Measuring Performance
Demand generation is a critical component of any successful marketing strategy. As a B2B demand generation manager, setting realistic expectations, accurately measuring performance, and continuously optimizing campaigns are essential. This guide provides a clear framework for implementing demand generation benchmarks across various channels.
Why Benchmarks Matter
Benchmarks help you set realistic goals, measure performance, and identify areas for improvement. They provide a standard against which you can compare your campaigns, ensuring you are on track to achieve your objectives.
Benchmarking Methodology
We analyzed data from over 30 B2B SaaS companies between January 1st and December 31st, 2023. The analysis covered $8.2 million in spend and 308 million impressions across Meta (Facebook & Instagram) and LinkedIn.
Channel Performance Benchmarks
Meta (Facebook & Instagram)
- CPM (Cost Per Thousand Impressions):
- Facebook: $4.00 (-35% YoY)
- Instagram: $5.00 (-20% YoY)
- CTR (Click-Through Rate):
- Facebook: 0.60% (+10% YoY)
- Instagram: 0.50% (+8% YoY)
Insight: Meta channels have seen a significant decrease in CPM, making them more cost-effective. CTR has increased, indicating better engagement.
- CPM (Cost Per Thousand Impressions):
- $50.00 (+48% YoY)
- CTR (Click-Through Rate):
- CTR: 0.53% (+5% YoY)
Insight: LinkedIn remains expensive but shows steady engagement, justifying its cost with high-quality leads.
Objective-Based Benchmarks
- Traffic Campaigns:
- CPM: $5.00
- CTR: 1.20%
- Engagement Campaigns:
- CPM: $10.00
- CTR: 0.80%
- Lead Generation Campaigns:
- CPM: $20.00
- CTR: 0.40%
- Reach and Awareness Campaigns:
- CPM: $8.00
- CTR: 0.30%
Insight: Traffic campaigns offer the best CTR, ideal for driving visits. Engagement campaigns are costlier but crucial for targeted conversions.
Placement-Based Benchmarks
Meta Placements
- Stories:
- CPM: $4.00
- CTR: 0.70%
- Reels:
- CPM: $12.00
- CTR: 0.40%
- Feed:
- CPM: $5.00
- CTR: 0.50%
Insight: Stories provide the best balance of cost and engagement. Reels are more expensive with lower engagement, suggesting a need for compelling content.
LinkedIn Placements
- Single Image Ads:
- CPM: $60.00
- CTR: 0.50%
- Video Ads:
- CPM: $70.00
- CTR: 0.60%
- Document Ads:
- CPM: $80.00
- CTR: 0.70%
Insight: Document Ads, though new and costly, show the highest engagement, making them ideal for in-depth content delivery.
Year-over-Year Trends
Meta:
- Cost Decrease: -35%
- CTR Increase: +10%
LinkedIn:
- Cost Increase: +48%
- CTR Increase: +5%
Emerging Ad Formats:
- Document Ads: High engagement potential
- Thought Leader Ads: Promising early data
Insight: The trend towards in-feed consumption is strong. Meta costs are decreasing, while LinkedIn costs are rising, indicating shifting advertiser preferences.
Actionable Milestones
Establish Internal Benchmarks:
- Regularly compare your performance against industry benchmarks.
- Identify areas for improvement and set incremental goals.
Continuous Improvement Strategies:
- Optimize ad creatives and placements based on performance data.
- Experiment with new ad formats like Document and Thought Leader Ads.
Utilize Benchmarks for Campaign Optimization:
- Use benchmarks to set realistic expectations and guide budget allocation.
- Continuously monitor and adjust campaigns for better performance.
Quick Reference Cheat Sheet
Key Metrics:
- CPM, CTR, Engagement Rate
Industry Averages:
- Meta: CPM $5, CTR 0.55%
- LinkedIn: CPM $65, CTR 0.53%
Best Practices:
- Diversify ad placements.
- Focus on in-feed consumption.
- Regularly update benchmarks.
___
Check out the Content Hub for more insights from Refine Labs.
