How to determine your monthly LinkedIn Ads budget?
One of the most common questions asked by our clients and our webinar attendees is “What is the minimum monthly investment for LinkedIn ads?”
The answer isn’t generic for every B2B business. It depends on the business goals, i.e., the number of clients that the business would be interested in acquiring in a month.
Take a closer look at this quick visual representation below.
Let’s assume that your business goal is to land 5 B2B customers in a month. If your business has a conversion rate of 20%, the sales team’s goal should be to speak with at least 25 prospects in a month. If the sales team has a well-organised sales strategy, a 20% conversion rate is highly achievable.
To speak with 25 prospects, the business needs at least 500 website visitors or leads assuming a 5% conversion rate. If the marketing strategy and the audience persona are well identified, 5% lead conversion is not a difficult target to achieve.
500 website visitors mean that there are 500 people who clicked the link on the ad. Typically, advertisers on LinkedIn pay an average price of $5.26 for every click. So, a business that needs 5 customers may pay around $2,630 per month on ads. This number may look high, but assuming the lifetime value (LTV) of the customer, the ROI on LinkedIn ads is always high.
Do you have any more questions on LinkedIn ads budget? Please comment below, we will answer your questions.
If you’d like to talk to our support team, please visit https://calendly.com/brandupwise/strategy-consultation