April 16, 2019
Boost Ecommerce Growth With New Pinterest & Instagram Advertising Features
B2B advertisers often lean heavily on LinkedIn Ads, holding it as the gold standard for quality lead generation. While I have definitely had success with LinkedIn’s robust and effective targeting, Facebook can be an underrated tool for driving B2B leads. Despite commonly lower qualification rates using Facebook Ads, we often also see lower front-end CPAs.
To truly comprehend the value of Facebook vs. LinkedIn for a B2B advertiser, it’s crucial to analyze CRM data to understand just how the relationship between qualification rates and cost compares on the back-end.
“We’ve been told that lead quality is better on LinkedIn, though.”
“But Facebook doesn’t have the same company and job experience targeting options.”
“Even if we’re getting in front of relevant traffic on Facebook, those users probably aren’t in the right mindset to be served one of our ads.”
The list goes on. While these statements may be valid stand-alone concerns to some degree, Facebook provides additional benefits that can balance out these concerns.
Let’s look at an example: Advertiser A. This is an advertiser that understands the value of both channels, but invests at a higher rate in LinkedIn Ads because the targeting options align more closely with their qualification requirements (i.e. company size, user seniority level).
An analysis of Salesforce leads shows that LinkedIn does in fact produce a qualification rate 2X that of Facebook – not a surprise there. The story changes, however, when we evaluate how cost effective those quality leads are.
Front-end CPMs on Facebook for this advertiser were 73% less expensive than on LinkedIn during the time period analyzed. This massive cost saving per front-end lead on Facebook directly correlates to cost savings on the back-end as well.
In summary, LinkedIn drives high quality leads, but those leads can come at a premium, which sometimes outpaces the targeting capabilities.
For advertisers focused on driving the most cost-effective quality leads, Facebook should certainly be part of your paid media strategy. These results may not apply for every advertiser out there, but it’s absolutely something you should be testing. Contact us if you’re interested in learning more.