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LinkedIn Ads

How much do LinkedIn ads cost?

April 18, 2019

LinkedIn is the ultimate place for advertisers targeting other businesses or potential employees. It offers great advertising formats that aren’t intrusive to the viewer and you only pay when your message is delivered. Considering this is an all professional setting, does it mean LinkedIn advertising is going to cost you a considerable more amount of […]


LinkedIn is the ultimate place for advertisers targeting other businesses or potential employees. It offers great advertising formats that aren’t intrusive to the viewer and you only pay when your message is delivered.

Considering this is an all professional setting, does it mean LinkedIn advertising is going to cost you a considerable more amount of money? Not necessarily. It depends on how you bid and whom you’re targeting.

Read on to get a deeper look.


Who Should Advertise On LinkedIn?

To answer this question you first need to understand who is on LinkedIn and Why.

People are on LinkedIn to find better career opportunities, find employment, network with high flying business owners and people in authoritative positions, to get new business ideas and to improve their existing business practices.

So if you are selling a B2C product LinkedIn is not for you. Social Media channels like Facebook, Twitter & Instagram will be a better bet.

If you sell something that benefits other business owners or working professionals then LinkedIn is the place for your business to be in.


Who sees your LinkedIn Ad?

Well everyone who is active on LinkedIn and some of their partner sites. The partner sites are called as the LinkedIn Audience Network, are mostly high-end media sites.

Some of LinkedIn partners sites are:


  • New York Times
  • BusinessWeek
  • CNBC

The next obvious question is


How much do LinkedIn Ads Cost?

LinkedIn ads cost depends on a lot of variable like


  • What season are you advertising in
  • What day of the week it is
  • What time of day it is
  • How many users you’re targeting
  • What locations you’re targeting
  • What demographics you’re targeting
  • How relevant your ad is to your target audience
  • Overall quality of your ad
  • What industry you’re in

LinkedIn calculates CPC (Cost per Click) and CPM (Cost per  Mille) in its own way.

Impressions on LinkedIn are counted when an ad is “visible for at least 300 milliseconds with at least 50% in view on a member’s device screen or browser window.”

Meanwhile, if you’re paying on a CPC basis, LinkedIn will charge for clicks on your ad content, your company name, or your company logo.

A typical ad on LinkedIn will have a CPC of $5.61and a CPM of $6.05.


How to reduce ad costs on LinkedIn


  1. Matched Audience

Use Matched Audiences. This feature lets you target users who are in your contact lists, have visited your website, or work for a specific company. Targeting with Matched Audiences raises CTR 30 to 40% on average compared to standard targeting (and thus makes your ads more cost-efficient).


  1. Choose the Right Ad Type

LinkedIn offers a variety of ways for advertisers to reach specific goals through the use of different ad types. Advertisers have the choice of three types of ads when they go to create an Ad campaign on LinkedIn.


Sponsored Content

These are ads that resemble a piece of content that can be found on LinkedIn’s feed. They include multiple lines of text and an image. LinkedIn even offers the ability to put a form right in the ad, making this an ideal choice for advertisers looking to build a contact list.


Text Ads

With text ads, advertisers are able to craft a small message with a company logo next to it. These ads are best for companies that are looking for more brand awareness on LinkedIn.

Sponsored InMails ads allows advertisers to send a personalised message to their target audience using LinkedIn’s internal messaging system. For advertisers who want to be a little more direct and detailed with their audience, this is the best way to achieve that.


  1. Monitor Bids

At 500 million users out of which 75% are outside the US, LinkedIn’s ad space inventory has officially maxed out. What this means for B2B companies is that high bids become necessary in order to remain competitive. Last year, LinkedIn advertisers saw an average CPC of $5.61 (compared to $2.32 for AdWords search).

This high cost per click will make it difficult for advertisers to see the same success they do on other platforms. With an average CPC that’s 240 percent higher than AdWords, conversion rate goals will also need to be increased that much in order to see the same cost per conversion.

That said, there are many successful strategies that an advertiser is able to implement in order to get their conversion rate as high as possible, which will be discussed in the next step.


  1. Continually Test Ads

Just like all paid advertising, it is important to continually experiment with new ad copy in order to discover the images and text that resonates with the target audience. It can also help make sure ad copy remains fresh so users don’t see an ad more than a few times.

It is important to pay attention to how long an ad is running for. If a company is advertising to a small group of people, it is likely that a single user is seeing the ad multiple times. It’s best practice to have a consistent schedule for rotating ads. The specific time frame for this rotation depends on how big your audience is. If the group is small, look into rotating every week. If the group is big, every other week or once a month would be fine.

While the goal can remain the same, elements such as images and ad copy should be changed in order to keep the content fresh. In the end, this will help avoid ad fatigue and ultimately, improve an ad’s click-through rate.


  1. Target Audience

For users who are targeting business professionals, as most B2B businesses are, LinkedIn offers a wide variety of targeting options in order to hit the right target audience.

These options include:


  • Company & Job


Advertisers can drill down to a user’s job and company information, including job title, company name, industry and company size.


  • Demographics


Options such as location, age, and interest can be specified to make an audience list.


  • Remarketing Lists


With remarketing, advertisers can show ads to users who have already interacted with their site.

  • Email List

Companies can advertise to LinkedIn users that match up with their specific company email list.


LinkedIn is most suitable for B2B companies who are looking to find new ways to reach their target audience. You are likely to get more success with LinkedIn advertisement if you are trying to capture more leads for Business Education Courses, Job Recruitment, B2B services and products which are not location specific and can be provided worldwide.


LinkedIn ads have a higher CPC and CPM as compared to other social networks like Facebook, Twitter & Instagram. But if you have a B2B product or service your ads are likely to excel on LinkedIn as compared to the above other social networks as they are more B2C focused.

By following the above best practices, advertising success in the B2B world of LinkedIn can be found.


Do share your experience on LinkedIn with us in the comment section below.

If you are finding LinkedIn ad too confusing or looking to reduce your CPC then our LinkedIn Ad experts will be able to help you.


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