When it comes to professional networking, LinkedIn is one big platform where careers meet connections. Over 950 million members (and potential prospects) hang out here daily - engaging, sharing insights, and looking for the next big thing. In such a competitive landscape, LinkedIn ads are a game-changer to help your brand reach its intended audience.
They help professionals discover services, explore hirings, and connect with those who matter the most to their business objectives. But running ads is just half the story; you need to ensure they resonate well with your audience. That's where LinkedIn Ads KPIs come into play.
These metrics help decode your advertising strategy and tell you how your campaigns perform. Such details enable you to tweak your ads over time for maximum value and minimum cost per click. So, which LinkedIn KPIs should you track? And what are they all about? We have all the answers. Just read on to learn everything you need to know about LinkedIn KPIs.
LinkedIn is a unique platform that connects professionals and executives, making it a go-to for B2B marketing. The platform has an in-built advertising feature to help get your brand across, known as LinkedIn Ads. These ads are known for generating high-quality leads with a solid return on investment (ROI) through Sponsored Content, Job Ads, InMail, or Display Ads.
However, LinkedIn Ads need to be adjusted and tweaked over time to yield the maximum return. This is where LinkedIn Ads KPIs help. They are essential metrics that businesses use to gauge the effectiveness of their marketing efforts on LinkedIn. In simpler terms, LinkedIn KPIs are measurable values that reflect how well a company achieves its goals through LinkedIn advertising.
It is crucial to choose the right LinkedIn Ads KPIs to track to put your brand in the spotlight. You not only need to decode reporting metrics but also understand what they stand for. For example, if your brand receives more mentions and engagement (likes, comments, and shares), your brand visibility works out in your favor. This is the right time for launching new products or introducing subscriptions.
On the contrary, if your follower count is growing and your article shares surge, your audience considers your brand a thought leader in the industry. Essentially, you should determine your marketing objectives before measuring Ads KPIs.
Do you wish to build brand awareness or increase consideration? Or is your focus on driving leads and conversions? Based on what you aim to achieve, here are some LinkedIn Ads KPIs you should track in your digital marketing strategy:
By knowing their significance, you will not only enhance your reporting but also gain actionable insights. Over time, these will help you refine and elevate your LinkedIn advertising strategy.
Click-through rate (CTR) is a crucial LinkedIn KPI for tracking how successful your LinkedIn Ads are. It measures the engagement level of your audience with your ads. In essence, the click-through rate is the percentage of individuals who not only viewed your ad but also clicked on it. A high CTR indicates that your ads are relevant to the target audience. This means that your choice of keywords and targeting data is on point.
To calculate your campaign's CTR, divide the number of clicks by the number of impressions and multiply the result by 100. For example, if your ad receives 5 clicks from 1000 impressions, your CTR would be 0.5%. But what is a good CTR for LinkedIn ads, and how much should you expect? Globally, the LinkedIn average rate CTR range falls between 0.39% to 0.65%. It serves as a baseline for advertisers to access the performance of their ad campaigns.
For those running multiple ad campaigns, tracking the average CTR across campaigns is important. It lets advertisers conclude which campaigns outperform others, providing critical insights for refining and optimizing future strategies. Thus, understanding the CTR rates across campaigns helps in making data-driven decisions to allocate resources the right way.
When it comes to LinkedIn advertising, tracking impressions is crucial since it dictates how many people on the platform are actively watching your ad. It is especially important for LinkedIn brand awareness campaigns aiming to build a loyal clientele. The more impressions you have, the more people see your content. It increases the likelihood of individuals remembering your brand and interacting with it in the future. But what do impressions mean on LinkedIn?
Well, impressions signify the number of times your ad has been displayed to LinkedIn users. It quantitatively measures the visibility of your ads and reflects their exposure to the audience. However, it is crucial to note that while impressions tell how many people are watching your ad, they don’t dictate its performance or effectiveness.
If your ads aren’t getting many impressions, here’s how you can optimize them:
Tracking conversions is a pivotal LinkedIn Ads KPI that shows the percentage of people who took the desired action after seeing your ad. This could range from filling out a form or purchasing to signing up for a demo or an event. This metric helps you determine how well your campaigns are performing.
Want to measure the conversion rate for your campaign? Simply divide the total number of conversions by the total links. A low conversion rate indicates that your ads are not resonating with your target audience. This could also mean that the landing page cannot captivate and convert. Thus, this KPI enables advertisers to pinpoint areas of improvement and make necessary adjustments.
So, what is considered a reasonable LinkedIn ads conversion rate, and how much should you aim for? Recent studies have indicated that LinkedIn, on average, has a conversion rate of approximately 2.74%. It means that only around three of 100 individuals who visit the site convert into leads.
The cost per conversion (CPC) is a measure that calculates the total cost incurred in acquiring a new customer divided by the actual number of customers gained. This KPI gives businesses a clear view of their expenditure versus the tangible returns in terms of customer acquisition.
Understanding the CPC is crucial for companies since it helps them determine the efficiency of their advertising campaigns. Primarily, it tells how much a business is investing to bring in new customers and whether this investment translates into a net profit. Thus, it helps them assess the cost-effectiveness of ad campaigns and take appropriate measures to lower it.
Here are a few tips to lower your CPC:
By following these tips, you can enhance the effectiveness of your LinkedIn Ads. They can also help businesses improve their Return on Investment (ROI). This is because they help lower the overall cost associated with customer acquisition.
As one of the most basic LinkedIn Ads KPIs, the engagement rate measures the success of your content by tracking how your audience interacts with it. It can be in various forms, including likes, shares, or comments. Such a rate provides a tangible method to gauge how people are communicating with your brand.
To get the most out of your ad campaigns, it is essential to time them well. The prime window for posting on LinkedIn is typically from Tuesdays through Thursdays. These days, they are believed to attract the highest visibility, ensuring your content reaches a broader audience and garners more attention.
In terms of benchmarks, a healthy engagement rate on LinkedIn hovers around 2%. However, depending on the nature and quality of your content, this figure can surge to 5 or even 6%. This benchmark is a helpful reference point, indicating whether your content resonates effectively with your intended audience.
Understanding and tracking LinkedIn Ads KPIs is the gateway to success on this professing networking platform. By keeping an eye on these metrics, like conversions and click-through rates, you get valuable insights. These can further be used to tweak your ad campaigns for maximum impact and conversions.
But think about it: isn’t manually extracting ad data from each of your LinkedIn campaigns a bit too consuming? It requires a complex understanding of data, which can take a big chunk of your time. But you don’t worry anymore as here Catchr comes to your rescue. It gives detailed digital marketing reports that provide thorough insights into your LinkedIn Ad strategies.
By effortlessly connecting your LinkedIn Pages data to Google Data Studio or Google Sheets, Catchr helps you analyze your marketing performance. No coding is required – it handles the authorization process and data transformation to ensure real-time data freshness. So don't wait anymore; use the digital marketing reports by Catchr to make data-driven decisions that steer your company to success.