Some people dislike seeing overt ads in their feeds. If not executed tastefully, LinkedIn ads can come off as pushy or sales-focused. This may turn certain prospects away.
Limitations for retargeting
Retargeting options on LinkedIn are currently limited compared to platforms like Facebook. To reinforce messaging, you may need to supplement LinkedIn with ads on other sites.
Reporting lacks granularity
LinkedIn’s campaign reporting capabilities are not as advanced as some platforms. There is room for improvement in tracking metrics like view-through conversions.
Tips for running effective LinkedIn ads
Here are some best practices for boosting LinkedIn ad performance:
Target by job role and company
Leverage LinkedIn’s accurate job role and company targeting to serve your ads to the right people. Avoid broader targeting based just on age, location, etc.
Personalize your creative
Ads with the viewer’s first name, company, industry, etc. integrated perform better. Dynamic creative and Direct Sponsored Content help personalize.
Test different formats
See what resonates best – Sponsored Content for awareness, Sponsored InMail to engage decision makers, Text Ads for mass reach, etc.
Use Matched Audiences to retarget
Upload emails or account lists to reconnect with prospects through retargeting campaigns.
Create content worth sharing
Thought leadership content and unique data stands out. Avoid overt product pitches in your Sponsored Content.
Measure engagement and conversions
Track KPIs beyond just clicks and impressions. Monitor metrics like shares, follows, leads, and deals won.
Review metrics frequently
Check campaign analytics regularly. Kill underperforming ads, double down on what works, and continuously optimize.
When are LinkedIn ads worth it?
Generally, LinkedIn ads deliver the most value in these situations:
Targeting B2B decision makers
With accurate job targeting, LinkedIn excels at putting your brand in front of the right decision makers and influencers.
Driving website traffic
Sponsored Content is very effective at driving qualified visitors to your site. CPCs compare favorably to other paid traffic sources.
Raising brand awareness
LinkedIn provides massive reach to build your brand among professional audiences.
Generating leads
Integrated lead gen forms allow you to collect quality leads directly from LinkedIn ads.
Recruiting talent
Reach passive job seekers already employed at your target companies with LinkedIn Recruiter.
When are LinkedIn ads not worth it?
Here are some instances where LinkedIn ads may not be the best choice:
Reaching consumers
For consumer products or services, Facebook/Instagram are likely better avenues to explore.
Driving site traffic from cold audiences
If you don’t have an existing professional audience, other platforms may be more cost effective for raw traffic goals.
Promoting discounts or deals
LinkedIn users are not there to seek out deals. Platforms like Facebook have better infrastructure for promos.
Very tight budgets
The high CPC of LinkedIn ads can be prohibitive if you have very limited resources. Other platforms offer lower minimum bids.
Need for advanced retargeting
For robust retargeting capabilities, Facebook or Google Ads may be preferable currently.
Should you use LinkedIn ads?
Here is a quick summary of when it makes sense to advertise on LinkedIn:
Consider LinkedIn ads if:
- Your targets align with LinkedIn’s professional audience
- You want to reach decision makers and leaders
- Your goals include traffic, leads, and brand awareness
- You value targeting quality over quantity
- You have the budget for a premium audience
Avoid LinkedIn ads if:
- You have a very limited budget
- You are targeting broad consumer audiences
- You are mainly focused on discounts and deals
- Advanced retargeting capabilities are essential
- You don’t have the expertise to manage campaigns in-house
Conclusion
While not a fit for every business, LinkedIn advertising can be a powerful tool when used strategically. The precision targeting, professional mindset of the audience, and flexibility of formats give LinkedIn ads unique upside for B2B marketing. However, the platform does come with higher costs and some technical limitations.
Businesses focused on connecting with decision makers, driving website traffic, generating leads, and elevating their brand should see significant returns from investing in LinkedIn ads. The key is taking the time to analyse your specific audience, campaign objectives, and budget to determine if LinkedIn makes sense for you compared to other advertising avenues. With the right targets and creative approach, LinkedIn ads can drive tremendous value.
