Solved: Facebook Ad Costs and Targeting for B2B Marketplace

Hi there,

Thanks for getting in touch! I'm happy to give you some initial thoughts and guidance on your paid acquisition strategy as CMO of an early-growth B2B marketplace. I've had some experience with similar companies.

It sounds like you're facing a common challenge – steady organic growth is great, but paid acquisition can be tough, especially in the B2B space. I can definately offer some ideas and suggest an initial approach which will hopefully help you boost your paid acquisition.

We'll need to look at SMB targeting...

Firstly, I'd say that your current approach of "find vetted security professionals" on Facebook is probably too broad. SMBs aren't just looking for "vetted security professionals" in the abstract – they're looking for solutions to specific security problems. To get you best results, it's important to be very specific with your targeting.

Think about the specific pain points your target SMBs are experiencing. Are they worried about data breaches? Are they struggling to comply with specific regulations like GDPR or HIPAA? Are they facing increasing threats from ransomware or phishing attacks? By identifying these specific pain points, you can tailor your ad copy and targeting to resonate more strongly with your audience.

I remember one client we worked with, a cloud storage company, saw a significant increase in conversions when they started targeting specific industries with tailored data security concerns. For example, they ran a campaign targeting healthcare providers with ads that highlighted the importance of HIPAA compliance and the risks of data breaches in the healthcare industry. This level of specificity made their ads much more relevant and engaging for their target audience. If you can achieve similar you should see good results.

I'd say you should re-think your ad copy...

Secondly, your ad copy itself needs to be more compelling. Generic language like "vetted security professionals" isn't going to cut it. You need to use language that is urgent, specific, and addresses the specific pain points you've identified.

Instead of saying "find vetted security professionals," try something like: "Protect your business from data breaches with our expert security solutions." Or: "Ensure GDPR compliance and avoid costly fines with our comprehensive security services." The key is to highlight the specific benefits that your marketplace offers and to use language that resonates with the fears and concerns of your target audience.

We use copywriters that specialise in SaaS and have found they can pay for themselves with the increased conversion rates. Definitely worth considering.

You probably should focus your targeting...

Thirdly, consider narrowing your Facebook ad targeting. Instead of targeting all SMBs, focus on specific industries or company sizes that are more likely to need security services. You can also use Facebook's interest-based targeting to reach people who are interested in security, compliance, or other related topics. This could work well depending on the industry.

LinkedIn Ads can also be good for targeting certain industries or company sizes, especially if you are looking for senior decision makers. If it's a very small business, Facebook/Instagram ads can work well if you use some of their limited B2B targeting options like "small business owners" or "business page admins".

You'll need to think about retargeting...

Fourthly, don't neglect retargeting. Retargeting allows you to reach people who have already shown an interest in your marketplace by visiting your website or engaging with your content. These people are much more likely to convert than cold traffic, so retargeting can be a very cost-effective way to drive conversions.

I'd experiment with retargeting folks who've already shown interest on your site. You can create custom audiences based on website visitors, ad engagers, or email subscribers, and then target those audiences with specific ads. For example, you could show ads to people who visited your pricing page but didn't sign up, offering them a special discount or a free trial.

We've had several SaaS clients see really good results with UGC videos - lots of angles to test there as well.

You might want to consider budget allocation...

Regarding budget allocation, it's difficult to give a precise number without knowing more about your specific circumstances. However, given that your paid acquisition is currently stalling, I'd recommend shifting more of your budget towards retargeting and focusing on the most promising targeting options.

You might start with a 70/30 split, with 70% of your budget allocated to retargeting and 30% allocated to prospecting. Then monitor your results closely and adjust your budget allocation accordingly. If retargeting is performing well, you can increase its budget. If certain targeting options are underperforming, you can reduce their budget or test new options.

Keep in mind that the cost of Facebook ads can vary widely depending on your targeting, ad quality, and competition. It's important to experiment with different bidding strategies and ad formats to find what works best for you.

I've detailed my main recommendations for you below:

Scaling a B2B marketplace through paid ads can be challenging, and it often requires a combination of strategic targeting, compelling ad copy, and ongoing optimization. I have years of experience working with B2B SaaS companies and I am happy to further assist you.

If you are struggling to achieve the results you're looking for, you might want to consider working with an agency that specialises in paid acquisition for B2B companies. We've helped numerous clients in similar situations to achieve significant growth through paid ads, and we'd be happy to discuss your specific needs and goals.

I’m more than happy to discuss this in a free consultation – feel free to book a time that works for you.

Regards,

Team @ Lukas Holschuh