Best LinkedIn Ads Bidding Strategy for B2B SaaS Companies
With 90 million senior-level influencers, 63 million decision-makers, and another 6 million decision-makers from the IT sector active on LinkedIn, there is an enormous opportunity for B2B SaaS companies to generate new leads.
While there’s plenty to gain from organic LinkedIn content—from driving business results with personal branding to creating videos that engage prospects — there’s also an immense benefit to advertising on LinkedIn.
Let’s explore which bidding strategies you should use to generate top-performing LinkedIn ads.
Begin with a basic bidding strategy
When you begin your LinkedIn Ads bidding strategy for your B2B SaaS company, be sure you set your initial budget high. In this instance, you want to set them artificially high; so high you would never hit the limit of your overall budget. By doing this, you create ample opportunity to learn how much your LinkedIn ads average daily, without hitting your budget. Note that it is still important to set daily limits so you don’t go crazy on ad spend.
Once you find your daily average, you can then lower your budget to just above that average to ensure you make the most of your daily LinkedIn marketing budget.
After you collect the initial data, you then need to set your budgets low. This is the opposite strategy of your initial bids. Start at less than $5 USD when you begin. Keep lowering your bid until LinkedIn will not let you anymore. By doing this, you will remain within your budget and pay the lowest cost per click (CPC) available.
In the unfortunate event you hit your budget during the day, this is a clear indicator you are paying far too much for each click along the way. You will need to decrease your bid in order to prevent running into this issue again in the future.
Analyze the data to refine your bidding strategy
When analyzing your LinkedIn ads performance, you need to consider your click-through rate (CTR). Your CTR will determine how well your LinkedIn ads are performing along with the effectiveness of your call to action (CTA).
If your CTR is under 0.35%, you may want to consider launching new ads. This low of a CTR indicates that your ad is not performing well, so it is not converting any of your prospects or encouraging them to complete the desired action. You can try tweaking your LinkedIn ad to see if you missed a setting or if you didn’t clearly word your CTA. However, if everything looks correct, you may need to scratch the idea and start fresh.
If your CTA that has CTR that is between 0.35% and 1.00%, you have a good CTR. At this point, you can greatly benefit from performing one of two actions:
- Lower your bid to obtain the lowest CPC
- Bid higher to gain more traffic to your site
Both actions have their benefits. Your goals (cost or traffic) will determine which strategy makes the most sense for you to adopt.
If your ad performs above 1.00%, you have a LinkedIn ad that, for a B2B SaaS company, can be considered a great ad. You will highly benefit from changing your current bid type from cost per click (CPC) to click per impression (CPM). You will also want to adopt an aggressive bid strategy for big discounts from LinkedIn. Use this strategy when possible to beat the LinkedIn auto-bid strategy.
LinkedIn is a critical tool for B2B SaaS sales, and LinkedIn ads can take your company to the next level. Follow these bidding tips to get the most bang for your buck.