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LinkedIn Ads Strategy: Custom vs. Generic – Which Drives Higher Returns?

LinkedIn Ads Strategy: Custom vs. Generic – Which Drives Higher Returns? - KNKV Group

Do you know how powerful personalization is for businesses’ LinkedIn ads strategy today? According to McKinsey’s, most people (71%) want companies to give them personalized experiences.

When this doesn’t happen, 76% of them feel frustrated.

Additionally, 70% of people are more likely to purchase from companies that understand how they use their products or services.

Due to this, businesses are constantly seeking ways to stand out, connect better, and meet audience expectations.

In this article, we’ll explore the reasons why custom ads are more effective, backed by data and practical tips to help you optimize your LinkedIn ads strategy today:

Customization: Why is it very important?

LinkedIn Ads Strategy: Custom vs. Generic – Which Drives Higher Returns? - KNKV Group

Customization is becoming increasingly important for businesses across all industries. Why is that? Well, customization allows customers to find products or services that match their personal preferences.

Not only does it improve their experience, it also leads to higher engagement and lower ad fatigue.

You don’t want your audience to get bored by what you offer.

When businesses take the time to understand their customers’ needs, it creates a strong emotional bond between the brand and the customer, making them more likely to purchase.

This approach enhances relevance, as tailored ads align more closely with the specific interests and needs of different audiences. 

Plus, custom ads typically lead to higher conversion rates, resulting in better performance metrics, such as clicks and conversions.

Here are some other key statistics that highlight its importance:

  • 76% of consumers are more likely to buy from brands that give them personalized experiences (McKinsey), and 60% say they’re more likely to return as repeat customers after a personalized shopping experience (Twilio Segment).
  • Consumers tend to spend 38% more when they experience personalization online (Adam Connell).
  • About 4 in 5 marketers report seeing positive results from using personalization in their campaigns (Adobe).

Ultimately, customization is a powerful way for businesses to meet their customers’ needs effectively. It not only enhances customer satisfaction but also fosters loyalty.

Key Elements of Tailored LinkedIn Ads

LinkedIn ads that are carefully tailored will help businesses connect with the right audience. According to LinkedIn itself, LinkedIn ads are effective because

  • 4 out of 5 members make business decisions.
  • LinkedIn users have twice the buying power compared to regular web users.
  • LinkedIn audiences are six times more likely to make a purchase.

For tailored LinkedIn ads, here are some crucial and essential elements:

  • Audience Segmentation: Utilize LinkedIn’s targeting options to identify specific demographics, industries, and job functions. Divide your target market into smaller groups to reach the right people.
  • Compelling Messaging: Craft messages that resonate with the unique pain points and interests of your audience to spark their interest and help you stand out. Ensure clear messaging that is short, easy to understand, and consistent across platforms.
  • Visual Appeal: Make your visuals pop! Stay true to your brand while creating designs that actually speak to your audience. Use crisp, high-quality images (WebP for faster loading online), and let your brand shine with every scroll.
  • Data-Driven Optimization: Make use of LinkedIn’s analytics to track key performance indicators (KPIs) such as:
    • Click-through rate (CTR)

    • Conversion rates

    • Engagement levels

    • Cost per lead (CPL)

Tailored vs. Generic LinkedIn Ads

FeatureTailored LinkedIn Ads (Personalized)Generic LinkedIn Ads (Broad Targeting)
TargetingUses LinkedIn’s targeting tools to match the right audienceOne-size-fits-all approach
MessagingCustom messaging speaks directly to audience needsLacks personalization
EngagementHigher engagement and conversion ratesLower engagement and click-through rates
Ad Spend EfficiencyReduces wasted ad spend by focusing on relevant usersHigher ad spend with lower return on investment (ROI)

Let’s talk about something really important in marketing. You see from the table that the main thing that sets them apart is how well they are designed to meet the needs of their target audience.

Tailored ads are like a customized outfit. They fit every individual perfectly because they’re designed with their preferences and behaviors in mind. This means they can resonate more with people.

For instance, if you’re a tech enthusiast, you might see ads for the latest gadgets that match your interests. Won’t it make you more likely to engage?

📊 A study by Adlucent found that 87% of consumers believe personalized ads feel more relevant and drive higher engagement.

On the other hand, generic ads are like off-the-rack clothing. They’re made for a broad audience and often don’t connect on a deeper level. They might promote a new product without considering whether it’s something you want or need.

Understanding these differences can change the game for your business.

Tailored ads can drive higher engagement and conversions because they speak directly to the consumer, while generic ads may not capture attention as effectively.

So, the next time you see an ad, think about whether it feels personal or just like everyone else.

Best Practices for Creating Custom LinkedIn Ads

When it comes to creating custom ads on LinkedIn, there are some best practices you’ll want to keep in mind to make the most out of your LinkedIn ads strategy.

Let’s break them down:

  • Use LinkedIn’s Advanced Targeting Tools: One of the great things about LinkedIn is its powerful targeting options called LinkedIn’s Matched Audiences. Take advantage of these features to hone in on your audience. You can target based on factors like industry, job title, location, and company sizes. This precision helps ensure that your ads reach the people who are most likely to be interested in what you’re offering.
  • A/B Testing: Have you ever wondered which ad performs better that also resonates with your audience the most? That’s where A/B testing comes in. It’s super important to test different variations of your ads—whether it’s the images, headlines, or calls to action. 
  • Use LinkedIn’s Dynamic and Conversation Ads

    • Dynamic Ads help to personalize ad content for each person who views your ad.

    • Conversation Ads drive engagement through the chats called ‘LinkedIn Messaging (InMail).’  It has higher conversion rates as people are more likely to engage.

  • Optimize Regularly: Take quick actions to make proper adjustments as needed. Keep an eye on metrics like click-through rates (CTR), conversions and CPL. If something isn’t working, don’t hesitate to tweak.

Create LinkedIn Ads with Us

To sum it up, the choice between custom and generic LinkedIn ads is simple: personalization matters. When you know your audience and craft your messages to fit their needs, you create ads that grab attention and lead to real engagement and conversions.

However, if you feel that this sounds complicated, don’t worry about making tailored ads, because we’ve got you covered! 

Want to reach the right audience with the right LinkedIn ads strategy? Click here to book our LinkedIn ads service.

 

KNKV Group – Redefining Creativity and Excellence.

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KNKV Group is dedicated to helping businesses of all sizes achieve their full potential through effective marketing and advertising campaigns, making them a trusted partner for clients looking to enhance their brand presence and achieve their business goals.

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