How Growth Hackers Advertise on LinkedIn
LinkedIn is one of the dominant social media platforms of online space. Unlike other major players, LinkedIn is unique in its focus on business. The social element of the platform has to do with business to business networking and content sharing.
With over 700 million users, LinkedIn can be a synergistic tool for many businesses. The website's three billion user goal is indicative of the growth in store for the future. However, it's important to realize that the platform serves some business models better than others.
AJ Wilcox is a specialist who thrives on developing result-driven LinkedIn strategies for his clients. He has powerful insights for growth hackers looking to use the professional networking site to increase their bottom line.
About AJ Wilcox
AJ Wilcox is the founder of a LinkedIn ads agency called B2Linked. He provides actionable strategies to organizations that seek measurable results. AJ started with SEO and found himself gravitating towards LinkedIn-based strategies after stumbling on the website's ad service. He now has over 12 years of experience in digital marketing, 5 of which are with his agency.
AJ's agency offers done-for-you ads as well as consulting on how to succeed on the platform. His knowledge and experience can prove useful for entrepreneurs interested in leveraging LinkedIn for their own endeavors.
Should You Advertise on LinkedIn?
LinkedIn is more expensive for advertisers than other social media platforms. On the positive side, it allows for tighter business targeting. More expensive ads also mean there is a bigger barrier to entry. This can be positive for those willing to use LinkedIn to overtake some of their more cost averse competitors. Determining whether or not your business is a good fit for LinkedIn is a balancing act between your business's attributes and what the platform offers.
Define Your Audience
To know whether you can achieve success on LinkedIn, it is important to define your audience. Defining a customer avatar that closely represents your ideal prospect will guide your decision on how to move forward.
Define Your Message
Your target audience will respond best when you have a consistent message. Your content may vary but your presence on the platform should define your brand.
Set Maximum Cost Per Click
Start by doing some theoretical budgeting of your own. How much are you willing to pay per lead and per conversion? Next, when creating your ad campaign, use the platform's suggestion as a guide. Bid the minimum suggested cost per click. LinkedIn will give you feedback on that number. A little trial and error will bring you to the best amount to start off with.
LinkedIn Growth Hacking for Maximum Results
Efficiency should be your goal in working for optimal results. Choosing the highest possible cost per click will not get you anywhere if you do not have a strong landing page. A strong offer in conjunction with a well-designed landing page will drive down your cost per lead.
For some types of advertisers, even a low conversion rate can be viable if the close rate is high enough. However, you will need to do everything else well so as to be able to land sales. Furthermore, a high enough profit margin is required so that you can absorb the higher cost per click.
Types of Conversions
With LinkedIn ads, you have two different types of conversions to worry about. Your first point of contact happens when users see your ads. Therefore, you are aiming to grab their attention and turn viewers into leads.
When you are able to insert users into your digital marketing funnel, your main concern becomes converting your prospects into sales.
Balancing Ad Cost and Profit Margins
It's not uncommon to spend over $1000 on LinkedIn to close a customer. This makes sense if you are making $15,000 per sale or customer lifetime value. LinkedIn varies distinctly from other social media sites in this respect. With Facebook, for example, you may only need a few dollars in order to close a customer. However, you will likely not be closing five or six-figure clients on Facebook in the same way.
Keep in mind that even if a business doesn't have a very high customer lifetime value, having a higher conversion rate can still make LinkedIn viable. The smaller the amount you have to pay per conversion, the smaller your customer's lifetime value needs to be in order for ads to be sustainable.
The Example
AJ Wilcox talks about an example where his company wasn't able to get a client's cost per lead to under $138. AJ recalls that he was sure that he would end up losing that client. However, the client came to AJ with a different piece of content to use in the campaign. This piece of content was an e-book that ended up dropping the cost per lead to $23. It turns out that the client's audience was far more interested in the specific offer.
Growth Hacking With LinkedIn
LinkedIn offers you the capability of targeting users based on job title, department, level of seniority, skills, names of groups, company name size, industry, level of education, interests, and several other categories. If you have a strong grasp on your target audience, your ability to reach them on the networking site skyrockets. AJ states that only about 20% of his clients come to him without having a good idea of their customer avatar.
Businesses That Should & Shouldn't Advertise on LinkedIn
LinkedIn is ideal for high-value lead generation. A company looking to hire a marketing manager is a great fit for the platform. Likewise, higher education and financial services can achieve a good return on investment.
On the other hand, e-commerce is not a good fit. Unless your e-commerce endeavor is B2B-related, profit margins will usually not cover your ad costs. Furthermore, LinkedIn users are not particularly receptive to online retail offers.
LinkedIn is a great place for service-oriented organizations with high lifetime customer values. If your are a service provider that ads value to professionals or other businesses, start leveraging LinkedIn today.