LinkedIn Ads for SaaS

Last Updated on: 28th August 2024, 08:20 am

LinkedIn is where you’ll find decision-makers, influencers, and tech-savvy leaders who hold the keys to SaaS success. However, LinkedIn Ads can also be one of the most expensive PPC options. 

The platform is known for its high cost-per-click (CPC) compared to other platforms like Facebook or Google Ads. On LinkedIn, you might see CPCs ranging from $5 to $10 or even more, depending on your industry and how specific your targeting is. 

But remember, those clicks are from decision-makers and business professionals who are genuinely ready to engage with your SaaS business, making every penny well spent.

In this guide, I’ll walk you through how to use LinkedIn Ads for SaaS, covering everything from the basics to advanced strategies like retargeting. By the end, you’ll know how to get the most out of your ad spend. 

So let’s dive in!

Why LinkedIn Ads Are Crucial for SaaS

In SaaS, where customer acquisition is everything, LinkedIn Ads give you a direct line to your target audience – no matter if you’re looking to generate leads, boost brand awareness, or drive conversions. 

The platform is designed for B2B marketing, making it an ideal match for SaaS companies that need to reach decision-makers to demonstrate their software’s value.

All in all, you’re paying for the privilege of targeting some of the most sought-after professionals. That’s why it’s essential to understand the costs involved and how to optimise your campaigns for maximum ROI.

Key Factors That Affect Your LinkedIn Ads Costs

Bidding Types and Amounts

Your bidding strategy is a major player in determining your LinkedIn Ads costs. Whether you go for CPC, Cost Per Thousand Impressions (CPM), or Cost Per Send (CPS) with Sponsored InMail, your choice should align with your campaign goals. 

Want more clicks, impressions, or direct engagement? LinkedIn’s got a bidding option for that.

Pro tip: Don’t be afraid to test out different bidding strategies to see what clicks best with your SaaS audience. LinkedIn even offers forecasting tools to help you peek into potential outcomes based on your bids.

Audience Targeting with LinkedIn Ads for SaaS

Your audience is the core of your LinkedIn Ads strategy. The more finely you tune your targeting, the higher the cost – but also the bigger the payoff. 

If you’re aiming at top-tier decision-makers in large enterprises, expect to spend more. But this laser-focused targeting means your ads are landing in front of the people who are most likely to convert.

Ad Relevance Score

Just like Google Ads, LinkedIn Ads assigns an Ad Relevance Score based on how well your ad resonates with your target audience. Their parameters include factors like click-through rate, comments, likes, and shares. A higher score means lower costs, as LinkedIn rewards ads that generate engagement. 

Want to increase your LinkedIn Ad Relevance score? Make sure your ad copy is polished and emphasises why you’re different, all the while directly addressing your audience’s needs and pain points.

Campaign Objectives

What you aim to achieve with your campaign will influence the cost. If you’re going for high-value leads, be prepared to pay more per click or impression compared to a campaign that’s simply about spreading the word. 

However, the investment is worth it if it leads to conversions.

Ad Formats

Choosing the right ad format can make a world of difference in your campaign’s performance. 

Sponsored Content, for example, usually generates higher engagement, which could lower costs in the long run. This usually happens because it appears directly in the LinkedIn feed, blending in with the organic content users already consume. This makes it less intrusive and more likely to catch the eye. The result is, of course, better interaction and engagement with your ad.

On the other hand, Text Ads might not grab as much attention but can be a cost-effective option, especially for retargeting campaigns where you just need a little nudge to reel them back in.

Want to know more about every single ad format available on LinkedIn? Head over to my Definitive Guide to LinkedIn Ads! 

How to Optimise LinkedIn Ads for SaaS

Fine-Tuning Your LinkedIn Ads Targeting for SaaS

The key to successful LinkedIn Ads is precise targeting. 

Start by defining your Ideal Customer Profile (ICP). Look at your most profitable accounts and analyse their characteristics – industry, company size, job titles, and more. 

However, the ICP is just the starting point. In SaaS, you should also develop buyer personas to complement your ICP. 

The ICP helps you identify the type of companies you want to target, but buyer personas take it a step further by digging into the specific individuals within those companies – like decision-makers, end-users, and influencers.

Then, use this data to create targeted ad campaigns that speak to your ideal prospects. If you’re dealing with complex sales or buying committees (multiple stakeholders have to be involved in the sale), you can even use LinkedIn Ads for account-based marketing. 

Creating Engaging Ad Content for SaaS LinkedIn Ads 

For SaaS, attention-grabbing ad content often means highlighting the specific problems your software solves. Use clear, compelling language that resonates with your audience. Don’t shy away from using visuals like infographics or short videos to make your ads stand out in the LinkedIn feed.

Take a look at the following ad example:

This ad is crafted for tech-savvy folks, like IT managers, cybersecurity professionals, and all-important decision-makers who oversee data protection in large companies. 

If you’re the person responsible for keeping your company’s data locked down and safe from ransomware, this ad is for you. 

The ad says, “We’ve got everything you need, all in one place. No need to look elsewhere.” This is exactly what a busy IT pro wants to hear. They don’t want more tools – they want better tools.

As for the CTA, offering a free trial is a great way to let the potential customer experience the product’s benefits with no commitment upfront. 

The Importance of Retargeting in LinkedIn Ads for SaaS

If someone has interacted with your brand – whether through a website visit, previous ad, or LinkedIn engagement – retargeting allows you to keep your brand top of mind.

In SaaS, the buying process can be incredibly long, averaging 84 days. Decision-makers often need multiple touchpoints before they’re ready to commit. Every single one of those touchpoints is a chance to delight, but it’s also a chance to lose their attention. 

The good news is, you can shorten that cycle with retargeting. It ensures your SaaS product stays in front of potential customers throughout their journey, even if they’ve already gotten in touch. 

LinkedIn gives you a plethora of ways to retarget and reel back in those potential customers:

• Website retargeting lets you reconnect with LinkedIn users who’ve visited specific pages on your site.
• Video retargeting helps you reach out to those who’ve watched your LinkedIn video ads.
• Engagement retargeting allows you to retarget users who’ve engaged with your LinkedIn posts or ads.
• Account-based retargeting focuses on key decision-makers within specific companies.

By keeping the conversation going with people who’ve already shown interest in what you’re offering, retargeting can give your conversions a boost.

Setting a Budget: Why $300-$600 Per Month for Retargeting Makes Sense

When it comes to retargeting, I recommend setting aside a budget of $300 to $600 per month. 

With retargeting, your goal is to remain visible and relevant without going overboard on spending. With just $10 to $20 a day, you can run retargeting campaigns that keep your brand front and centre for those who matter most. 

This budget sweet spot helps you tweak your ads based on how people are engaging with them so that you’re squeezing the best return on every dollar spent.

In SaaS, where the sales cycle can be a marathon, you need this investment. Retargeting helps you nurture leads down the funnel, keeping your SaaS solution top of mind for the prospects – until they’re ready to buy. 

The Verdict: LinkedIn Ads Are Definitely Worth It for SaaS

Yes, LinkedIn Ads come with a price tag, but for SaaS companies, they’re well worth the investment. With the right targeting, engaging content, and smart retargeting strategies, you can make every dollar count. 

As I always say, you’re not aiming for the click alone, but the conversion that follows. 

So, if you’re ready to see real results from your LinkedIn Ads, consider setting up a retargeting campaign with a budget of $300 to $600 per month. It’s a small price to pay for staying in front of your most valuable prospects and driving them toward conversion.

If you need help crafting LinkedIn Ads that deliver, I’m here to assist. With over 15 years of PPC experience, I’ve guided thousands of my clients to success. 

Why not join them? Get in touch with me and let’s make LinkedIn Ads work for your SaaS business!