With 90 million senior-level influencers, 63 million decision-makers, and another 6 million decision-makers from the IT sector active on LinkedIn in 2019, there is an enormous opportunity present on LinkedIn for B2B SaaS companies, today.
While there’s plenty to gain from organic LinkedIn content — from driving business results with a personal brand to creating videos that engage — there’s also an immense benefit to advertising on LinkedIn.
This article will explore what bidding strategies you should use for top-performing LinkedIn ads.
Bidding for Performance
When you originally begin your LinkedIn Ads bidding strategy for your B2B SaaS company, be sure you set your initial budgets high. In this instance, you want to set them artificially high; so high you would never hit the limit of your overall budget. By doing this, you create ample opportunity to learn how much your LinkedIn ads average daily, without hitting your budget. (It is important, however, to set daily limits so you don’t go crazy on ad spend.) Once you find this number, you can then lower your budget to just above your average to ensure you make the most of your daily LinkedIn marketing budget.
Then, you need to set your budgets low. This is the opposite strategy of your initial bids. Start at less than $5 USD when you begin. Keep lowering your bid until LinkedIn will not let you anymore. By doing this, you will remain within your budget and pay the lowest cost per click (CPC) available for your LinkedIn ads for your B2B SaaS company.
In the unfortunate event you hit your budget during the day, this is a clear indicator you are paying far too much for each click along the way. You will need to decrease your bid in order to prevent running into this issue again in the future.
Advanced Sponsored Content Bidding
When you begin to break down your LinkedIn ads performance for your B2B SaaS company, you need to consider your click-through rate (CTR). Your CTR will determine how well your LinkedIn ads are performing along with the effectiveness of your call to action (CTA).
If your CTR is under 0.35%, you may want to consider launching new ads. This low of a CTR indicates that your ad is not performing well, so it is not converting any of your prospects or encouraging them to complete your desired action. You can try tweaking your LinkedIn ad for your B2B SaaS to see if you missed a setting or didn’t clearly word your CTA. However, if everything looks correct, you may need to scratch the idea and start fresh.
Now, if you have a CTA that has CTR that is between 0.35% and 1.00%, you have a good CTR. At this point, you can greatly benefit from performing one of two actions:
- Lower your bid to obtain the lowest CPC
- Bid higher to gain more traffic to your site
Both actions have their benefits. Your goals (cost or traffic) will determine which strategy makes the most sense for you to adopt.
If your ad performs above 1.00%, you have a LinkedIn ad that, for a B2B SaaS company, can be considered a great ad. You will highly benefit from changing your current bid type from cost per click (CPC) to click per impression (CPM). You will also want to adopt an aggressive bid strategy for big discounts from LinkedIn. Use this strategy when possible to beat the LinkedIn auto-bid strategy.
Interested in learning more about implementing strategies for success on LinkedIn? Our Comprehensive LinkedIn Ebook has you covered.