Are your LinkedIn ad campaigns underperforming? You’re not alone. According to recent research, three out of four LinkedIn ads are ineffective. That’s a lot of wasted budget. But don’t worry, it’s absolutely possible to achieve a better return on your ad spend.
Why LinkedIn Ads Matter
While organic reach on LinkedIn is declining due to oversaturation and algorithm changes, paid advertising remains a powerful tool for reaching your target audience. LinkedIn has become the primary platform for B2B marketers looking to generate high-quality leads. Unlike other platforms like Google and Facebook, LinkedIn offers unparalleled targeting capabilities, allowing you to reach specific job titles, industries, and company sizes.
Common Mistakes That Waste Your Ad Budget
Many advertisers make critical mistakes that cause them to overspend on LinkedIn. Here are the most common pitfalls to avoid:
- Incorrect Audience Targeting: When starting a campaign, make sure to change the geo-location setting from “recent or permanent” to “permanent.” This ensures your ads are shown only to people who claim to live in a specific location.
- Enabling Audience Expansion: Always uncheck the “enable audience expansion” box. This feature can lead to wasted ad spend and lower-quality traffic.
- Using LinkedIn Audience Network: While it sounds appealing, the LinkedIn Audience Network often results in low-quality traffic. It can also cause the majority of your ad spend to be used outside of the LinkedIn platform.
- Default Bidding Method: LinkedIn’s default “maximum delivery” bidding method is one of the most expensive ways to pay for traffic. Switch to “manual cost per click bid” to pay only when someone clicks on your ad.
- Overbidding: LinkedIn will often recommend bidding significantly higher than necessary. Start with a lower bid than recommended and increase it gradually until you reach your desired spend.
Thought Leader Ads: A Powerful Tool
One of the most effective ad formats on LinkedIn is the thought leader ad. These ads boost the organic posts of an individual, rather than a company, and are highly effective for getting attention. Because people tend to connect more with individuals than with brands, thought leader ads often achieve engagement rates that are six to fifteen times higher than company page ads.
Here are a few tips for using thought leader ads effectively:
- Start with Awareness: Use thought leader ads to introduce your brand through trusted individuals, like your CEO or industry experts.
- Retarget Engaged Users: Follow up with Company Page ads targeting those who engaged with thought leader content.
- Expand beyond employees: LinkedIn now lets you boost posts from non-employees, creating new opportunities for influencer marketing and user-generated content.
- Prioritize video: Video thought leader ads outperform static content. Encourage key team members to share short, insightful videos to maximize reach and credibility.
What’s Working for B2B Marketers on LinkedIn
LinkedIn continues to refine its ad offerings, and certain strategies are proving to be especially effective for B2B marketers. Here are some key approaches delivering strong results:
- Retargeting Options: LinkedIn has expanded its retagerting capabilities, allowing you to target users who have visited your company page, interacted with a thought leader ad, or watched a certain percentage of your video ads.
- Document Ads: Document ads that are formatted as presentations instead of ebooks or guides tend to perform better, as they are easier for users to digest.
- Vertical Video Ads: You can now run video ads in vertical format, designed specifically for mobile.
LinkedIn Ads offer unmatched potential for B2B marketers, but success requires intentional strategy and optimization. By refining your targeting, avoiding common budget-wasting mistakes, and leveraging high-performing ad formats like thought leader ads, you can maximize results and turn LinkedIn into your most powerful advertising tool.
Ready to improve your LinkedIn ad strategy? Start by auditing your current campaigns and implementing these tips today!
