LinkedIn Ads 101: How B2B SaaS Companies Can Supercharge Growth and Maximize ROI
Setting up a growth marketing campaign via LinkedIn ad strategy can be a powerful way for B2B SaaS companies to reach and engage their target audience. In this guide, we will cover everything you need to know to create an effective LinkedIn ad campaign, including examples, typical budget, CPC, conversion rate, and best way to measure success.
Content
Setting Up Successful LinkedIn Ad Campaigns
LinkedIn Ad Formats for B2B SaaS Companies
Typical Budget for a LinkedIn Ad Campaign
Best Way to Measure Success of a LinkedIn Ad Campaign
Examples of B2B SaaS Companies Using LinkedIn Ads
Account-Based Marketing Campaigns with LinkedIn Ads
Frequently Asked Questions (FAQ)
Setting Up Successful LinkedIn Ad Campaigns
Step 1: Identify your target audience
The first step in setting up a LinkedIn ad campaign is to identify your target audience. LinkedIn offers a range of targeting options, including job title, industry, company size, and location. It's essential to have a clear understanding of your target audience, as this will ensure that your ads reach the right people.
Example: Let's say you are a B2B SaaS company that provides project management software for small and medium-sized businesses. Your target audience might be business owners or managers who work in industries such as IT, marketing, or finance.
Step 2: Set your campaign objectives
The next step is to define your campaign objectives. What do you want to achieve with your LinkedIn ad campaign? Do you want to increase brand awareness, generate leads, or drive website traffic?
Example: In our project management software example, your objective might be to generate leads by offering a free trial of your software to LinkedIn users who fit your target audience criteria.
Step 3: Choose your ad format
LinkedIn offers several ad formats, including Sponsored Content, Sponsored InMail, and Display Ads. Each format has its strengths and weaknesses, so it's essential to choose the format that best fits your campaign objectives.
Example: In our project management software example, Sponsored Content might be the best format, as it allows you to create engaging, visually appealing ads that appear in users' LinkedIn feeds.
Step 4: Set your budget
The next step is to set your budget. LinkedIn offers a range of bidding options, including Cost per Click (CPC) and Cost per Impression (CPM). It's essential to set a budget that aligns with your campaign objectives and target audience.
Example: Let's say you have a monthly ad budget of $5,000. You might choose a CPC bidding option and set a maximum bid of $3.00 per click.
Step 5: Create your ad
The next step is to create your ad. Your ad should be visually appealing, concise, and targeted to your audience. It's essential to use clear and compelling messaging that resonates with your target audience.
Example: In our project management software example, your ad might include a clear headline such as "Simplify Your Project Management," a brief description of your software's features, and a call-to-action that encourages users to sign up for a free trial.
Step 6: Launch your campaign and monitor performance
Once you have set up your campaign, it's essential to monitor performance and make adjustments as needed. LinkedIn offers a range of performance metrics, including click-through rate (CTR), conversion rate, and cost per conversion.
Example: In our project management software example, you might monitor the number of leads generated by your campaign, the conversion rate of those leads, and the cost per conversion. You can then adjust your targeting, ad format, or budget based on your campaign's performance.
Step 7: Optimize your campaign
Optimizing your campaign involves making data-driven decisions to improve its performance. This might include adjusting your ad copy, targeting, or bidding strategy to increase conversions and decrease costs.
Example: In our project management software example, you might optimize your campaign by refining your target audience based on the characteristics of users who have already converted, or by testing different ad formats to see which generates the most leads.
LinkedIn Ad Formats for B2B SaaS Companies
LinkedIn offers a range of ad formats to help B2B SaaS companies reach their target audience and achieve their advertising goals. Here are the most common ad formats on LinkedIn:
Sponsored Content
Sponsored Content is the most common ad format on LinkedIn. These ads appear in a user's LinkedIn feed and look like regular posts, but are labeled "sponsored." Sponsored Content can include text, images, and video, and can link to a company's website or landing page. Sponsored Content is a good choice for increasing brand awareness, driving website traffic, and generating leads.
Sponsored InMail
Sponsored InMail is a messaging format that allows companies to send personalized messages to LinkedIn members' inboxes. These messages can include text, images, and video, and can include a call-to-action to drive conversions. Sponsored InMail is a good choice for generating leads and promoting events, webinars, and other time-sensitive promotions.
Display Ads
Display Ads are banner ads that appear on the side or top of a LinkedIn page. These ads can include images, text, and logos, and can link to a company's website or landing page. Display Ads are a good choice for increasing brand awareness and driving website traffic.
Dynamic Ads
Dynamic Ads are personalized ads that include a user's profile picture and name. These ads can be targeted to specific audiences, such as job titles, industries, and companies. Dynamic Ads can include text, images, and video, and can link to a company's website or landing page. Dynamic Ads are a good choice for increasing brand awareness and driving website traffic.
Text Ads
Text Ads are small ads that appear on the top or side of a LinkedIn page. These ads include only text, with a headline, description, and a small image. Text Ads are a good choice for increasing brand awareness and driving website traffic.
Each ad format on LinkedIn has its own advantages and disadvantages, and the best choice for a B2B SaaS company will depend on their advertising goals and target audience. By creating a targeted and compelling ad campaign, using LinkedIn's ad formats effectively, and measuring campaign performance, B2B SaaS companies can use LinkedIn to achieve their advertising goals and drive business results.
Typical Budget for a LinkedIn Ad Campaign
The budget for a LinkedIn ad campaign can vary depending on your campaign objectives, target audience, and ad format. Generally, a minimum budget of $10 per day is recommended to start with. However, it's crucial to set a budget that aligns with your campaign goals and target audience.
Typical LinkedIn Ad Metrics
Here's some information on the typical performance and creative strategies for the different LinkedIn ad formats.
Sponsored Content
Typical CTR: 0.35%
Typical CPC: $5.61
Typical CR%: 2.58%
Best creative: Use high-quality images and video with clear messaging and a strong call-to-action. Test different visuals and messaging to see what resonates with your target audience.
Sponsored InMail
Typical CTR: 0.3%
Typical CPC: $0.80 - $1.00 per send
Typical CR%: 3.4%
Best creative: Use personalized and conversational messaging that highlights your value proposition and includes a clear call-to-action. Keep your messages short and to the point.
Text Ads
Typical CTR: 0.025%
Typical CPC: $5.26
Typical CR%: 1.5%
Best creative: Use concise messaging with a clear call-to-action, and test different ad copy variations to see what works best. Keep your ad creative simple and visually appealing.
Dynamic Ads
Typical CTR: 0.1%
Typical CPC: $3.24
Typical CR%: 0.95%
Best creative: Use personalized messaging and visuals that speak directly to your target audience, such as by incorporating their profile picture or company name. Test different ad creative variations to optimize performance.
Note that these metrics are provided as a general guideline and can vary based on various factors, including your targeting, bidding strategy, and ad creative. It's important to monitor the performance of your LinkedIn ad campaigns and make adjustments as needed to optimize results.
Best Way to Measure Success of a LinkedIn Ad Campaign
The best way to measure the success of a LinkedIn ad campaign is to track your campaign's performance metrics, such as click-through rate (CTR), conversion rate, and cost per conversion. You can also track other metrics, such as impressions, engagement rate, and social actions, to get a more comprehensive understanding of your campaign's performance. It's essential to set up conversion tracking and use attribution models to measure the impact of your LinkedIn ad campaign on your business goals.
Examples of B2B SaaS Companies Using LinkedIn Ads
Here are a few examples of B2B SaaS companies that have successfully used LinkedIn ads to drive business results.
HubSpot
HubSpot is a leading provider of marketing and sales software. They used LinkedIn ads to target their key audience of marketing and sales professionals. They created Sponsored InMail campaigns to promote their free sales and marketing tools, offering recipients a free trial of their software. By using LinkedIn ads, they were able to generate a 56% increase in click-through rates and a 200% increase in conversions compared to other advertising platforms.
ZoomInfo
ZoomInfo is a provider of B2B contact and company information. They used LinkedIn ads to drive leads for their sales team. They created Sponsored Content ads that highlighted their customer success stories, including testimonials and case studies. By using LinkedIn ads, they were able to generate a 57% increase in click-through rates and a 22% decrease in cost per click compared to other advertising platforms.
Salesforce
Salesforce is a leading provider of CRM software. They used LinkedIn ads to promote their events and webinars to their target audience of sales and marketing professionals. They created Sponsored Content ads that included a call-to-action to register for their events. By using LinkedIn ads, they were able to generate a 60% increase in click-through rates and a 70% increase in conversions compared to other advertising platforms.
These examples demonstrate the potential of LinkedIn ads to drive business results for B2B SaaS companies. By creating targeted campaigns, using compelling ad copy and visuals, and measuring campaign performance, B2B SaaS companies can use LinkedIn ads to generate leads, increase brand awareness, and drive website traffic.
Account-Based Marketing Campaigns with LinkedIn Ads
Many B2B SaaS companies are using LinkedIn for account-based marketing (ABM) campaigns. LinkedIn is a powerful platform for ABM because it allows companies to target specific companies, job titles, and industries with their advertising.
Here are a few examples of B2B SaaS companies using LinkedIn for ABM campaigns.
Terminus
Terminus is an account-based marketing platform that uses LinkedIn to reach key decision-makers at target accounts. They create customized Sponsored Content ads for each target account and use LinkedIn's account targeting features to ensure their ads reach the right people at those accounts. By using LinkedIn for their ABM campaigns, they have been able to achieve a 3x increase in engagement compared to other advertising platforms.
Marketo
Marketo is a marketing automation software provider. They use LinkedIn to reach decision-makers at target accounts with Sponsored InMail campaigns. They personalize their messages for each account and include a call-to-action to schedule a demo. By using LinkedIn for their ABM campaigns, they have been able to generate a 25% increase in leads compared to other advertising platforms.
Demandbase
Demandbase is an account-based marketing platform that uses LinkedIn to target key decision-makers at target accounts with Sponsored Content and Sponsored InMail campaigns. They use LinkedIn's account targeting features to ensure their ads reach the right people at those accounts. By using LinkedIn for their ABM campaigns, they have been able to achieve a 3x increase in click-through rates and a 7x increase in conversions compared to other advertising platforms.
These examples demonstrate how B2B SaaS companies can use LinkedIn for ABM campaigns to reach specific target accounts and decision-makers. By creating customized and personalized ad campaigns, using LinkedIn's targeting features, and measuring campaign performance, B2B SaaS companies can use LinkedIn to drive engagement and generate leads from their most valuable target accounts.
Setting up a growth marketing campaign via LinkedIn ad strategy can be an effective way for B2B SaaS companies to reach and engage their target audience. By following the steps outlined in this guide, you can create an effective LinkedIn ad campaign that generates leads, increases brand awareness, and drives website traffic. It's crucial to identify your target audience, set campaign objectives, choose the right ad format, set a budget, create a visually appealing ad, launch your campaign, monitor performance, optimize your campaign, and track your campaign's performance metrics to measure success.
Frequently Asked Questions (FAQ)
What is the minimum budget for LinkedIn ads?
The minimum budget for a LinkedIn ad campaign is $10 per day. However, it's recommended to have a budget of at least $5,000 for a 3-month campaign to achieve meaningful results.
How do I target my ads to the right audience on LinkedIn?
LinkedIn offers a range of targeting options, including job title, industry, company size, location, and more. It's important to identify your ideal customer persona and use these targeting options to reach the right audience.
How do I measure the success of my LinkedIn ad campaign?
LinkedIn offers a range of metrics to track the performance of your ad campaign, including impressions, clicks, CTR, and conversion rate. It's important to set specific campaign objectives and track these metrics to determine the success of your campaign.
What type of ad creative works best for B2B SaaS companies on LinkedIn?
High-quality images and video that communicate your value proposition quickly work well on LinkedIn. It's important to use clear messaging and a strong call-to-action to drive conversions.
How can I improve the performance of my LinkedIn ad campaign?
There are several ways to improve the performance of your LinkedIn ad campaign, including testing different ad creative and messaging, refining your targeting options, and using LinkedIn's conversion tracking and A/B testing tools to optimize your campaigns.
What is the typical cost-per-click (CPC) for LinkedIn ads?
The typical CPC for LinkedIn ads varies depending on a number of factors, including your targeting options, bidding strategy, and ad creative. However, the average CPC on LinkedIn is around $5.
Can I run account-based marketing (ABM) campaigns on LinkedIn?
Yes, LinkedIn is a great platform for running ABM campaigns, as it offers a range of targeting options based on company size, industry, and job title.
How can I ensure that my LinkedIn ad campaign is compliant with LinkedIn's advertising policies?
It's important to familiarize yourself with LinkedIn's advertising policies and ensure that your ad campaign meets these requirements. LinkedIn offers a range of resources and guidelines to help ensure compliance.