Launched in 2002, LinkedIn has been around for more than two decades and their ads shortly followed in 2005 (having just surpassed 1 million users). While LinkedIn Ads (part of LinkedIn’s Marketing Solutions division) have been around for the better part of the last two decades, many prospective ad buyers still consider whether or not to add LinkedIn Ads to their marketing arsenal and have questions/concerns namely around LinkedIn Ads pricing.
To help decide on LinkedIn Ads pricing, consider some of the benefits of incorporating LinkedIn ads into your overall advertising strategy:
- Increase your followers on LinkedIn
- Get your LinkedIn content in front of the right professionals with decision-making capabilities
- Know how many leads your ads are generating
Of its 675 million users, 65M are decision makers. Among them, 11M have a c-suite title (e.g. CEO, COO, CFO, CIO, etc.) and 5.4M are small business owners.
LinkedIn lets you target specific professionals, taking into consideration their industry, job position, experience, and more. If you choose to advertise on many other social media sites, you'll need to break through the clutter of disparate posts – potentially getting lost among social updates, political statements, memes, GIFs, and cute cat videos.
How Much Does it Cost to Have an Ad on LinkedIn?
LinkedIn ads pricing is based on a bidding system and depends on the ad type you choose, as well as other businesses that are vying for the same position. Much like Google ads, the amount you pay depends on how much competition exists for your audience, your bid amount, and your ad relevance score (LinkedIn’s proprietary formula for grading ad quality).
You can pay anywhere from the required minimum bid of $2, to the average of $5.26, or more for a CPC (cost-per-click), depending on who you’re targeting. As its name implies, you pay each time someone clicks your ad.
With a CPM (cost-per-impression, with each impression worth 1,000 views), you pay each time your ad is published. Marketers can expect to pay up to $6.59 per 1,000 impressions.
Sponsored InMail, sent to leads you chose, can be used to reach targeted prospects that aren’t in your immediate circles, used to advertise job openings or notify users of upcoming events. Your budget will incur a CPS (cost-per-send) for each piece of information placed in your target recipient’s LinkedIn mailbox. If you choose a Sponsored InMail campaign, you’ll pay $0.80 per send.
You choose the type of ad you want to use based on your advertising objectives. If you want to spread the word about your brand but not necessarily make a sale, you may want to choose CPM. When you want more visitors to your site, choose CPC.
How Much Do LinkedIn Sponsored Content Ads Cost?
Sponsored content ads appear in your target audience’s newsfeed alongside their network’s posts and updates.
Sponsored content ads are available in five versions:
- Single-image ads allow one image and text, including the headline, description, introduction, optional CTA (call-to-action), and, if desired, alternate image text.
- Carousel ads let you post several images in a single ad formatted to allow recipients to scroll through multiple, successive images.
- Video ads often use existing content from your LinkedIn page or can be brand new.
- Single job ads advertise a job opportunity.
- Event ads advertise LinkedIn events like meetups and seminars.
Like all ads, Sponsored Content Ads are sold through auction so costs can vary greatly. Factors include the kind of ad and metric you choose, your industry and competition, as well as your bid and budget.
What Is the LinkedIn Ads Minimum Budget?
LinkedIn requires a minimum daily budget of $10, regardless of your ad type.
What is LinkedIn’s “Cost Per Click?”
Although the minimum amount to begin bidding for LinkedIn ads pricing is $2, the average CPC is $5.26.
Why Is My CPM So High on LinkedIn?
LinkedIn derives the CPM based on the competition you face and your type of product or service. You pay every time the platform serves your ad.
What is the Average Cost Per Lead on LinkedIn Ads?
A CPL (cost-per-lead) is the amount a company pays to obtain leads. Different industries pay varying amounts, depending on the industry itself. For example, the hardware and networking industry can be $150 per lead, while corporate services are $60 per lead.
Why Is Advertising on LinkedIn So Expensive?
LinkedIn is the go-to social media platform built exclusively for professionals from all industries. A significant target is the world of commerce: many users have business in mind as they scroll through their news feeds. They aren’t necessarily looking for entertainment. Instead, they likely want to enhance their careers or find out what their competition is doing.
Although LinkedIn ads pricing may cost more than advertising on other social media sites, there are three ways to manage the money you spend:
- If you choose to set bids, you determine the amount you pay for CPC and CPM, and you won't be charged more than your set bid. Bids cost a minimum of $2 every time someone clicks on your ad.
- You may find basing your costs on a daily budget works well for ongoing ad campaigns. The minimum amount you pay is $10 per day.
- You can choose the lifetime budget for campaigns that require a quick delivery with a set budget. Each active campaign cost begins at $10 times the number of days the campaign will run.
Is LinkedIn the Best Platform for Advertising?
As you compare the costs of various ads on different platforms, it’s important to consider your goal and the ad auction amount. Once you’ve determined your advertising budget, you launch your campaign by making a bid.
You’re competing with other companies that share your targeted prospects. Winning your bid depends on the popularity of the target market.
Can LinkedIn Raise Awareness of Your Business?
LinkedIn helps raise brand awareness of your business. It stretches your company’s range, adding followers and expanding engagement along the way.
Can LinkedIn Be Used to Generate Leads?
Lead generation takes a multi-pronged approach, including email marketing, SEO (search engine optimization), and LinkedIn marketing. Businesses spend over half of their marketing budgets on lead generation alone. And an impressive 85% of B2B marketers call lead generation a major content marketing goal.
LinkedIn calls itself the number-one lead-generation platform. They currently host a hefty 630 million professionals, and four out of five make or facilitate business decisions.
Are LinkedIn Ads Worth It?
Because LinkedIn targets the business world, you have access to a specific audience. Many businesses on the network could be looking for the product or service you offer.
While you may find a wider audience for less money with a Facebook ad, you won’t necessarily reach your ideal B2B market. So your ROI (return on investment) has the potential to be greater with LinkedIn Ads.
Which LinkedIn Ads Should You Choose?
Consider choosing the appropriate cost model based on your marketing goals:
- If it’s just brand awareness you’re after, choose CPM.
- If you want more visits to your site, choose CPC.
- If you’re primarily looking for sales, choose a CPA (cost-per-action) campaign. You pay only when your user performs your selected action, such as downloading an app, signing up for emails, or buying something.
Need additional help with LinkedIn Ads pricing or LinkedIn ads in general? Go here.
How Can You Effectively Advertise on LinkedIn?
There are many types of LinkedIn Ads and plenty of reasons for you to select one over the others. With so many ways to advertise your B2B firm on LinkedIn, it’s easy to get confused. That’s where Cleverly can assist you.
Cleverly will help your business grow by taking you through four essential steps:
- Identifying your ideal customer
- Writing and design your ads
- Launching your campaign
- Optimizing your ads for more reach and effectiveness
Cleverly offers three packages for managed LinkedIn ads based on your advertising budget and projected ad spend. Whether your business is at the starter, scale, or enterprise level, you’ll find plenty of benefits collaborating with us. Reach out to schedule a free consultation today. We’d welcome the opportunity to help you reach new leads and turn them into clients for your business.