- January 15, 2023
The Cost of Advertising on LinkedIn: A Comprehensive Guide
LinkedIn Ads is a powerful platform that allows businesses to connect with potential clients, partners, and employees. As such, it can be an effective way to reach out to professionals in your industry, and to build your brand. However, many businesses are unsure about how much it costs to advertise on LinkedIn. In this blog post, we will take a comprehensive look at the costs of advertising on LinkedIn, and explore the various factors that can affect the price of your ad campaign.
We’ll cover the different types of ads available on LinkedIn, how the platform’s targeting options can impact your costs, and how to optimize your budget for maximum ROI. Whether you’re just starting out with LinkedIn advertising or are looking to improve your existing campaigns, this guide will provide you with the information you need to make informed decisions about your ad spend.
When it comes to linkedin advertising costs, one of the biggest questions on many business owners’ minds is “how much does it cost?” The answer to that question can vary widely depending on a number of factors, including the type of ad you choose, your targeting options, and the overall goals of your campaign. Understanding LinkedIn advertising costs is crucial to creating an effective ad campaign that delivers a solid return on investment.
One of the main factors that can affect the cost of LinkedIn advertising is the type of ad you choose. For example, sponsored content ads, which appear in users’ feeds, can cost anywhere from $5 to $20 per thousand impressions (CPM). On the other hand, sponsored InMail ads, which appear in users’ inboxes, can cost anywhere from $5 to $8 per recipient. Sponsored ads, which appear in the right-hand column of the LinkedIn website, tend to be the most affordable option, with costs ranging from $2 to $5 per click (CPC).
What are the different types of Linkedin ads?
Sponsored Content: These ads appear in users’ feeds and are designed to blend in with organic content. They can include text, images, videos, and calls to action. Sponsored content ads can be used to promote a variety of objectives, such as website visits, lead generation, and brand awareness.
Sponsored InMail: These ads appear in users’ inboxes and allow businesses to send personalized messages to their target audience. They can be used to promote a variety of objectives, such as event attendance, lead generation, and product demos.
Sponsored Ads: These ads appear in the right-hand column of the LinkedIn website. They are designed to grab users’ attention and can include text, images, and calls to action. Sponsored ads are typically used to promote a variety of objectives, such as website visits, lead generation, and brand awareness.
Dynamic Ads: These ads allow businesses to automatically generate and display personalized ad content based on the LinkedIn user’s company and job title. This ads are designed to be more relevant to the target audience and increase the chances of conversion.
Lead Gen Forms: These ads allow businesses to embed a form within their ad, allowing users to submit their contact information without leaving the LinkedIn platform. This is a great option for lead generation campaigns.
Carousel Ads: These ads allow businesses to include multiple images or videos in a single ad. Users can swipe through the images/videos and this format is useful for showcasing a product line or a range of services.
All these types of ads have different capabilities and targeting options, and the choice of which one to use depends on the specific objective of the campaign and the audience you want to target.
Another factor that can impact the cost of LinkedIn advertising is targeting. LinkedIn allows you to target your ads based on a variety of criteria such as job title, location, industry, and more. The more specific your targeting, the more expensive your ads will be. For example, targeting a specific job title in a specific location will likely cost more than targeting a broader job title in a general location.
Additionally, the overall goals of your campaign can also affect the cost of LinkedIn advertising. For example, if your goal is to generate leads, you may need to invest more in your ad campaign than if your goal is simply to increase brand awareness.
To give an example, a company that wants to generate leads with a targeted campaign of sponsored content ads, with a cost per click of $5, targeting a specific job title in a specific location, will pay more than a company that wants to increase brand awareness with a sponsored ad campaign with a cost per thousand impressions of $2, targeting a broader job title in a general location.
What is a good budget for LinkedIn ads?
The budget for LinkedIn ads can vary depending on the industry and the goals of the campaign. Here are some examples of recommended budgets for three different industries:
B2B Software: For a B2B software company looking to generate leads, a budget of \$2,000 to \$5,000 per month is recommended. This budget can be used to run sponsored content and sponsored InMail ads targeting specific job titles and industries.
Recruiting: For a recruiting agency looking to increase brand awareness and attract job candidates, a budget of $1,000 to $3,000 per month is recommended. This budget can be used to run sponsored content and sponsored ads targeting specific job titles and industries.
E-commerce: For an e-commerce company looking to drive sales, a budget of $3,000 to $5,000 per month is recommended. This budget can be used to run sponsored content and sponsored ads targeting specific job titles and industries, with a focus on lead generation forms and conversion optimization.
It’s important to note that these are just examples and the actual budget will vary depending on the specific goals, audience, and targeting of the campaign. Additionally, it’s always a good idea to start with a smaller budget and test the results before increasing the budget.
It’s also important to keep in mind that LinkedIn advertising costs can vary depending on the region and the competition. For example, the cost of targeting a specific job title in a specific location in the United States may be more expensive than targeting the same job title in a different location.
Finally, it’s always a good idea to track your results and adjust your budget as needed. A/B testing different ad variations and targeting options can help you optimize your budget and achieve a better return on investment.
Is advertising on LinkedIn worth it?
Advertising on LinkedIn can be worth it for both B2B and B2C companies, but it may be more beneficial for B2B companies.
LinkedIn is a professional networking platform with over 700 million users, and it provides a unique opportunity for B2B companies to reach and connect with other businesses and professionals in their industry. It can be a powerful tool for lead generation, thought leadership and brand awareness. B2B companies that sell products or services to other businesses, such as software, consulting, or recruitment services, can benefit from advertising on LinkedIn.
For B2C companies, LinkedIn can be a valuable platform for recruiting talent, building brand awareness and thought leadership. However, LinkedIn is not as good as other platforms for B2C companies that have products or services that are more consumer-oriented.
Examples of B2B companies that have had success with LinkedIn advertising include:
A software company that uses LinkedIn’s targeting options to reach specific job titles in the IT industry and generate leads.
A consulting firm that uses sponsored content ads to promote thought leadership and build brand awareness among decision-makers in the finance industry.
A recruitment agency that uses sponsored InMail ads to reach potential job candidates in specific industries and fill open positions.
Examples of B2C companies that have had success with LinkedIn advertising include:
A luxury hotel that uses sponsored content ads to promote its brand and special offers to business travelers and decision-makers in the travel industry.
A professional services firm that uses sponsored content ads to promote thought leadership and build brand awareness among specific job titles and industries.
LinkedIn advertising can be worth it for both B2B and B2C companies, but it may be more beneficial for B2B companies looking to reach other businesses and professionals in their industry. It’s important to have a clear understanding of your target audience and the goals of your campaign when deciding whether to advertise on LinkedIn.
In conclusion, the cost of advertising on LinkedIn can vary widely depending on a number of factors, but by understanding the costs associated with the different types of ads available, the impact of targeting options and the overall goals of your campaign, you can create an effective ad campaign that delivers a solid return on investment.
Co-Founder of PPC Ad Editor. I am a leader in digital marketing, specializing in strategic planning, implementation, and optimization.