How Much Do LinkedIn Ads Cost? Everything You Need to Know

LinkedIn ads cost

Are you a business owner eager to harness the immense potential of LinkedIn ads? You’ve heard the success stories—companies skyrocketing their sales and engagement. But as you start this journey, one burning question looms: How much will LinkedIn ads cost?

Whether you’re a pro marketer or new to the game, understanding LinkedIn ad pricing is crucial. It’s not about spending money but crafting a strategy that turns investments into impressive returns. 

With LinkedIn’s ad revenue on track to soar to $10.35 billion by 2027, the platform’s capacity for impact is evident. That’s a staggering growth, highlighting its potential for your business.

Are you ready to make your mark in this advertising landscape? Let’s explore the cost of LinkedIn ads, the factors influencing them, and tips for optimizing your spend.

Using LinkedIn Ads to Their Full Potential: Types, Benefits and Success Stories

linkedin ads

Before diving into the costs, it’s crucial to understand the different types of LinkedIn ads and their advantages. Here’s a quick rundown:

1. Sponsored Content

Think of these ads as seamless organic posts in your LinkedIn feed. They can be single images, videos, carousels, or event ads—perfect for grabbing attention. Sponsored content is versatile and engaging, making it a popular choice for many businesses.

Example360Suite, a business intelligence software provider, used Sponsored Content to promote its analytics solutions. The result? A remarkable conversion and engagement rate. Additionally, their email follow-up campaigns using LinkedIn data generated open rates of over 50%.

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2. Sponsored InMail

Imagine sending personalized messages directly to your audience’s LinkedIn inbox. That’s sponsored InMail for you. It’s perfect for direct engagement, event invites, and customized offers. 

Example: Matmatch used Sponsored InMail to connect with potential customers and generated around 1,000 qualified leads. It increased its supplier pipeline 10x and reduced the cost per lead by more than 50%.

3. Text Ads

These short, concise ads appear on the right-hand sidebar or at the top banner of the LinkedIn homepage. They are designed to capture attention with a compelling headline, brief description, and a compelling call to action.

Example: London Business School (LBS) used LinkedIn Text Ads to promote executive education programs. Their multi-format campaign increased ad exposure frequency by 10x and reduced the cost per lead by 9%.

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4. Dynamic Ads

These personalized ads adapt based on the viewer’s profile, making them suitable for increasing engagement. Dynamic Ads are ideal for driving traffic and promoting your brand by delivering relevant content to each user.

Example:  LinkedSelling, a sales training company, used Dynamic Ads to target sales professionals with personalized content. This approach led to over 820 new leads and a 7:1 return on ad spend (ROAS) in just two months.

5. Display Ads

These interactive ads extend your reach beyond LinkedIn and appear on other websites within LinkedIn’s Audience Network. 

Example: Dell surpassed targets for impressions, views, and engagement with a CTR of 0.52%, almost double the industry average. Additionally, the revenue pipeline for digitally engaged audiences was significantly higher.

Pro-Tip: Embed Lead-Gen forms in your ads to raise conversion rates by 2-3%. These forms help gather, track, and follow up with potential customers.

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How Much Does It Cost to Advertise on LinkedIn?

linkedin app

LinkedIn ads are renowned for their precision targeting, but what does this accuracy cost you? Let’s break it down:

1. CPC (Cost Per Click)

On average, expect to pay around $5-$10 per click. While this might seem steep compared to other platforms, LinkedIn’s targeted audience justifies the cost. 

CPC is ideal for driving traffic to your website or landing page. You only pay when someone clicks on your ad, making it cost-effective for lead generation. 

For instance, a campaign targeting C-suite executives in the tech industry may cost more per click but often yields higher-quality leads, translating to a better ROI.

2. CPM (Cost Per 1000 Impressions)

The cost of these LinkedIn ads ranges from $6 to $10. CPM is ideal if your goal is to increase brand awareness rather than drive immediate clicks. 

For instance, a tech startup looking to build brand recognition can profit from CPM campaigns.

3. CPS (Cost Per Send)

Expect to pay about $0.80 per sponsored mail sent. This method is effective for personalized outreach campaigns. Imagine inviting prospects to a webinar or sending exclusive content to their inbox. This customized touch can boost engagement and conversion rates.

4. CPV (Cost Per View)

The average CPV for video ads on LinkedIn is around $0.06. Video ads are engaging and provide a powerful medium to tell your brand story. A compelling video can captivate your audience, leading to higher engagement rates and better brand recall.

LinkedIn ads might cost more, but they are more effective for lead generation than platforms like Facebook and Twitter. LinkedIn’s advanced targeting capabilities and professional audience can be more valuable for your business despite the higher costs.

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Cracking the Code: What Drives LinkedIn Ad Costs?

Before you launch your LinkedIn ad campaign, it’s crucial to understand the factors that can impact your ads budget and effectiveness. Here are the key elements you must consider:

1. Target Audience

Targeting specific age groups, genders, or education levels can increase costs due to higher competition for niche audiences.

  • Job Titles and Industries: Narrowing to specific job titles or industries can increase ad costs. For example, targeting “CEOs in healthcare” will be more expensive than targeting “employees in marketing.”
  • Geography: Ad costs can also vary based on geographic targeting. Ads targeting high-income countries like the USA or the U.K. have higher CPC and CPM rates than those targeting developing countries.

Pro-Tip: Precise targeting helps your ads reach the most relevant audience but can increase costs. Balancing broad and narrow targeting can optimize your ad spend.

2. Bidding Strategy

LinkedIn offers both manual and automated bidding options:

  • Manual Bidding: You set the highest bid, giving you control over how much you will pay per click or impression. This approach can be beneficial if you understand your audience and competition.
  • Automated Bidding: This method allows LinkedIn to adjust your bids to get the best results within your budget. It uses LinkedIn’s algorithm to optimize your bids. 

Pro-Tip: If you’re new to LinkedIn ads, start with automated bidding. As you gather more insights, switch to manual bidding to have more control over your budget.

3. Ad Relevance Score

LinkedIn, like Facebook, uses a relevance score to determine how well your ad matches the interests of your target audience. Ads with higher scores cost less because LinkedIn favors showing content users are likelier to engage with. 

  • Engagement: High CTR and interaction with your ads boost your relevance score.
  • Feedback: Positive feedback on your ads can improve your score, while negative feedback can decrease it.

Pro-Tip: Always track your relevance score and make adjustments to improve ad engagement. Test and iterate to find out which messages resonate most with your audience.

4. Timing and Competition

Have you ever wondered why your ad costs fluctuate even with the same budget? The competitiveness and timing of the ad auction could be the reason.

  • Ad Auction System: Your ad competes with others targeting the same audience. The more advertisers bid for the same audience, the higher the costs.
  • Peak Times: During industry events or end-of-quarter rushes, more advertisers vie for attention, driving up costs. It’s due to increased demand for ad space, leading to higher bids.

Pro-Tip: Plan your campaigns around peak times and run ads during off-peak periods to reduce costs. Also, analyze successful ad timings to optimize your posting schedule.

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How to Optimize Your Ad Spend on LinkedIn?

You must be strategic about spending to get the most out of your LinkedIn ad budget. Here are some actionable tips to ensure your ad dollars are well-spent:

1. Define Precise Objectives

Clear objectives are the foundation of any successful ad campaign. Start by setting SMART goals—Specific, Measurable, Achievable, Relevant, and Time-bound.

Ask yourself, what are you seeking? Is it brand awareness, lead generation, conversions, or engagement? This clarity will guide your ad strategy and help you measure success.

2. Use LinkedIn’s Matched Audiences

LinkedIn’s Matched Audiences feature is a powerful tool for reaching relevant prospects. You can retarget website visitors, upload contact lists, or reach lookalike audiences. Combine Matched Audiences with Insight Tag to track and examine your audience’s behavior on your website.

3. A/B Testing

It allows you to experiment with different ad copies, images, and CTAs to see what resonates best with your audience. Even minor tweaks can lead to notable progress in performance. Use LinkedIn’s analytics to track performance and optimize your ads.

4. Track and Adjust

LinkedIn’s Campaign Manager provides real-time performance metrics that can inform your strategy. Set up regular check-ins to review your campaign performance. Look at key metrics such as click-through rates, conversion rates, and cost per conversion.

5. Leverage A.I. Tools

Use AI-powered tools to create engaging, tailored content that always hits the mark. For instance, Predis.ai helps you craft compelling LinkedIn ad copy variations that resonate with your audience. This smart approach boosts your ad relevance score and enhances engagement rates.

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Wrapping Up

Understanding LinkedIn ad costs goes beyond just numbers. It’s about assessing various pricing factors, setting a strategic budget, and applying best practices to achieve a higher ROI. Experiment with different ad types to discover what works for your business.

That’s where Predis.ai comes in—a secret weapon in your marketing toolkit. It helps you create stunning ad campaigns that capture audience attention and drive engagement like never before. With its AI-driven insights, you can optimize your content, ensuring your ads perform at their peak.

Ready to see your LinkedIn ad campaigns soar? Sign up with Predis.ai today and watch your business grow to new heights!

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Tanmay Ratnaparkhe

Co-founder @Predis.ai, 2X Entrepreneur, tech enthusiast, and SaaS expert, specializing in Instagram marketing and AI. With a knack for leveraging technology for marketing success, they share valuable insights and strategies to boost your digital presence and productivity.