Digital Advertising for SaaS: All You Need to Grow in 2024

Did you know the global SaaS market is projected to reach $908.21 billion by 2030, growing at a CAGR of 18.7%?

With such a rapid expansion, how equipped is your SaaS business to scale and thrive in this highly competitive space?

As the market grows, so does the competition, and there is a need for a solid digital advertising strategy to reach and engage potential customers effectively.

But why does SaaS-specific marketing matter?

Simply put, SaaS products are not tangible goods that can be seen or touched. Instead, they are intangible services that require a different approach when it comes to marketing and advertising.

This is where digital advertising becomes crucial in promoting your SaaS business to potential customers.

What Is Digital Advertising for SaaS?

At its core, digital advertising is an umbrella term for marketing products/services via online channels. These may include websites, content streaming platforms, social media, email marketing, and search engines.

The traditional approach in digital advertising implies creating targeted ads that focus on demographics, interests, and behavior to reach potential customers.

However, for SaaS businesses, digital advertising goes beyond traditional marketing methods.

It requires a deep understanding of the target audience, their pain points, and how your SaaS solution can solve their problems.

While digging through sources defining digital advertising for SaaS, you may come across various terms like inbound marketing, content marketing, and growth hacking. But most often, the term goes hand in hand with pay-per-click (PPC) advertising.

The idea behind PPC advertising is to bid on specific keywords and pay every time a user clicks on your ad, leading them to your website. This requires extensive research on relevant keywords and a well-planned budget.

Moreover, it can turn out to be the most effective approach to marketing your SaaS business, but only if it is used in conjunction with your other marketing strategies.

Why Is Digital Marketing for SaaS Difficult?

Competition. Lack of expertise. Costs.

These are the common challenges SaaS businesses face when it comes to digital advertising.

FYI, according to recent studies, the US has the largest proportion of global SaaS companies, with over 60%. This alone is a clear indication of the stiff competition in the market.

While the total number of SaaS businesses is hard to determine, it is obvious that newcomers must be equipped with the right skills and knowledge to stay afloat with the complexities of digital advertising.

The rise in costs across all digital advertising platforms, particularly in the US, is another challenge to consider. With prices soaring, digital advertising is becoming an increasingly expensive endeavor.

For instance, not so long ago, our PPC experts reported instances of clicks costing as much as $260! This inflation necessitates a greater depth of knowledge, expertise, and experience in digital advertising.

It’s no longer enough to simply have a basic understanding of how the system works; you need to be willing to go the extra mile.

This could mean investing in better creatives, improving your landing pages, or adopting more efficient ad strategies. These additional efforts can potentially enhance the effectiveness of your campaigns, helping you get the most out of your advertising budget despite the rising costs.

5 Most Common Mistakes SaaS Companies Make

So, now that we’re sailing in the same boat and you’ve got the lay of the land, you might be wondering, “What slips could I possibly make in this digital advertising voyage?” Well, even the most successful captains can sometimes miss the icebergs.

Operating within the SaaS industry, we all know that a minor oversight can sometimes lead to a major setback.

We’ve outlined some of the most common SaaS advertising mistakes to help you identify some of your potential weak spots and improve your digital advertising efforts.

It’s time for some real talk…

1. Weak Value Proposition

Having a top-notch SaaS product is great, but it’s not enough.

You need to tell people why they should care!

That’s where your value proposition comes in—it’s like your product’s superhero tagline.

On your landing page, where potential customers ‘land’ first, you’ve got to clarify why your SaaS is the answer to their problems. Here’s how to clarify your value proposition:

  • Make it problem-solving: Show your website visitors exactly how your product will make their lives easier or better. For instance, if your software helps with project scheduling, don’t just say that. Share numbers from use cases showing that your software can reduce project management time by 70%.
  • Stand out from the crowd: There’s a whole bunch of other SaaS options out there. You must wave your flag high and show why your solution is better. Maybe you offer the best customer support or a unique feature they can’t get anywhere else. Express that on your landing page.
  • Highlight the benefits: Every hero has superpowers, and your product is no exception. List out the big wins customers will get by choosing you—like saving money, hassle-free setup, etc.

Camel Digital’s Solution

At Camel Digital, we have devised a successful strategy that effectively utilizes value propositions to boost conversion rates, most notably demonstrated in our work with Chekkit.

Through intensive market research, we identified and honed in on the unique selling points of Chekkit, which allowed us to craft a compelling value proposition that resonated with the target audience.

The formula is simple:

Clear and concise landing page with the key value propositions presented. ✅

Ad creatives that highlight the benefits of Chekkit and its unique selling points. ✅

Strategic placement of ads on platforms where potential customers are most likely to be in a mindset conducive to our messaging. ✅

The result? An increase in conversions and a reduction in costs for Chekkit. Talk about a win-win situation!

2. Not Aligning with User Mindset

Your content doesn’t align with your target users’ mindset.

Your advertising strategy must align with your customers’ goals across the platforms you use to build your social presence.

Let’s break it down:

Google: Users on Google are actively searching for information and solutions. Your ads and landing pages should provide these solutions, whether that’s an innovative SaaS tool or a helpful guide.

Facebook: On Facebook, people are looking to connect with friends and family, entertain themselves, and engage with content that interests them. Your ads should match this mindset and be engaging, fun, and perhaps informative. Consider using engaging videos with real people and emotions or promoting blogs with topics your audience would find interesting. Don’t hesitate to get creative – even cat memes can make your creatives more engaging!

LinkedIn: Being a business network, LinkedIn requires a more professional tone. People here are keen to share their thoughts about business and find valuable resources. Consider sharing guides, cheat sheets, or content to help potential customers solve work-related problems.

TikTok: TikTok is all about entertaining and educational videos. The platform offers a golden opportunity to engage viewers with topics they are interested in. If you’re targeting business people or marketers, consider sharing videos that help solve their problems.

Remember, the key is to align your advertising strategy with the mindset of your audience on each platform. This will not only make your ads more effective but will also help improve your overall digital advertising efforts.

2. Misaligned Ad Copy and Creatives

This often happens on platforms like Google Ads, where companies lump a multitude of keywords under a single ad group and serve the same ads for different queries.

For instance, if they’re advertising for keywords like “create a pitch deck,” “create presentations,” and “make proposals,” but only serve an ad for “create proposals online,” the disconnect is evident.

At Camel Digital, we have encountered such accounts time and time again. They’re usually characterized by everything being crammed under one ad group, leading to low click-through rates (CTR), low-quality scores, and, ultimately, low conversion rates.

This is because users searching for a specific service are presented with ads for a different one.

3. Using a Generic Landing Page for All Products

Another common mistake we’ve noticed is businesses using their main page as the landing page for all their products. While this might appear convenient, it can severely impact your conversion rates.

This is particularly true for SaaS businesses that offer a range of products, such as review management software, texting software, and web chat tools. Each product is unique and caters to a specific audience with distinct needs.

It’s crucial to understand that if your main page converts well, it doesn’t mean it will work the same for all your products. Every product should have its dedicated landing page specifically optimized for conversions. This way, potential customers land on a page that directly addresses their needs, increasing the chances of them engaging with your product.

A one-size-fits-all approach might be easier to manage, but it certainly isn’t the most effective when it comes to digital advertising for SaaS. Tailored landing pages allow you to speak directly to your audience, address their unique needs, and ultimately lead to higher conversion rates.

Camel Digital’s Solution

At Camel Digital, we take a targeted approach to landing page creation. For each product, we develop a custom landing page that clearly showcases the product’s unique selling points, aligns with the customer’s search intent, and is optimized for conversions.

Our landing pages are designed to guide users smoothly through the purchasing process, from initial engagement to final transaction.

4. Not Using Ad Platform Algorithms Properly

A strategy that was working back in 2018 and 2019 is now obsolete.

With the evolution of advertising platforms, they are now armed with machine learning algorithms that require data to learn and adapt.

Without sufficient data, how can these algorithms optimize your ads?

By targeting too specific or too narrow, you limit the amount of data you feed to these algorithms, hence restricting their learning process. This approach often results in an insufficient audience size, making it difficult for the platform to optimize for conversions.

In contrast, when you advertise to broader audiences and start getting conversions, these platforms can learn and adapt, optimizing your ad delivery and performance. Hence, it’s crucial to understand that these platforms require a more extensive data set to perform effectively.

Here are several examples with calculations to help you visualize everything:

Broad Match in Google Ads

With advancements in algorithmic understanding, Google Ads has become more adept at matching user intent with the right ad experiences. In the context of digital advertising for SaaS, broad match is an invaluable element that cannot be overlooked.

At Camel Digital, we’ve observed that ad groups with more impressions tend to correlate with increased conversions.

This phenomenon highlights the principle that Google learns from the data it accumulates, subsequently adjusting to improve performance. We recommend maintaining a minimum of 15 conversions within the past 30 days to set the stage for optimization; while 5-10 may suffice, it’s optimal to aim for 15-30 conversions.

Scaling Audiences in Facebook Ads

Targeting broader audience sizes is now a cornerstone strategy to enhance learning algorithms’ efficiency. Whereas a 45,000-person audience was enough in 2018, the platform’s algorithms today require more extensive data to decipher and hone in on your ideal customer profile accurately. 

The key is to strike a balance–not too narrow, not too broad, just the right size of the audience for the algorithms to learn and optimize.

Here’s an example: 

5. Advertising for the Bottom Funnel Too Fast

We all know the thrill of a quick win, don’t we?

Imagine seeing your strategies pay off immediately, with a high volume of conversions rolling in.

But this approach often overlooks the importance of building brand awareness and nurturing potential customers through the sales funnel.

Advertising platforms like Google and Facebook are deeply into machine learning, with algorithms created to optimize ad delivery. These algorithms need time and data to learn about your prospects and customers.

This means you must gradually provide them with information to discern between good and bad clicks. Rather than jumping straight to conversion advertising, consider first focusing on strategies that generate engagement and provide learning data for the platforms.

Camel Digital Suggests

Through the years of working with SaaS businesses, we have developed a proven formula that drives conversions and maximizes ROI for our clients.

Our approach involves creating tailored web pages, using targeted platform algorithms, and guiding possible customers through each step of buying. For instance, we might concentrate on getting people to watch your videos on YouTube and click to read your blog. These actions help the ad tools learn about what people like, so your ads work better.

Once the platform has had sufficient time to learn from these signals and understand your audience, you can start shifting your focus toward conversion advertising. This methodical approach to digital advertising for SaaS not only provides a better foundation for the algorithms to work but also leads to more efficient use of your advertising budget, ultimately yielding higher conversion rates.

Don’t fall into the traps commonly associated with digital advertising for SaaS businesses. Trust Camel Digital to provide a comprehensive solution that drives results and takes your business to new heights.

6. Neglecting Retargeting Strategies

Retargeting, in the context of digital advertising for SaaS, is a powerful marketing technique that allows you to stay connected with people who have already visited your website.

Use retargeting as a friendly nudge to remind potential customers about your product or service after they’ve left your website without making a purchase or signing up.

With retargeting, you can display relevant, targeted ads to these ‘lost potential customers’ when they browse other websites or social media platforms, thereby increasing the likelihood of them returning to your website and converting into paying customers.

Retargeting Best Practices: Quick Cheat Sheet

We cannot leave you without useful takeaways, so here’s your quick cheat sheet on retargeting best practices for SaaS businesses:

  • Segment your audience
  • Have clear CTAs
  • Test different ad formats (banners, video, etc.)
  • Continuously measure and adjust your retargeting campaigns for optimal performance.

Your SaaS Ads Should Break the Ice, Not the Bank!

To make your SaaS business stand out online, just follow these simple steps for successful and budget-friendly campaigns:

Tip 1. Define Your Target Audience

Understanding your Ideal Customer Profile (ICP) is a fundamental step in any digital advertising strategy. The ICP represents the type of company that would derive maximum benefit from your SaaS product. Knowledge of your ICP helps you streamline your advertising efforts and design campaigns that resonate most effectively with them.

Once you define your ICP, you can explore the unique targeting options provided by various advertising platforms. For instance, Google Ads allows you to use custom intent audiences, where you can enter the brand names of your competitors to reach audiences interested in similar products. You can also create audiences based on targeted keywords relevant to your SaaS business.

Moreover, Google Ads provides an in-market audience feature that lets you reach users who are actively researching and considering buying a service or product similar to yours. 

However, all these powerful targeting tools are of little benefit if you do not have a clear understanding of who your ideal customer is. Therefore, spend considerable effort to define your ICP before diving into any advertising platform’s features. 

This approach ensures you are reaching the right people at the right time, maximizing the return on your advertising efforts.

Tip 2. Create Strong Ad Copies Aimed at high CTR

Regardless of the advertising platform you’re using, compelling ad copies and creatives are paramount to standing out from the competition. Click-Through Rate (CTR) is a critical metric for all advertising platforms. If people are clicking on your ads, it sends a strong signal to the advertising platform that users find your ads appealing, prompting the algorithms to boost your ads’ visibility.

Google Ads Copy

When crafting ad copies for Google Ads, it’s important to pack your ads with as many value propositions as possible. For example, phrases like “It’s Easy to Use and Free” can be very enticing. Highlight what potential customers can gain from using your product, such as “1K+ Pre-Designed Templates”, or what they can do with your software like “Create Maps Within Seconds” or “Visualize Any Location in 5 Minutes” (examples from mapping software).

Facebook Ads Creative and Copy

For Facebook, the key is to follow the ‘hook, story, offer’ principle. Design your ads to stop potential users from scrolling their feeds and prompt them to actually look at your ads. Your ad copy should highlight your value propositions and clarify what customers can gain from your product.

The ‘hook’ grabs the user’s attention, the ‘story’ engages them with your product, and the ‘offer’ convinces them of the value of choosing your product over others. With these strategies, your digital advertising for SaaS can effectively attract and convert potential customers.

Tip 3. Seize the Moment: Engage Prospects When They’re Actively Searching

In the SaaS digital advertising landscape, bottom funnel strategies are essential for maximizing your conversions.

This is how you identify where visitors are in the sales/marketing funnel and tailor your messaging accordingly to reach them at the right time and place. Among these strategies, the use of high-intent keywords is particularly effective.

High-Intent Keywords

Individuals searching for high-intent keywords are typically well-aware of the solution they need and are merely seeking a tool to realize it. They occupy the bottom of the funnel, making their messaging more product-oriented, focusing on what users can achieve and gain from your software.

Although these keywords may be more expensive and exhibit lower search volumes, their conversion rates are generally higher as users already have a clear idea of what they want. Examples include phrases like “Review management software” and “online mapping tool”.

For these users, ads should underscore value propositions and direct them to product pages.

Competitor Keywords

Targeting competitor keywords is another effective bottom funnel strategy. If individuals are researching your competitors, they are likely aware of alternative solutions and have a strong intent to buy, indicating that they are near the bottom of the funnel and close to making a purchase.

Keywords ending with terms like “alternative,” “pricing,” “reviews,” and similar words suggest that a user is researching your competitor’s product, providing an opportunity for you to display ads with competitor comparison pages.

RLSA (Remarketing List for Search Ads)

RLSA is an invaluable tool for targeting users who have previously visited your website. When users revisit your website, it indicates they are in the consideration stage and comparing different solutions, including yours. It’s crucial to show your ads to these users. 

You can do this by creating audiences in the “Audience Manager” and putting your ads in front of them as they continue their search.

Tip 4. Use Lead Magnets and Educational Content

For B2B SaaS vendors offering high-value subscriptions, competitive intensity and high Cost Per Click (CPC) for bottom of the funnel keywords can rapidly deplete your advertising budget.

Examples include keywords such as “CRM software for real estate investors” or “Hubspot alternative,” where average CPCs can escalate to $30, $40, or even $60 per click.

Moreover, the decision-making process for high-value B2B products tends to be lengthy, making it lucrative to penetrate the sales funnel from the middle or top. One effective strategy is to target broader audiences and educate them about your product to enhance brand familiarity.

Google Ads: Retargeting and High Volume Keywords

On Google, consider retargeting your website visitors with your lead magnets. You can also target high volume keywords with lower competition as a means to enroll potential subscribers into your sales funnel.

Facebook and LinkedIn: Offering Downloadable Guides

Facebook and LinkedIn can be instrumental platforms for offering a downloadable guide that educates your audience. Traditional signup or subscription conversion ads may not be as engaging on social media and could lead to high Cost Per Mille (CPM) costs due to fewer people stopping their scrolls.

In contrast, lead magnet ads tend to be more appealing, resulting in a more engaged audience and potentially lower advertising costs.

By shifting focus to mid and top of the funnel strategies, your digital advertising for SaaS can successfully navigate the high-cost and high-competition landscape of B2B SaaS marketing.

Tip 5. Optimize Landing Pages for Conversion Rates

Landing pages are critical for converting visitors into customers, as they are the final stop before users make a purchasing decision. Often, businesses focus on driving traffic to their website and neglect optimizing their landing pages, leading to low conversion rates despite high click-through rates.

While we at Camel Digital are dedicated to your overall digital marketing success, it’s also crucial to focus on specific details like landing page optimization. Here are some of our best practices for creating high-converting landing pages:

Matching Ad Intent with Landing Page

It’s vital to ensure that the message on your ad corresponds with the content on your landing page. Any disconnect can confuse potential customers, leading to higher bounce rates. Thus, maintain consistency in your message across all platforms to build trust and maintain user engagement.

Strong Headlines and Value Propositions

The headline is the first content your visitors read. It needs to be compelling and clearly express the value your SaaS offers to your customers. Your value proposition should quickly highlight what sets you apart from the competition, demonstrating why customers should choose your product.

Removing Distractions, Optimizing for a Single Goal

A high-converting landing page has one primary goal. It’s essential to remove any distractions that could divert visitors from this goal. Whether it’s signing up for a free trial, making a purchase, or filling out a form, every element on the page should lead the visitor towards this outcome.

Full Understanding From the First Second

Your landing page content should be instantly understandable. Within seconds, visitors should know what your SaaS does and how it can benefit them. Use clear, concise language and appealing visuals to achieve this.

Call to Action

CTAs are crucial for directing users on the next steps. Instead of generic CTAs like “Start your free trial,” use more specific actions like “Import your voter list” or “Create your pitch deck”. This gives users a clear idea of what they can do with your software from the get-go.

Adding Social Proof Higher on the Page

Social proof, such as customer testimonials or industry accreditations, instills confidence in your visitors. By placing it higher on the page, you leverage these trust signals early, influencing users to engage further with your page.

3-4 Value Propositions

Outline 3-4 main values that your product offers. Whether it’s cost savings, increased efficiency, or superior customer support, these propositions should be concise and impactful, enticing visitors to explore your product further.

List of Features at the Bottom of the Page

Finally, conclude your landing page with a detailed list of your product’s features. This can serve as a comprehensive reference for users who want more detailed information about your SaaS offering, providing them with all the information they may need to make a purchasing decision.

Tip 6. Test and Optimize Your Ads

Testing your ads responsively is a key aspect of ensuring your digital advertising for SaaS is effective.

While the industry today is full of various ad testing software and strategies, it’s essential to know that what works for one company may not work for another. Thus, engaging in a trial and error process to determine the best-suited ads is crucial.

Yet, here are a few strategies you can employ.

Analyzing Individual Performance

Examine the performance of individual headlines and descriptions within your responsive search ads (RSAs). Google Ads allows you to view the performance of each headline and description, enabling you to observe which combinations are most effective.

Continuous Testing

Never stop testing your ads. Even if an ad is performing well, there’s always room for improvement. By continuously testing, you can optimize your ads to ensure the best possible performance.

Pinning

Take advantage of the ‘Pinning’ feature in your RSAs. This allows you to control where headlines and descriptions appear in your ad. For instance, you can ensure your main headline always appears in the first position to maintain consistency.

Multivariate Testing

Carry out multivariate testing to identify the most effective combinations of headlines and descriptions in your ads. This involves testing multiple variables at once, which can provide more holistic insights than traditional A/B testing.

By employing these tips, you can ensure your digital advertising for SaaS is as effective as possible, driving qualified leads to your business and helping to increase conversions.

Tip 7. Track Key Metrics

Keeping a close eye on key metrics helps you evaluate the performance of your digital advertising for SaaS. Understanding these metrics can provide invaluable insights into how your campaign is performing and where it might be improved.

Click-Through Rates (CTR)

CTR is the number of clicks your ad receives divided by the number of times your ad is shown (impressions). A higher CTR indicates that your ad is relevant to those who see it.

Conversion Rates

Conversion rate tracks how many people completed a desired action (like signing up for a trial or purchasing the product) after clicking on your ad.  This metric is crucial in measuring the success of your ad campaigns.

Cost per Acquisition (CPA)

CPA is the average amount of money you spend on ads to acquire a new customer. By tracking this metric, you can ensure that your ad campaigns are profitable and make necessary adjustments if needed.

Each of these metrics provides a snapshot of how well your digital advertising campaign is achieving its goals. By consistently monitoring and optimizing these and other metrics, you can ensure your digital advertising for SaaS is as effective as possible.

To Sum It Up

Excelling in digital advertising for SaaS requires a strategic approach, from the creation of compelling headlines and value propositions, crafting clear, distraction-free landing pages, to regular testing and optimization of ads.

At Camel Digital, we specialize in these exact strategies to help SaaS businesses like yours gain an edge in the ever-competitive digital space.

Our roads cross if your goal is to improve your digital advertising and attract more leads working smart not hard.

Let’s take your SaaS business to the next level.

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