Hi there,
Really happy to give you some initial thoughts and guidance based on your question. I know it can be a right pain scaling customer acquisition, especially after a Series A. I'll try to give you some pointers based on our experience.
We'll need to look at ad platforms...
First off, you're spot on that organic and referrals won't cut it for scaling. You'll need paid ads to generate those qualified leads. The big question is: where's your ideal customer hanging out online? For an AI & ML data labeling service, you're targeting a pretty niche audience. You wanna find the companies that can really benefit from your data labeling.
I'd say LinkedIn is your best bet, innit? It can be pricey, but it has really precise B2B targeting options. You can target job titles like "Data Scientist", "Machine Learning Engineer", "Head of Data", or even "CTO" at companies in specific industries (like tech, finance, healthcare etc.). This way, you can pinpoint people who understand the value of properly labelled data and can afford your services. Plus, it's where decision-makers actually spend their time.
Don't totally rule out Google Ads. If companies are actively searching for data labeling services, you wanna be there. You can target relevant keywords like "AI data labeling service", "machine learning data annotation", etc. But LinkedIn usually works better for initial outreach in B2B, and Google Ads as a secondary channel. If you're gonna consider Google, use it only after you've done LinkedIn ads and your offer is mature.
I'd say you should focus on messaging...
On LinkedIn, content is crucial. But it needs to be good content that speaks directly to your target audience's pain points. We see a lot of clients struggling with mountains of unstructured data and not enough manpower or time to clean and label it. Some end up with poor model performance as a result. Or, even worse, compliance and regulatory nightmares. Hit these points hard and show exactly how your service solves those problems. Show that you can save them time, improve their model accuracy, and reduce their regulatory risks. Use a conversational tone and address concerns head-on. I've seen a lot of people try ads on LI and get crickets because the messaging wasn't right.
Video is your friend here. Short, punchy videos explaining the benefits of your service can work wonders. We've seen some SaaS clients have really great results with UGC videos - lots of angles to test there as well. Get someone to explain the problems data scientists face and how your solution magically erases these. Or an animated explainer showing the before-and-after. Make the videos short and eye-catching, with clear calls to action.
You probably should look at CPL...
Cost-per-lead (CPL) is always the big question. It's really difficult to say what a "reasonable" CPL is without knowing more about your sales cycle and deal size. But I'd aim for something between £50-£100 to start. That should give you a good indication if your ads are working and whether you're reaching the right people. Really though, your acceptable CPL depends on your sales cycle and deal size. If you're closing £20k deals, you can afford a higher CPL than if you're closing £2k deals. Always track everything meticulously and don't be afraid to iterate and adjust your campaigns based on the data you see.
Oh, and don't forget retargeting. Show ads to people who have visited your website or engaged with your LinkedIn content. This can help move them further down the funnel and increase your chances of converting them into leads. Plus, it's usually cheaper than targeting cold audiences.
You'll need a bit of A/B testing...
A/B testing is crucial to optimising your ad campaigns. Try testing different ad copy, visuals, targeting options, and landing pages to see what works best. This will help you refine your strategy and improve your CPL over time. We always run multiple versions of ads and landing pages. Small changes can make a huge difference in performance.
Also make sure your landing page has a clear and compelling offer. What's in it for them if they become a lead? A free consultation? A demo of your service? A whitepaper on the latest trends in data labeling? Make it something valuable that will entice them to give you their contact information. We use a copywriter to make sure that it's as persuasive as possible.
This is the main advice I have for you:
| Area | Recommendation |
|---|---|
| Ad Platforms | Prioritise LinkedIn Ads for B2B precision; explore Google Ads for active searchers. |
| Messaging | Address pain points directly with compelling video content and conversational copy. |
| Cost-Per-Lead (CPL) | Aim for £50-£100 initially, adjust based on sales cycle and deal size. |
| A/B Testing | Continuously test ad copy, visuals, targeting, and landing pages to optimise performance. |
Hope that all makes sense and helps you scale your customer acquisition efforts! I know it can all sound a bit daunting. We've run a lot of campaigns for B2B SaaS companies, including some in the AI/ML space. I remember one client, a software company, for whom we prioritised LinkedIn Ads to target B2B decision makers, achieving a cost per lead of $22. If you'd like to have a chat about your specific situation and how we could potentially help, we'd be happy to offer you a free consultation. We can go through your strategy, account, and where you want to go. I'm pretty sure it'll give you the confidence to know if we're the right choice.
Regards,
Team @ Lukas Holschuh
