I received a coupon for $50 to spend on an advertising campaign on LinkedIn. I decided to use this to test my first ad campaign.
I set up a simple “conversion” form via wufoo, stuck it on a single page with a tracking code on one of my empty domains, grabbed a couple photos of my team and wrote some simple, direct copy for their two-line ad format. I created 4 variations. 2 text variations and combined one with each image.
The purpose of this test was to see if I could generate targeted, interested traffic and what the cost would be to bring one of those visitors to my site. I did not put a lot of effort into actually converting customers once they were on my site and in retrospect, it really was kind of embarrassing what they came to look at.
The result: no conversions.
However, I did learn that people are interested in what I was advertising and would click through and that these clicks will cost me about $3.50 each from LinkedIn. Our best performing ad received 12 clicks on 10,953 impressions – a CTR (“click-through-rate”) of 0.110%.
At the conclusion of the campaign, I immediately started researching what was a reasonable CTR to expect. Apparently LinkedIn and Facebook are similar in that they produce lower CTRs than Google AdWords. I read that 0.025% is considered ok on LinkedIn, or at least enough for them to continue to run your ad. By way of contrast, apparently 1% is a decent CTR on AdWords. I feel pretty good about my 0.11% on LinkedIn then!
Many commenters on other forums expressed frustration with the low CTR and high CPC (“cost-per-click”) on LinkedIn but it clearly works for more business-oriented products and services selling at a higher price-point. Consumer goods and low sale-price items are probably not good candidates for LinkedIn advertising.
The product we are test marketing is a b2b professional service with the expected net value of a sale (after service delivery costs) around $3000. If we spent $350 to convert one customer, our model might still be viable.
All my landing page really did was ask 3 qualifying questions and then ask them to provide contact information. Without any supporting pages, branding, endorsements and no giveaways or low-commitment ways to stay in touch, it is not surprising that no one completed the form. Many customers might have wanted to “bookmark” us for later consideration and I provided no way to do that.
Anyway, before I launch another campaign that brings many possibly interested individuals to my landing page, I will try to improve the page/website to convert better.