Should we advertise on LinkedIn?
There are two things to consider.
CLV, or your customer lifetime value: if it’s below $10-$15K, you’re going to have a tough time making a return on LinkedIn.
A lot of companies get this. It’s a good rule of thumb that’s easy to follow. LinkedIn isn’t expensive – it’s just it doesn’t make sense to run ads if a client doesn’t generate enough revenue.
This is partly because of thing #2: LinkedIn is a non-intent channel. If you’re going to advertise for direct conversions to a cold audience (ie: sign up for a trial, demo etc.) »»» you’re going to have a tough time making a return.
Leads (turning out to be of crap quality) will end up costing 50-100 dollars… which wouldn’t be a problem if the converted later, but they don’t.
So how should you advertise on Li if you want to see a return? Use it to educate the market – to generate demand. In other words,
1. advertise kick-ass content, then
2. retarget those who engaged
If you know the rules of the game, LinkedIn ads is a goldmine for the right company.