14 min
Should Startups Invest in LinkedIn Ads? - Ep 80 LinkedIn Ads Show
-
- Marketing
Show Resources Here were the resources we covered in the episode:
Low Budget Strategies Episode
Offers Episode
Who Should and Shouldn't Advertise on LinkedIn Episode
NEW LinkedIn Learning course about LinkedIn Ads by AJ Wilcox
Youtube Channel
Contact us at Podcast@B2Linked.com with ideas for what you'd like AJ to cover.
A great no-cost way to support us: Rate/Review!
Show Transcript Should small businesses run LinkedIn Ads? We're digging into why or why not on this week's episode of the LinkedIn Ads Show.
Welcome to the LinkedIn Ads Show. Here's your host, AJ Wilcox.
Hey there, LinkedIn Ads fanatics! We all know that LinkedIn Ads are expensive. So should small businesses even invest in them? It's not a straightforward question. So let's discuss what the requirements are for success on LinkedIn Ads, as well as the limitations that are present for small businesses, especially compared to large ones. If you remember all the way back to Episode One, we talked quite a bit about who should and shouldn't invest in LinkedIn Ads. We mentioned how the targeting is exquisite. Because when you need the targeting that LinkedIn has, there just is no substitute out there. But boy, do we pay dearly for that targeting. The cost per click, and the cost per impression on LinkedIn ads are quite high compared to the other platforms. So because the costs are high, you need to make sure that your company has a large enough lifetime value when you close a deal so that you can still realize a return on your investment. So for instance, if you have a really low cost product, say it's a SAS software, that you charge, maybe $50 or $100 per month, just the fact that your lifetime value is lower, is probably not going to allow you to get a return on your investment unless you have incredible customer retention. So I tell people, if you have a lifetime value of $10,000, or $15,000, or even higher, it's pretty much a no brainer to run LinkedIn Ads. But also because those costs per click and per impression are high. That also means that you need a higher budget for advertising. Higher budgets mean that you can get more clicks and more leads. And more volume is usually good for growth. Higher budgets also mean that you can learn faster from your tests and your experiments. So assuming you have the budget and the lifetime value, there are three things that are requirements for advertising on a social platform. I call this acronym amo, A-M-O, and it stands for your audience, your message and your offer. The audience is who you're targeting. And this is why we pay a premium to LinkedIn is this access to a very specific audience, the M you for your message, this is what your customer sees. And this is a combination of the ad copy you choose and the visuals, either imagery or video. Even the ad format that you choose. That's all part of the message. And then the O this is by far the most important part. This is what are you offering your prospect in exchange for their attention? Offers can be anything from come read this blog post to buy something now or everything in between? And this is funny, I just realized that the requirements for running LinkedIn Ads, spells blammo budget, lifetime value, audience message and offer. All right, so if you need help remembering this blammo, it's like one of those old 60s Batman blurbs that pops up when someone gets hit in the face - blammo! So when I get the question about whether small businesses should be advertising on LinkedIn, I think the inherent question inside of that is really should small budgets be spending on LinkedIn? I think there's this misconception that a small business automatically has a small budget, which is certainly not the case. We've worked with many clients who are very small companies with very large budgets. But I will admit, oftentimes these go together, we actually have a whole episode, it was back to Episode 14, all about how to advertise on really insanely small budgets. So go
Show Resources Here were the resources we covered in the episode:
Low Budget Strategies Episode
Offers Episode
Who Should and Shouldn't Advertise on LinkedIn Episode
NEW LinkedIn Learning course about LinkedIn Ads by AJ Wilcox
Youtube Channel
Contact us at Podcast@B2Linked.com with ideas for what you'd like AJ to cover.
A great no-cost way to support us: Rate/Review!
Show Transcript Should small businesses run LinkedIn Ads? We're digging into why or why not on this week's episode of the LinkedIn Ads Show.
Welcome to the LinkedIn Ads Show. Here's your host, AJ Wilcox.
Hey there, LinkedIn Ads fanatics! We all know that LinkedIn Ads are expensive. So should small businesses even invest in them? It's not a straightforward question. So let's discuss what the requirements are for success on LinkedIn Ads, as well as the limitations that are present for small businesses, especially compared to large ones. If you remember all the way back to Episode One, we talked quite a bit about who should and shouldn't invest in LinkedIn Ads. We mentioned how the targeting is exquisite. Because when you need the targeting that LinkedIn has, there just is no substitute out there. But boy, do we pay dearly for that targeting. The cost per click, and the cost per impression on LinkedIn ads are quite high compared to the other platforms. So because the costs are high, you need to make sure that your company has a large enough lifetime value when you close a deal so that you can still realize a return on your investment. So for instance, if you have a really low cost product, say it's a SAS software, that you charge, maybe $50 or $100 per month, just the fact that your lifetime value is lower, is probably not going to allow you to get a return on your investment unless you have incredible customer retention. So I tell people, if you have a lifetime value of $10,000, or $15,000, or even higher, it's pretty much a no brainer to run LinkedIn Ads. But also because those costs per click and per impression are high. That also means that you need a higher budget for advertising. Higher budgets mean that you can get more clicks and more leads. And more volume is usually good for growth. Higher budgets also mean that you can learn faster from your tests and your experiments. So assuming you have the budget and the lifetime value, there are three things that are requirements for advertising on a social platform. I call this acronym amo, A-M-O, and it stands for your audience, your message and your offer. The audience is who you're targeting. And this is why we pay a premium to LinkedIn is this access to a very specific audience, the M you for your message, this is what your customer sees. And this is a combination of the ad copy you choose and the visuals, either imagery or video. Even the ad format that you choose. That's all part of the message. And then the O this is by far the most important part. This is what are you offering your prospect in exchange for their attention? Offers can be anything from come read this blog post to buy something now or everything in between? And this is funny, I just realized that the requirements for running LinkedIn Ads, spells blammo budget, lifetime value, audience message and offer. All right, so if you need help remembering this blammo, it's like one of those old 60s Batman blurbs that pops up when someone gets hit in the face - blammo! So when I get the question about whether small businesses should be advertising on LinkedIn, I think the inherent question inside of that is really should small budgets be spending on LinkedIn? I think there's this misconception that a small business automatically has a small budget, which is certainly not the case. We've worked with many clients who are very small companies with very large budgets. But I will admit, oftentimes these go together, we actually have a whole episode, it was back to Episode 14, all about how to advertise on really insanely small budgets. So go
14 min