tuff-customer-acquisition-using-facebook-ad

How To Scale User Growth Using Facebook Ads

We sometimes get questions about how other clients work with Tuff to reach their growth goals — so we’re sharing some stories to help bring our services to life.

Author’s note: This post was originally published in 2018, it has since been updated for 2022! 

Thnks is a platform designed to help users build business relationships by sending thoughtful gestures of appreciation. With a curated catalog of gifts, personalized messages, and more, Thnks is helping sales organizations, marketing groups, customer success teams, and more grow their business.

Why Thnks Tapped Into Paid Social Acquisition

Any company looking to grow through paid social has to consider a few things before getting started.

First, you have to work towards building your audience in the right channel. Secondly, understand that it takes time.

Scaling growth requires you to be rigorous about the channels you experiment with in the early stages of your business. It might seem easy to find one right away and then dump all your money into that one tactic but that almost never happens. Testing, analyzing, and optimizing is a great three-prong approach to finding the recipe for success.

We found the most success with user acquisition for Thnks with social ads, specifically Facebook. With a wide range of targeting options to help businesses find the right niche to reach their target audience,  Facebook ads can be a highly cost-effective channel for customer acquisition. We launched Facebook and Instagram campaigns with highly specific interest and demographic targeting with ads that were relevant to those audiences. Our goal was to help grow overall user growth, while also finding efficiencies along the way. 

The Three-Step Process

Step 1: Conduct user research and identify key audiences to target

Figuring out the right targeting is key to reaching the audiences most likely to convert. As an agency, you can lean on your client’s customer-facing team members. If you’re in-house, partner with your support team to learn more about your customers and their goals and interests. This background information is vital in crafting audiences that can attract and convert your target customer.

For our core audiences, we relied heavily on interest and demographic targeting. Knowing that sales and human resources are Thnks primary customers and highest converters, we did testing of different variations of demographic and interest targeting to create the perfect mix of both to find the ideal audiences. In addition to core interest- and demographic-based audiences, we also built out lookalike audiences using website traffic, used existing customer email lists as well as leveraged pixel data from our ads, and created lookalike audiences of people who successfully submitted leads or interacted with our ads.

Step 2: Develop custom creative for each audience

Once we were confident that our targeting options were set up to attract the right audience, we then had to look at the end product–the ads. Knowing that we were going to be targeting specific people in the sales and human resource fields, we needed to build ad creative and copy that spoke to those people.

Thnks Ad Examples

The major difference between the two ad designs is that the sales creative relates to people in that specific role that are looking to prospect new clients and close deals. The human resource ad calls out use cases for people in the role to “welcome new employees”, keep current employees happy, and show them you care. These differences may not seem like a lot at first, but speaking directly to these audiences with this messaging showed an immediate lift in performance. 

Step 3: Analyze and improve

Looking back on your data and analyzing results is one of the most important steps of the whole process. Figuring out what is and isn’t working is the first step to being able to scale and grow users. Through this process, we were able to scale what was working and optimize away from what was not. As a result, we were able to scale Thnks users by 81% in just 30 days.

Sales Audience Growth:

Human Resource Audience Growth:

At the end of the day, there really is no secret sauce to finding success through paid acquisition.

It’s only with meticulous research on your target audiences, testing different creative and ad copy, and analyzing and optimizing based on your data you can find success. Growth is a journey, not an overnight magic trick. 

 

We’d love to work with you.

Schedule a call with our team and we’ll analyze your marketing, product, metrics, and business. Then, present a Growth Plan with actionable strategies to find and keep more engaged customers.

LinkedIn Ads Cost

How Much Do LinkedIn Ads Cost?

LinkedIn Ads Cost

Author’s Note: This post was updated on Feb 1, 2022, with updated data, resources, and templates for you to use. 

It’s a simple truth that success in business requires success in advertising. As businesses evolve and learn to operate and diversify their channel mix, growth marketing becomes more important with each passing day. As a growth marketing agency, it’s our job to test new channels with clear metrics, kill ones that don’t work, and scale up the channels that do. 

For many business owners, online advertising begins and ends with Google Ads and Facebook Ads. However, while LinkedIn Ads cost more, savvy businesses recognize the specialized benefits this platform offers.

If you need a new channel to generate leads and traffic, LinkedIn can present an ideal solution. What’s more, if you work in the B2B space, LinkedIn offers a veritable goldmine of potential customers. According to data collected in 2021, Linkedin is the most used social media platform for B2B marketers at 96 percent.

LinkedIn Ads Cost: Is It Worth It?

Though LinkedIn stands as a juggernaut in the world of B2B commerce, its advertising opportunities can provide clear benefits for companies of all shapes and sizes. Whether you own or market for a university, nonprofit, or another type of organization, you can utilize LinkedIn for targeted goals to achieve success. 

Also, keep in mind that the ROI on your LinkedIn Ads cost is not only apparent in new customers, but also in potential employees. Any savvy business owner knows that finding the right applicant is less about dangling a hook, and more about finding the right spot and casting a net.

That said, B2B companies do represent the standard candidates for LinkedIn advertising. Before you commit resources to the platform, ask yourself whether a career-minded professional would have an interest in your service, product, or offer. If your answer is “yes,” then LinkedIn likely offers a good avenue for you to follow. 

Remember, people join and engage with LinkedIn to further their careers, network with other professionals, establish business contacts, and find new jobs. Whatever your offer or message, it needs to appeal to people engaged in these activities. 

How Do LinkedIn Ads Work?

Though LinkedIn advertisements do not appear as obvious as ads through other platforms, an engaged user will encounter them on a daily basis. As typical with online advertising, LinkedIn Ads cost different amounts and exist in different forms. If you decide to advertise on this platform, you can choose between Sponsored Content, Sponsored InMail, Text Ads, and Dynamic Ads.

Sponsored Content

The native advertisements users see most frequently, Sponsored Content operates on the LinkedIn Ads cost-bidding structure to surface in users’ news feeds. When it appears, a piece of Sponsored Content will look similar to any typical LinkedIn post. You can create Sponsored Content in a few different formats. 

Single image ads are typical feed ads composed of a single image paired with some text. A video ad allows you to substitute a short clip for the static image. Lastly, carousel ads consist of a swipeable series of images that allow advertisers to tell a story, display multiple offers, or provide an audience with business insights.

Sponsored Messaging

With Sponsored Messaging, you use LinkedIn Messaging to send advertisements to specified prospects. This program only targets people who engage with LinkedIn frequently. It also comes with delivery caps that increase the chance your messages actually get read. Sponsored Messaging is ideal for a few types of goals, including:

  • Reach your audience in a personalized way
  • Keep potential clients engaged to drive qualified results
  • Accelerate your lead pipeline

In addition to your unique goals, you can also choose between two different messaging ad formats- Message ads and Conversation ads:

  • Message ads: Drive stronger engagement and responses than traditional emails. Message ads also offer one call to action button.
  • Conversation ads: Turn conversation into quality conversions. Conversation ads offer multiple call to action buttons that can link to specific landing pages or lead generation forms.

Text Ads

Text ads appear on a desktop in LinkedIn’s right column area. You can choose between four formats for these ads: horizontal, long, tall, and square. With text ads, you can directly target a premium audience to derive top-quality leads. Text ads also allow for tight control of how much your LinkedIn Ads cost. For example, this type of ad has no contract or commitment requirement. You only pay for ads that work via clicks or impressions.

Dynamic Ads

These ads capture immediate attention with ads automatically personalized for the individual user. Dynamic ads feature a LinkedIn member’s own profile data, including company name, profile data, job title, a photo, and more. Thanks to automation, you can launch dynamic campaigns quickly with individually populated ads across the LinkedIn desktop. Dynamic ads are ideal for a few types of goals, including:

  • Personalizing the experience for your audience members.
  • Automated individual campaign at scale
  • Customizable ads for the specific market objective you are looking to capture.

What Is the LinkedIn Ads Cost Breakdown?

With LinkedIn, you customize the amount you spend and bid on ads. This means that LinkedIn Ads cost different amounts from campaign to campaign. Typically, advertisers on Linkedin pay an average price of $5.26 for every click. 

LinkedIn requires a minimum bid of $2 for CPC and cost-per-impression (CPM) campaigns. This results in averages of $5.26 for the clicks and $6.59 for every 1000 impressions your ads generate. Sponsored InMail presents the most expensive option, with an average of around $.80 for each send in the campaign.

Your actual LinkedIn Ads cost will depend on three factors

Target Audience

Advertising on LinkedIn centers on competition between advertisers for a target audience. If you want to go after a high-demand audience, you will pay more for your campaign. There are two reasons for this: the audience’s perceived value, along with the number of competitors for their attention.

Bid Amount

Of course, the amount of your bid also influences your LinkedIn Ads cost. Though you will never pay higher than your bid amount, you will pay some percentage of it. This occurs because LinkedIn’s advertising auctions require the winner to pay one cent more than the runner-up bid.

Ad Relevance Scores

The relevance and value of your ad plays a huge factor in your LinkedIn Ads cost. If you achieve a high score in regards to relevance, your expenses will actually decrease. This occurs because LinkedIn actively wants to provide engaging ad content to its users.

Your Budget and Bidding Options

LinkedIn Analytics

Advertisers on LinkedIn have three options for the control of an advertising budget. 

Total Budget: You set a total budget for the entire ad campaign. This works best for those who want to quickly deliver a campaign for a set amount of money. The minimum you can spend is $10 per campaign.

Daily Budget: Another type of budget with a $10 minimum, the daily budget suits those who want to design a campaign that runs on a continuous basis.

Setting Bids: As discussed above, setting a bid means that you identify the maximum amount you will spend for impressions, clicks, or sends. You will never pay more than your bid. For this option, LinkedIn has established a $2 minimum for every click.

You have three options when you bid for LinkedIn Ads. The first is cost-per-click (CPC). This means that you pay when users click on your ad. If you want to drive traffic to a website or generate leads, this presents a great bidding option.

Cost-per-impression (CPM) ads are the second bidding option. With these, you spend money each time your ad generates 1000 impressions. An impression means that someone has seen your ad, but not necessarily interacted with it. This bidding option typically appeals to companies who want to increase brand awareness.

The final bidding option, cost-per-send (CPS) applies only to those engaged with Sponsored InMail. When you bid CPS, you set the maximum price you will pay for every user that receives your Sponsored InMail advertisement. Since this lands advertising directly in a user’s mailbox, it works best for companies who wish to target specific users with a product or service.

How Do LinkedIn Ads Compare to Other Platforms?

Put simply, LinkedIn Ads cost more than advertising on other platforms. For example, one study showed that the median CPC for Facebook Ads comes in at $0.97. The same study pinned LinkedIn at $5.26 CPC. Though this represents nearly a 10x multiplier, however, the leads found through LinkedIn tend to generate much more value. 

In addition to higher-quality leads and a better ROI, Linkedin converts at an astonishingly high rate compared to competitors. A recent Hubspot study showed, LinkedIn site visitors’ conversion rate is 277% higher than other competitors. If you operate in B2B sales or an industry that targets high-value professionals, these lucrative, quality conversions are exactly what you want. 

As for Google Ads, LinkedIn again proves its superiority for more targeted, niche marketing. In terms of costs, Google Ads cost between $1 and $2. However, this price can increase a great deal if you need to compete for popular keywords. Google Ads is also best utilized for intent-driven searches. This means that it delivers ads to users who search for a specific thing. 

LinkedIn, on the other hand, can catch people before they have shown intent. In other words, with LinkedIn, you can target potential consumers before they know they need your services or products. Since you establish audience criteria as part of your campaign, you benefit from refined targeting that exposes your business to entirely new markets.

Though LinkedIn Ads cost more than other outlets, they stand out on the strength of their audience. Furthermore, LinkedIn’s unrivaled options for specific targeting make each of its ad formats highly effective investments. No one wants to feel as if their advertising budget has gone to waste. If you know your market and are willing to spend some money, LinkedIn Ads will not disappoint!