Are you thinking about advertising on LinkedIn but you’re not sure whether it’s a good marketing channel for your business? We already know about other social media platforms that offer advertising like Facebook, Twitter, Instagram, Pinterest, Snapchat, and of course, the latest, TikTok. Let’s take a look at some of the key factors to take into consideration when assessing your marketing strategy and considering LinkedIn ads for your business.
What Are My Other Advertising Options?
At Efferent Media, our clients often ask, should I be advertising on Facebook and Google? As we have seen over the years, both Google and Facebook are the most popular forms of advertising among businesses in the U.S. The question that often comes after this is “What about LinkedIn?”
LinkedIn advertising offers businesses an arsenal of professional targeting tools to reach key decision-makers based on various targeting criteria like industry, size, job function, seniority and more. However, before you consider LinkedIn advertising, you should consider the following:
Total Audience Size
Business Type (B2C vs. B2B)
When comparing LinkedIn’s total audience size to Facebook, LinkedIn has 738 million users while Facebook has more than 2.7 billion. Facebook clearly has the edge in total audience size. The value of this is the ability to reach a broader set of consumers for B2C and B2B businesses looking to identify their ideal target audience.
The Facebook Ads platform is infamous for the precise audience targeting based on interests, behaviors, demographics, location, and connections. This ability combined with the feature of creating custom remarketing and lookalike audiences gives Facebook the marketing edge for B2C companies.
Conversely, LinkedIn offers a more defined professional audience of people interested in networking, displaying their professional profiles, career-related topics, and connecting with like-minded influencers in their industry. The ability to target professional demographics as specific as job titles and company names along with matching Facebook’s ability to create custom remarketing lists and lookalike audiences, makes LinkedIn advertising the way to go if B2B is your priority.
In general, when we look at the demographics of LinkedIn compared to other popular advertising platforms like Facebook and Google, we can see that the core audience group on LinkedIn consists of older, highly-educated, and higher-income professionals. The largest percentage of users are 46-55 years old. Another important takeaway is that 70% of users live outside of the United States. This would cater further to any B2B business operating internationally and planning to expand further.
Overall, LinkedIn ads cost more and the platform is more expensive for your marketing budget than Facebook or Google Ads. The average cost per click on LinkedIn is $5.26 compared to $1.72 on Facebook. The average cost per lead based on LinkedIn is generally much higher as well.
However, just because Facebook is the cheaper option doesn’t mean it will necessarily work better in terms of ROI and lead generation for your particular business. As a B2B company, the traffic and leads you get from LinkedIn ads might cost more, but they will often be more qualified and have a higher closing rate.
When to Start Advertising Your Business on LinkedIn
As you can see, the best platform for your business depends on the audience you are targeting, the type of business you are advertising for, whether you have developed an ideal target audience persona, and your total marketing budget.
For businesses just starting out that do not have their target audience defined, we would recommend starting on a lower-cost platform to help develop a more refined ad strategy. If you have a B2B business, your ideal target audience is already defined and specific, and you have a generous marketing budget, LinkedIn ads will be the best fit for your business.
Start Generating Leads on LinkedIn with Efferent Media
To get started on developing a LinkedIn ads strategy and closing B2B leads from key decision-makers, contact the social media professionals at Efferent Media.