Professional networking sites, like LinkedIn, have become valuable
places for networking but the value of any particular site hinges on the
number and the quality of the people using it. Many of these sites are
continually adding features and tools.
With the recent IPO of Facebook and all eyes on its business model
and financials, its ads division is getting extra attention, since it is
the main revenue driver of the Social Network. LinkedIn has been
quietly increasing its own ads efforts.
LinkedIn Ads are divided into Marketplace and Premium categories.
Marketplace Ads are “smaller” and are seen in the right column with a
small graphic and short copy. The Premium Ads are the “larger” Ads
reserved for companies with a monthly budget of $10,000-$30,000 per
month, and as such are really only accessible to the larger brands.
This article will focus on the Marketplace Ads, which are accessible
to the vast majority. The following are the pros and cons of LinkedIn
Ads for small business.
Pros:
1. B2B Market
LinkedIn is a fantastic tool for B2B companies because its
demographic is working professionals. There is really no other network
that provides the exposure LinkedIn does in the B2B arena.
2. Access to International and U.S. Markets
LinkedIn’s demographic is also highly international. This provides
great opportunities whether you are looking to target the U.S. market
alone, or take on the International market as well.
3. Targeted Ads
Even without any targeting, the chances of an ad being displayed to
the targeted demographic is almost ½. However, LinkedIn does a fantastic
job at providing filters to target your desired audience.
LinkedIn allows you to filter the audience by geographical area, by
gender, by hierarchy/position within the organization, by age, by
preferences, and even by specific companies. If you know your target
market, LinkedIn Ads can define it.
4. High Conversion Rates
Individuals that land on the desired page after clicking your ad are
more likely to take the action that you want them to. Whether it is to
sign up to receive a newsletter, an eBook, a free consultation, or even a
purchase, individuals prove to be more eager to take action if the
content fulfills their interests.
Cons:
1. Low Engagement
LinkedIn Ads have the lowest Click Through Rate compared to all other
social media advertising platforms. The average CTR on LinkedIn is
0.025% which compares poorly to Facebook’s 0.05% and Twitter’s 1%.
This is compensated by the high conversion rate discussed above in
the Pros column, but ultimately depends on your landing page’s design.
2. Cyclical
This one may be a pro or a con depending what your intentions are as a
marketer. Activity on LinkedIn is highest Monday through Friday and
peaks around mid-week.
If you are going to start a brand new campaign it is recommended that you do so early in the week.
3. Expensive
Compared to Facebook and Twitter, LinkedIn Ads are expensive. Of
course it depends on how you target your ads but you can expect bids to
cost over $2 per click.
Having said that, if these ads are for B2B companies, those tend to
be big-ticket items, which should yield a high return on the investment.
At the end of the day, the return is all that really matters.
A company cannot be all things to all people but LinkedIn ads provide
small businesses the opportunity to manage ad campaigns with the
potential of one that is much larger. Weigh out the pros and cons to
determine whether LinkedIn ads are right for your business.
Yo Noguchi
