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LinkedIn’s class action settlement and the truth about paid ads

If you’ve been advertising on LinkedIn over the past few years, there’s news that might make you rethink your approach: LinkedIn recently settled a class action lawsuit, paying out $6.625 million to advertisers who may have been overcharged. If you’re an advertiser who purchased LinkedIn ads between January 1, 2015, and May 31, 2023, you might be eligible for a payout from this settlement. (No action is needed to claim your money. It will be sent to you automatically unless you exclude yourself.)

Why LinkedIn ads may not have delivered what you paid for

The lawsuit against LinkedIn centers on the claim that the platform inflated ad metrics, resulting in advertisers potentially paying more than they should have. LinkedIn allegedly misrepresented metrics by failing to account for interactions from fake accounts, mistaken clicks, and technical glitches. These errors, combined with LinkedIn’s alleged failure to verify the accuracy of ad data, could mean many advertisers were overpaying for campaigns.

The LinkedIn class action settlement may be validating for advertisers (like us!) who’ve long suspected that LinkedIn’s numbers didn’t quite add up. For years, I’ve held a suspicion that LinkedIn—and perhaps other platforms—may inflate ad metrics to make paid campaigns look more successful than they are.

This isn’t to say every click or impression is fake, but in our experience, we’ve noticed that LinkedIn’s metrics seem unusually high compared to the actual outcomes of those campaigns as measured through other sources.

We’ve run LinkedIn ad campaigns that appeared to have decent impressions and click-through rates, yet these numbers rarely translated into real leads. And that’s a problem—because impressions and clicks only matter if they result in conversions. We’ve actually stopped recommending LinkedIn ads to our clients, especially smaller businesses with limited ad budgets.

You may also be interested in: Why social media ‘likes’ don’t translate to business success

Why organic marketing is a smarter investment for small businesses

With the news of the LinkedIn class action settlement, it’s a good time for small businesses to reconsider where they’re investing their marketing dollars. Should they spend on potentially unreliable paid ads, or invest in organic content that builds a lasting brand presence?

For many small businesses, organic content marketing is the better choice. Here are three reasons why.

1. Organic marketing builds trust and brand authenticity

Organic content gives you a way to build authentic connections with your audience. Sharing valuable, relevant content positions you as a trusted authority in your field. Trust translates into brand loyalty over time, and it often drives better-quality leads than ads that feel transactional.

Paid ads, on the other hand, can feel intrusive. They’re often perceived as inauthentic, which can make it harder for people to trust your brand. With organic content, you’re offering potential clients insights into your expertise and values without the hard sell, which makes a lasting impression.

You may also be interested in: Why content marketing creativity needs a human touch

2. Organic marketing has long-lasting value

One of the biggest drawbacks of paid ads is their short lifespan. When the campaign ends, so does its reach. Organic content, however, lives on—whether it’s a blog post that brings in traffic for months (or even years) or a social media post that continues to circulate, your content will continue attracting leads and building brand awareness. You invest in organic content once, but it can continue delivering returns long after it’s published.

How Brighter Messaging’s blogging strategy (eventually) boosted Blueline’s traffic

3. Organic marketing engages your audience

Organic content invites interaction. When you post on social media, write a blog, or create a video, you’re opening a conversation with your audience. People can respond, comment, and ask questions, giving you a chance to engage with them directly. The back-and-forth builds trust, drives more engagement, and ultimately makes your brand memorable.

Paid ads, by contrast, don’t encourage this level of engagement. Sure, people might click on an ad, but they rarely interact with it as they would with an organic post. If your goal is to create a loyal customer base, organic content offers more opportunities for meaningful engagement.

How to write effective blog posts that get results.

When to use paid advertising

If you’ve read this far, you might assume that I’m anti-ad. I’m not. Like any marketing tactic, it all comes down to your overall business goals. Paid advertising does have its place, for example:

  • Paid ads can generate quick visibility for new offerings. They help get the word out fast, which is useful when you’re launching something new and want immediate awareness.
  • If you’re hosting a special event, paid ads can target local audiences or people interested in your industry to drive attendance.
  • Paid ads can help you test what types of content resonate with your target audience. They can be a valuable learning tool, allowing you to refine your organic strategy based on what gets the best response.

For small businesses with limited budgets, paid ads can be effective in short bursts for specific goals. But without reliable metrics, it’s risky to invest heavily in platforms like LinkedIn that may not deliver accurate, actionable data.

Organic marketing wins for small businesses

The LinkedIn class action settlement should be a wake-up call for any small business that’s been putting too much faith (and money) into paid ads. Although organic marketing may not deliver overnight results, it’s a more sustainable way to grow your business over time.

Focus on creating content that speaks to your audience, answers their questions, and demonstrates your expertise. As your brand builds authority and visibility organically, you’ll find that these genuine connections often convert into loyal customers—and that’s something no paid ad can buy.

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