Join Brad Batesole for an in-depth discussion in this video Revisit bid and budget, part of Up and Running with LinkedIn Sponsored Content.
- [Voiceover] I want to quickly touch on bid strategies and budget allocation for campaigns. As we've discussed, sponsored content can be used for a variety of marketing initiatives, ranging from top of funnel to bottom of funnel. It's important to have campaigns that drive brand awareness to move people into the marketing funnel. But it can be challenging, when you're starting out, to decide how to split your budget. So, a good starting point is to aim for a 70/30 split, where 70% of your budget goes towards the bottom of funnel conversions.
When you're starting out, this can help validate your campaigns, and it reinforces your ability to increase your overall budgets. Now, this allocation is going to vary depending on what your company's marketing goals are. So, you may start adjusting your split to be 80/20 or even 60/40, as you review those metrics. But 70/30 is a great starting point. It's also important that you don't start with too small of a budget, and fail to give your campaigns a fighting chance. Allocate enough money to reach a large enough audience in your first two weeks, so you can really evaluate performance.
From there, you can adjust your allocation up or down, based on what you see. Consider that first week's money spent on education. You need a better picture of the landscape and the best way to get that is to capture real data by spending on your campaigns. As you move into bid strategies, I'll leave you with a few tips. First, if you aren't winning enough elections, consider increasing your bid. Sponsored content works on a second price auction basis.
So, this means to get your ads seen in member's feeds, you bid for placement in a marketplace. This auction model means that if you placed the winning bid, you only paid as much as the second highest bidder. Now, bids aren't the only way to win at auction. LinkedIn automatically rewards marketers who regularly post content that earns lots of clicks, likes, comments, and shares. So, another great approach is to pause any ads that aren't delivering the desired results. Be sure to have alternate versions that you can swap into rotation, as needed.
This really allows you to move your budget into higher performing content. From there, think about the goal of the ad. Driving leads or content downloads? Start by bidding on a cost per click basis, so you're only paying when someone takes an action with your update. If you're focused on thought leadership and branding, well, views might be more important than clicks, so explore CPM bidding. Another great approach is to start strong out of the gate by bidding at the high end of the recommended range. Remember, in a second price auction, as the winner, you're only paying as much as the second place bidder.
Finally, if you see that your campaign is exhausting its budget too quickly, try adjusting it to moderate your spend. Keep an eye on your metrics and your spend, and fine-tune based on your business objectives. Eventually, you'll develop a strategy that is unique to you and your business.
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