LinkedIn is one of the most popular social media platforms in the world. It has become an essential tool for professionals to network and find new opportunities. And, as LinkedIn becomes more popular, businesses are looking for effective ways to advertise on this platform.
In this blog post, we will discuss five key performance indicators (KPIs) that can help you analyze your advertising effectiveness on LinkedIn. We will also provide tips on how to measure each KPI and how to optimize your strategy accordingly.
So what are you waiting for? Let’s get started!
Why Linkedin Ads?
With over 810 million active users from over 200 countries, LinkedIn has grown into the world’s largest professional network. It has grown into a one-of-its-kind platform for locating your target audience and a great place to connect with professionals across industries and geographies.
Over 65% of marketers use LinkedIn ads to get to their customers. All of this is possible through the LinkedIn Campaign Manager. LinkedIn Campaign Manager is an all-in-one platform that allows you to run ads using multiple media like text, image, video, blog, carousel, etc.
For B2B marketers, LinkedIn has become the platform of choice with 80% of them putting out paid content on the same.
More than 80% of business decision-makers spend time on LinkedIn.
It is a gold mine to:
- Communicate your brand message
- Educate your audience on the problems you are solving
- Promote your product or service
- Network with market leaders
Marketers can also define objectives for their ads. These objectives could include:
- Lead Generation
- Website Visits
- Website Conversions
To justify the cost of your LinkedIn Ads, you need to track key performance indicators (KPIs). Tracking these KPIs can help you prove the return on investment (ROI) for your marketing strategy.
To prove ROI, track ad performance with the following important LinkedIn KPIs. Tracking these KPIs can make your marketing strategy more effective. These KPIs can justify your goals and objectives.
Here are the Top LinkedIn KPIs to measure your ad performance.
1. Campaign Engagement
Campaign engagement is the count of all engagement activities on your ad campaign. This performance metric considers all audience interactions, including likes, comments, shares, reactions, and, of course, clicks. If all of your interaction is positive, naturally, it boosts your brand’s reputation and strengthens your relationship with customers.
Engagement helps your content to reach a larger audience. A high level of engagement means people are connecting with your content because it provides them with value in some way. There are a number of ways to create and deliver valuable content, but there’s no one right answer for every business or situation. The most important thing is to brainstorm different ways to provide value and then test which approaches work best for your brand or project. Try different combinations and see what produces the greatest results for you and your audience! Increasing engagement should not only focus on audience interactions, but also on initiating conversations. Conversations can help you connect with your audience and learn what they think about your brand or content.
2. CTR (Click-through Rate)
This KPI is the most effective way to determine whether your marketing activity is a success or a failure.
CTR = (Number of clicks/number of views)*100
It is the number of clicks your ad post receives. Higher clicks mean more people are responding to your ad. It is one of the most popular metrics of LinkedIn Campaign Manager.
The main objective for any LinkedIn marketing ad campaign is to get clicks from the audience. The purpose of generating more clicks is to make the user land on the intended web page. That web page can be a form fill, blog, website, landing page, or event registration form. Alongside, clicks present you with opportunities to convert a user into a lead or a customer who lands on your website page.
Moreover, companies can compare the CTR results with organic results and see which one fares better.
Here some additional steps to improve your CTR rates:
- Research trending posts
- Evaluate the timing of post-publication
- Work on creating a compelling landing page
- Aim at getting more clicks
To get more clicks, make sure your ad is compelling enough for viewers to take action.
3. ROAS (Return on advertising spend)
Return on advertising spend (ROAS) is a metric that determines the efficacy of your marketing campaign. It is the ratio of the revenue earned per unit of money spent on advertising.
Simply put, it is the return you get per dollar of your investment on ads. ROAS helps us understand whether the money spent was worth it after comparing the engagement rate, CTR percentage, visitor rate, etc. It also includes your CPC (cost per click), CPM (cost per thousand impressions), and the bid amount. Track these KPIs to understand which ad type is performing the best for you and to make strategic judgments while designing future ads.
ROAS = revenue/advertisement costs
4. Follower’s Demographic
This is a crucial metric to consider while running any ad campaign. The followers’ demographic tells you who all have become your followers and where they are coming from. You can determine followers’ demographics on the basis of seniority, industry, company size, function, location, gender, and so on.
Tracking your followers can help you gauge whether you are connecting with the right people.
It is very important to understand the demographics of your followers because it tells you a lot about what kind of audience is engaging with your content. If your target audience is not your followers then you might need to reconsider and focus on revamping your entire ad communication to target the correct audience.
5. Video Completions
A video completion metric means how many times an ad video plays till the end.
It shows how many people watched your ad video from start to finish. This metric is divided into sections to assist marketers in determining which part of the video received the most attention. For example, 25% complete, 50% complete, 75% complete, and 100% complete.
Basically, it can serve as a good metric to help marketers or advertisers understand the quality of their video and how people are interacting with it at each level.
Tracking your metrics is critical for meeting the goals of your LinkedIn ads. If you’re not monitoring these metrics, you would not know how effective or ineffective each campaign is at generating traffic.
Moreover, for start-ups, becoming active and engaging on LinkedIn can help them get noticed by future investors. You may also start building relationships with prospective customers, who might eventually buy your products or services after hearing about your story through LinkedIn ads.
How INSIA Can Help
While LinkedIn Campaign Manager gives you a general picture about your data through KPIs such as impressions, reach and engagement metrics, it is limited in what it can do for you. Optimize your LinkedIn marketing strategy by integrating it with INSIA’s advanced AI-powered, self-serve analytics software. Create and customize unlimited dashboards that are suited to your needs. A robust business intelligence tool like INSIA can help your small business grow to its full potential. INSIA is designed for non-technical business users that integrates your data from multiple sources (like Facebook, Instagram, LinkedIn, Excel, MySQL, and many more) and lets you create visually appealing reports through a Google-like search bar. Connect to INSIA in a couple of clicks and monitor your business performance & the ROI on your marketing decisions with pre-built plug-n-play KPIs and automated dashboards. Click Here for a free trial!