B2B Ads: Why Facebook Is Better Than LinkedIn


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Most business owners, if asked to guess on the street, would say that LinkedIn is better than Facebook for B2B advertising.

I felt the same way years ago, until I empirically tested large volumes of ad spend in each channel and discussed the results with fellow acquisition professionals.

Here’s what some of them had to say.

Antony McGregor Day, cCommerce CMO

“Wow, glad it’s not only me who’s very unsatisfied with LinkedIn’s price and performance compared to Facebook and AdWords. 

After giving LinkedIn several tries, I’ve practically given up. At a $5 CPC and a far lower lead/conversion rate than Facebook, it’s just not worth my time.”

William Wong, Mission Street

“For the majority of companies I’ve worked with, FB outperforms LNKD in aggregate. However, there are times LNKD works when FB does not.”

I got a few other responses from marketers who would prefer to keep their details private. But everyone who responded ended up with the same conclusion; Facebook does better than LinkedIn. But why?

Reason 1: Active Users

facebook logolinkedin logo

 

 

 

 

 

 

FACEBOOK

  • 210 million American users login at least once a month
  • 180 million American users login at least once a day

LINKEDIN

  • 30 million American users login at least once a month
  • LinkedIn does not release daily user data

So not only does Facebook have 7x the number of active monthly users, it probably has closer to 20x the number of daily users, since anecdotally people check Facebook a lot more than LinkedIn. Also, I would bet that a good portion of those people checking LinkedIn are looking for new jobs, and thus not particularly interested in buying whatever you’re selling.

Reason 2: It’s not just about who your target is. It’s what they do with ads.

So we’ve established that Facebook has TONS more ad click data to work from. I think this gives a second advantage; their algorithms to find the rare clicking/converting users have just been trained that much better than LinkedIn’s. The evidence for this is how much higher a CTR your FB newsfeed ads will have over your LinkedIn newsfeed ads for campaigns with similar goals and products.

Reason 3: Popular perception has not yet caught up to reality.

Non-direct marketers and other marketers that don’t care about CPA still think of LinkedIn first when it comes to B2B. Thus, CPC is inflated for B2B relative to similar audiences on Facebook.

That’s it. Reach out to me if you have a different experience with LinkedIn vs Facebook!

About Kevin Barry

Kevin has scaled large scale online acquisition campaigns from scratch for 7+ years in finance, jewelry, apparel, and more. At OnDeck, he developed all of their paid digital channels (Adwords, Facebook, more) from one of their first major venture rounds to post IPO with multi-million dollar budgets. He has a broad working understanding of all aspects of online marketing, cutting edge understanding in certain areas like Facebook, a decent technical skillset (From SQL to Excel and much in between), and a history of entrepreneurship and getting things done. View all posts by Kevin Barry Web site →
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One Response to B2B Ads: Why Facebook Is Better Than LinkedIn

  1. Suzy says:

    Great post Kevin! Point 2 is especially salient in my experience.

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