Case Study: Reducing LinkedIn CPC by 55%
A marketplace platform faced escalating costs due to high CPC (Cost Per Click) on their LinkedIn advertising campaigns. Despite maintaining a healthy Click-Through Rate (CTR) above 1%, the CPC remained significantly high, impacting the overall advertising budget. The goal was to reduce CPC while maintaining or improving ad performance.
Challenges
High CPC – Disproportionately high costs for clicks despite a healthy CTR.
Budget Constraints – Escalating CPC strained the advertising budget, limiting campaign effectiveness.
Maintaining Performance – The challenge was to reduce CPC without compromising ad performance and engagement.
Strategy
The strategy aimed to shift bidding from click-based to impression-based for ads with a CTR over 1%. This move leveraged high engagement without directly paying for each click.
Identifying High-Performing Ads – Ads exceeding a 1% CTR were selected.
Shift to Impression-Based Bidding – High-CTR ads moved from CPC to impression-based bidding, paying for impressions instead of clicks.
Monitoring and Optimization – Continuous monitoring was vital. Over time, the CTR declined due to LinkedIn’s algorithm favoring impressions.
Performance-Based Adjustment – Ads near or below the 1% CTR were reassessed. Those with significant CTR drops shifted back to CPC bidding for optimal performance.
Results
Cost Reduction – Switching to impression-based bidding for high-CTR ads led to a 55% CPC reduction.
Optimized Budget Use – Lowered CPC extended the advertising budget, reaching a larger audience and improving campaign effectiveness.
Maintained Performance – Despite bidding changes, ads maintained initial performance by leveraging impressions while reducing costs.
Adaptive Strategy – Flexibility to switch back to CPC bidding for declining CTR ads ensured continuous optimization.
Let’s Get Started
Impression-based bidding for high-CTR ads effectively reduced CPC without compromising ad performance. Continuous monitoring and adaptability are crucial for sustaining benefits, given platforms like LinkedIn optimize campaigns. This case study highlights the significance of strategic bidding and adaptive campaign management in optimizing costs while maintaining engagement and performance.
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