Indeed is making sweeping changes to how companies advertise on their platform. Starting June 1, 2023, Indeed will implement a minimum budget requirement for each position posted on their platform in order to maintain healthy application volumes for job and campaign performance.
In the past, companies were able to set any desired budget for a job or campaign, based on their marketing needs. For example, prior to this change, some companies would use low budgets and high job volumes to purchase traffic at a very low cost per click. With these changes, companies will need to meet the new Indeed healthy budget requirements when posting on the platform.
Planning to use Indeed in the future? It’s essential for companies and talent acquisition teams to understand this transition, the reason for it, and how these changes can impact a company’s media spending moving forward.
Introducing Healthy Budgets
Indeed is instituting a new healthy budget requirement that applies across all jobs on the platform (going forward, Recruitics will use the term "minimum budget requirement" to clarify how hiring professionals can use their budget effectively).
Advertisers must now meet a minimum budget requirement for each job they post on Indeed. The platform has implemented this change to ensure that all jobs advertised on their platform have what they deem to be a sufficient budget.
Significance for Employers
Indeed aims to increase job posting budgets to effectively achieve hiring goals. By implementing a minimum budget, each job in a campaign can receive enough traffic and meaningful performance to meet the minimum budget requirement.
The biggest takeaway from Indeed is that there is a need to obtain sufficient traffic to hit hiring goals, which means there is a need for a minimum budget to do so.
To achieve hiring goals, it is important to generate sufficient traffic, which may be hard to achieve without a sufficient budget. For example, advertisers who allocate less than $25 per job may not achieve their hiring goals and may waste money on clicks that do not result in converted applications. The introduction of a minimum budget provides the opportunity to attract enough traffic to the job posting.
Although some advertisers may already comply with the new rule depending on their job volume and budget, for high-volume and high-job clients, the $25 per job minimum budget may be a significant change.
What Should Advertisers Keep in Mind?
Adhering to best practices often means managing performance that falls below this minimum budget. Companies need to critically evaluate performance below the spend threshold.
Following best practices may involve dealing with performance that is below the minimum budget requirement. Companies must assess such performance critically.
It is worth noting that some companies may wish to operate below the $25 threshold, while others may be willing to spend more than that per job. It is important to keep in mind that there are alternative sources that do not necessitate compliance with these minimum budget requirements. Thus, a customized and diversified strategy could prove to be beneficial.
The primary focus should be on determining the appropriate budget for the job and allowing the broader network of job sites to perform effectively.
What To Keep In Mind With Indeed’s Shift to Healthy Budgets
Recruitics’ philosophy has always been that investment follows performance, and the team believes in strategies that are data-driven.
Advertisers who already meet the minimum budget requirement for their job postings will benefit from this shift. However, companies that need to see performance below this spend threshold would benefit from a diversified strategy.
Recruitics has a strong network of publishers that provide good quality traffic, allowing for a diversified strategy. This budgeting approach involves understanding the hierarchy of investment needed to achieve hiring goals. Recruitics will distribute funds across the publisher network, considering the minimum threshold set by Indeed. The team will prioritize essential roles that have sufficient funding and use the remaining network to supplement the remaining outflow.
There is a minimum budget that is necessary for a healthy application volume or job/campaign performance.
Reach out to your representative or the sales team today if you’d like more information about how to navigate this shift! The Recruitics team is here to help companies and advertisers with their budgets and strategy.