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Stop Being Scared of $5 Clicks on LinkedIn Ads

“I get $.50 clicks on Facebook, why would I pay for $5 clicks on LinkedIn?”

On the surface, it’s a valid question. If we dig a little deeper, we learn it’s the wrong question.

Most everyone in paid media gets it wrong. They are so concerned with the micro metrics that they lose sight of the macro metrics. And in business, the macro metrics are everything. Businesses don’t thrive on a super low cost per click (CPC) or a super high click-thru rate (CTR).

Marketers get buried in cost per click, click-thru rates, cost per impressions (CPM) and it all matters very little.

I’ve had horrible CTRs and high CPCs/CPMs that have crushed the macro metrics.

So marketers, instead of looking at micro metrics, look at macro.

I assure you that your boss doesn’t give two rips about your CTR or CPC. They care about generating consistent leads, increasing sales and doing so profitably.

Your micro metrics are guideposts, but they are not king. Macro is king. And macro is based on what the company’s ultimate advertising goal is.

In SaaS, we are often tasked with the macro metric of increasing the amount of scheduled demos. Our ultimate metric is Cost Per Demo.

If the company is paying a $300 cost per demo and they generate 50 demos in a month, they are paying $15,000 in ad spend. If they know they close 20% of all demos given, they can be confident that they will close 10 of the demos. If the average lifetime value of those 10 new clients is $10,000, we are crushing the macro.

Spending $15,000 to generate $100,000 is a great formula to scale quickly, predictably and profitably.

If you throw in the average monthly cost of a premium B2B LinkedIn ads agency ($5k-$10k/mo), you are still built to scale at healthy margins.

Does anyone care about the micro metrics from that math? Nah, not really.

Companies, marketers and salespeople often look at more expensive traffic as a bad thing.

It’s not a bad thing, it’s a great thing. It prunes out the weak and also typically means higher quality.

I cut my teeth in digital media buying the old school way. Reaching out to individual websites one by one and negotiating insertion orders (advertising contracts).

One of the early lessons I learned was that the cheapest traffic was often the worst quality traffic.

Poor placements, bot traffic, etc.

The more expensive traffic often converted the highest. In advertising, you often get what you pay for. Cheap clicks, cheap quality traffic. Expensive clicks often means high quality, highly targeted traffic.

I’d like to help marketers realize that great micro metrics don’t equate to great macro metrics and vice versa.

You can have garbage micros and great macros and great micros and unprofitable macros.

And LinkedIn is no exception. LinkedIn is a goldmine, especially for those in the B2B space. Sure, your micro metrics might not seem great (high CPC), but you can absolutely crush your macros. This is for one reason, you are paying to get in front of the right person with the right message at the right time.

With Google and Facebook you never quite know if you have the “right” person. You can’t target as cleanly on job title, job function, or company size like you can on LinkedIn.

With LinkedIn, you distinctly know who you are targeting, their role, job function, seniority, company size and more.

And yeah, that’s well worth the price of paying a higher CPC. Because, as I continue to harp on it, micro matters little and macro matters lots.

And if you can pay a higher CPC to generate a lower cost per demo, you’ll take that all day long if you are one of my SaaS clients.

Why LinkedIn Ads > Facebook Ads For B2B Companies

One of our current clients in the B2B SaaS space has been absolutely floored with LinkedIn results.

The only place they were buying traffic was on Facebook prior to working with us. Their average lifetime value of a customer is $30,000.

On Facebook, they were paying .50 CPC and $10 for leads to opt-in to their free education. By all measure, really incredible metrics for a $30,000 LTV.

The cost for actually generating a demo was $400. All this tells me is that they were generating a lot of unqualified leads at $10 a pop.

A perfect example of great micro metrics that resulted in pretty average macros.

On LinkedIn ads, we were paying $3-$6 per click and $40-$60 for a lead to opt-in.

For someone not familiar with LinkedIn ads, these costs look horrible compared to Facebook.

Because we were able to get a clearly defined target customer from the client, we were able to do a great job of building out laser-focused targeting for the LinkedIn campaigns. So, while the micro metrics didn’t seem so hot at first glance, we were able to average $150 - $250 cost per demo.

That’s the lowest cost per demo out of any marketing campaign that they have ever run.

Not only that, but it generated two sales in the first two months, a $60,000 value on less than $8,000 in ad spend.

Even adding in the advertising management fee and the sales commission, the margins are in a perfect position to increase ad spend and scale the campaign.

Moral of the story, macro metrics are king and if you’re a B2B company not advertising on LinkedIn, what are you waiting for?

If you’re a B2B SaaS company, click here for a free LinkedIn advertising resource and campaign checklist.

Rob Nunnery