LinkedIn Ads – A Starter Guide – Part 2

LinkedIn Ads- About targeting, budget and value…

LinkedIn Ads are all about targeting, budget and understanding the value… DigitalAdvertisingWorks’ starter guide has all the answers – read on.

In this week’s post, we cover specific aspects of LinkedIn Ads such as targeting, budget and understanding the value of the platform. Make sure to have a read at our previous post where we look into creating a LinkedIn Ad in more detail.

Targeting your ad

You have an ad, now you have to focus on where to target the ad. The true power of LinkedIn is going to shine here. Even though Facebook and Twitter have some very familiar targeting options (think company, friends, age etc.) LinkedIn goes beyond that. You can search for skills/ interests, industry, employer, or job title with LinkedIn.

This means that you are able to target the specific audience that you want. As you start to select options, you can see your possible reach in the preview screen on the right. The concept of audience size is an important one to understand. On LinkedIn, audience size means the number of profiles that match your specific criteria. While this might mean that you have upwards of two million specific matches, there is no guarantee that people in your list are going to log in more than every few weeks.

If you ever feel your specified options are making your audience size too small to be effective, make sure to pay attention to the suggested options from LinkedIn. This is not unlike Google’s keyword recommendations. The more specific you are with developing your audience, the better your ROI (Return on Investment) is going to be.

How do you budget your LinkedIn ads?

Even though engagement is important, costs are going to determine what your options are. There are two basic pricing models for LinkedIn, CPM (cost per 1,000 impressions) and CPC (cost-per-click).

If you opt for the CPC option, the minimum CPC is $2. This means that LinkedIn is significantly more costly than Facebook or Google. LinkedIn will also give you suggestions on how much to spend to be able to reach the top position in your ad.

Even though the costs are a bit higher, people find that LinkedIn can be highly success for narrow reach efforts. If they are searching for a very specific segment, LinkedIn can be a lifesaver. This all depends on your own needs and financial possibilities though. Getting a new user for $2 might be good ROI or it might not be enough to keep your business afloat.

The minimum daily budget for LinkedIn is $10. You want to have enough of a budget so you can facilitate a minimum of 100 clicks daily, this will give you a chance to evaluate ad variations successfully. Remember that every click should be worth it because you want to use LinkedIn to connect with a very specific audience.

Understanding the value

Granted, LinkedIn does not offer the same mass-marketing channel that Facebook might, but with an estimated 100 million users in the United States and more than 259 million members worldwide, LinkedIn does have considerable reach.

While LinkedIn’s reach might be smaller, it is certainly more precise. We can attribute this to two different reasons:

  • You have excellent targeting options with LinkedIn, including the ability to target by interests, skills, role, employer, or job title.
  • LinkedIn users will often have more up-to-date and detailed professional information, especially when you compare this to personal profiles on Facebook.

The conclusion

There are countless options when it comes to how you want to spend your digital advertising dollars. This brief overview should give you a decent idea about using LinkedIn’s advertising platform to your benefit. Even though it is possible to have a great deal of success on LinkedIn, you have to remember that it is never going to usurp Facebook or Google as a primary marketing engine. However, if you have a very specific audience in mind, LinkedIn will be able to help you reach it.

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