Every B2B marketer is in love with LinkedIn’s segmentation features but knows very well how much it costs to build a high-quality audience on this platform. LinkedIn advertising is magnificent segmentation-wise, but extremely expensive if setup incorrectly. The planned sunset of Lookalike Audiences for the end of February this year, marks a milestone in how segmentation should be defined on the platform. The rise of predictive AI powered tools with 'Predictive Audiences’, will change the way marketers target audiences. Today, we unravel the intricacies of this evolution and its implications for B2B marketers grappling with segmentation challenges in the vast and volatile digital terrain.
The Evolution: Saying Farewell to Lookalike Audiences
As of February 29, 2024, LinkedIn is bidding adieu to ‘Lookalike Audiences’ in its Campaign Manager. This evolution paves the way for a more sophisticated and powerful tool – ‘Predictive Audiences’, powered by LinkedIn's cutting-edge predictive AI.
This shift is more than just a name change; it's a leap forward in refining audience targeting and, ultimately, driving campaign efficiency and results. Unlike the traditional ‘lookalike’ approach, predictive audiences go beyond mere resemblance, identifying individuals with a genuine propensity to convert.
LinkedIn's Predictive Audiences Unveiled
In an insightful LinkedIn article, the platform outlines how predictive audiences are revolutionising B2B targeting. With buying groups growing larger, demand for personalisation rising, and marketing budgets tightening, predictive audiences emerge as a solution that amplifies first-party data and breaks down barriers to reaching a high-intent audience at scale.
Are Predictive Audiences Reliable?
Predictive audiences employ probabilistic audience targeting, leveraging vast amounts of data. LinkedIn's AI combines engagements observed on the platform with your first-party data to construct and optimise a high-intent audience aligned with your campaign objectives. Google Ads is doing the same, they removed lookalike segmentation in August 2023. The distinguishing factor is the inclusion of machine learning signals and predictive AI modelling, going beyond the conventional ‘lookalike’ method.
Benefits of Embracing Predictive Audiences
1. Identifying Your Audience at Scale
In a complex B2B buying landscape, ‘Predictive Audiences’ leverage LinkedIn's AI and your data to create tailored, high-intent audience segments. Say goodbye to the challenge of identifying the right customers – this tool does it for you.
2. Optimising Campaign Efficiency
Finding the optimal audience usually demands substantial time and resources. Predictive audiences streamline this process, ensuring your resources are efficiently utilised, even under budget and time constraints.
3. Maximising ROI
The 95-5 Rule suggests that only a small percentage of your prospective audience is actively in the market at any given time. Predictive audiences focus on bottom-funnel efforts, driving higher-intent leads, resulting in better ROI and reduced wastage.
LinkedIn’s Recommendation for Implementing Predictive Audiences
LinkedIn highlights the importance of defining your base audience and understanding what qualifies them before activating any campaign.
- Identify Customer Models: Start with audiences resembling your existing customers, using your CRM data or engagement with customer-specific content.
- Harness Audience Insights: Refine your targeting strategy based on the insights provided.
- Optimise Audience Size: Test different audience sizes to find the right balance between reach and precision.
- Objective and Metrics:
- Consider Lead Gen Objective: Align with the lead generation objective to enhance campaign performance.
- Monitor Performance Metrics: Regularly assess key performance indicators (KPIs) and adjust strategies based on data-driven insights.
Fileroom’s Tips and Best Practices for Predictive Audiences
We can't leave you without the golden key to unlock its true potential – an aspect often overlooked in the excitement of new AI strategies: your event tracking system. Think of it as the unsung hero, the guardian of the gateway to effective machine learning.
The cornerstone to ensuring that ‘Predictive Audiences’, and any other predictive tool in your data-verse, works harmoniously for your business lies in having a robust tracking system. Without the right measurements and essential touchpoints, it's like expecting a magician to pull a rabbit out of a hat without the hat.
So, let's get back to basics: Are you truly confident in your event tracking systems? If there's even a hint of doubt, don't hesitate – that's where we come in. Give us a call and let us check the strength of your digital foundations. Whether you need a pat on the back for a strong setup or a tweak here and there, Fileroom is here to ensure your digital pillars stand tall and strong in the ever-evolving landscape of predictive marketing. Your success is our priority, and with the right tracking, your Predictive Audiences can truly become the magical wand your campaigns deserve.