How Much Do LinkedIn Ads Cost?
Last Updated on: 13th November 2024, 06:42 am
LinkedIn is an amazing place to generate leads for your business but they are also one of the most expensive places to advertise.
In this post I’ll help you understand the different factors affecting your LinkedIn Ads cost – and show you what to do to make the most with the least.
Let’s take a look!
How Much Do LinkedIn Ads Cost in 2024?
On average, expect to pay $3 (and up) per click on LinkedIn Ads.
Similarly to Facebook Ads and Google Ads, the cost of LinkedIn Ads has also increased in the last few years. The exact cost depends on the campaigns and industries, but WebFX’s data states that you can expect to pay the following:
- $2.00 – $4.00 per click on LinkedIn Ads
- $5.01 – $8.00 per 1000 impressions
- $0.26 – $0.50 per mail in Sponsored InMail campaigns
Keep in mind that $2 is the minimum bid per click on LinkedIn Ads. Of course, you’ll likely see sharper competition than that, so I always tell my clients that $5-$6 for most industries is an expected figure for well-optimised ads.
If you’re trying to run LinkedIn Ads without an experienced LinkedIn Ads Manager, you’ll likely see even higher figures.
What Factors Affect the Cost of Your LinkedIn Ads?
Understanding the Biggest Factor for LinkedIn Ads Costs: Bidding Type and Amount
Now, I know what you want to say: “But, Claire – how can I know what to bid if I don’t know what the average cost is?”
And while I wish I could give you a single answer, it’s really not that simple.
Fortunately, when you insert all the details about your targeting and your ad, you’ll see LinkedIn Ads’ calculator showing you the forecasted results based on your bid:
With slight experimentation, you can quickly determine the optimal bid in the LinkedIn Ads auction.
When it comes to bids, your ad type will determine whether the LinkedIn Ads cost will be shown through CPC (cost per click), CPM (cost per 1000 impressions), or CPS (cost per send).
Of course, each depends on…
Your Target Audience
Your target audience is the crucial factor. It determines the value you’re expected to get from each lead and the competition in the ad auction.
The demographics matter; job titles, functions, seniority, industries – the more senior the stakeholders and the more “affluent” the industry, the more you can expect to pay for each click.
Similarly, the company size can also increase the cost of your LinkedIn Ads. The same goes for geographic areas, depending – again – on their economic status. For example, if you’re an accounting firm using LinkedIn Ads to target enterprises, your CPC would be higher.
Finally, if you use targeting based on skills and interests, the competition will vary which can increase or decrease your costs.
How Ad Relevance Score Affects Your LinkedIn Ads Cost
Similarly to how Google Ads uses its Quality Score, LinkedIn Ads has the Ad Relevance Score which gauges how well your ad matches the audience’s interests.
If they engage with your ad more often, your costs might be reduced because you’re better serving their interests than an ad that’s only hearing crickets.
Campaign Objectives
Are you trying to generate high-value PPC leads, drive website traffic, or just increase brand awareness?
The closer to the conversion your ad is supposed to be, the more it will cost.
Again, it’s all about the perceived value – if LinkedIn knows you need to run 5 more ads to capture one lead type, you’ll pay less. But if you plan to convert them with this specific ad, you’ll pay more.
At the end of the day, it all balances out – however, this is where the rest of your marketing mix comes into play. This is why I always suggest reverse-engineering your goals, instead of trying to make them fit one specific platform.
Ad Formats and LinkedIn Ads Cost
No ad format on its own is more or less expensive. However, some formats naturally stimulate higher engagement, increasing your Relevance Score in turn – and decreasing your LinkedIn Ads costs.
For example, the Sponsored Content ad format appears in the LinkedIn feed and often looks like an organic post. If it’s a good one, people will engage with it. Similarly, Carousel and Video ads get the same effect because people have to scroll or watch, i.e., engage with them.
Text Ads, on the other hand, are displayed in the sidebar or at the top of LinkedIn pages. It’s clearer to users that it’s an ad, which might mean lower engagement. On the other hand, they’re perfect for showcasing a special offer in a retargeting campaign (more on that in a second).
You could also opt for Dynamic LinkedIn Ads, which are personalised and shown on the homepage.
Finally, Sponsored InMail Ads get delivered directly to users’ inboxes like Sales Navigator messages. They can be very effective in SaaS sales scenarios.
The list goes on! With LinkedIn Ads evolving, new ad types are constantly being added. However, the main cost factor is the engagement.
Competition
If you’re targeting industries like technology, finance, and healthcare, you’ll likely see higher LinkedIn advertising costs. If your competition is fierce, it pays to be smart in your advertising approach to reduce expenses and see higher returns!
What Can You Do to Lower Your LinkedIn Ads Costs?
Fine-Tune Your Targeting
The more precise you are, the better. Since LinkedIn is very much an account-based advertising platform in its approach (focus on the perfect-fit leads you can start conversations with immediately, as opposed to casting a broad net), make full use of its features.
First, look at your existing leads. What are the most profitable accounts like? What are their company sizes, industries, stakeholders, and specifics?
Be Specific with Your ICP Targeting to Reduce the Cost of LinkedIn Ads
For example, if you’re a consultant using LinkedIn Ads to target project managers in IT companies, now I want you to look at the specific sub-sets of project managers in specific types of IT companies.
It could be project managers in cybersecurity companies. Then, look at their specific skills or interests: are they interested in agile development? Knowledgeable about cloud computing?
Flesh out the Ideal Customer Profile (ICP), so you know how to reach the right people with your LinkedIn Ads. Remember: the more relevant your ad is, the lower the cost!
Engagement Is Vital for Reducing Your LinkedIn Ads Cost
Once you’re clear on the most profitable leads for you, it’s time to think about how you will engage them with your ads. Offers are great when they’re at the bottom of the funnel, but if you’re starting earlier in their purchasing journey, have a follow-up plan.
For example, perhaps you capture their interest with a LinkedIn Carousel Ad targeted to their pain points when it comes to project management in a cybersecurity company. Direct them to a specialised landing page that further draws them into your advertising funnel.
Don’t be afraid to shy away from the known and step into the relatable territory with personable ad copy or witty visuals (yes, memes are allowed – in certain cases). Remember that you’re always talking to people, even in B2B: your ads are a way to start profitable conversations!
Monitor Your LinkedIn Ads and Optimise for the Most Engaged ICPs
As you monitor your ads, and presuming you’re targeting the most profitable ICPs, look for the sub-segments that engage with your ads frequently.
Then, narrow down your targeting until you’re 100% certain that the right offer is resonating with the right people.
Look at metrics like CTR and engagement rate (comments, likes, shares – especially on Sponsored Posts). Make sure to track conversions from LinkedIn Ads!
The Power of Remarketing in Reducing Your LinkedIn Ads Cost
If someone has already engaged with your business (be that through a website visit, LinkedIn engagement, or one of the previous ads), consider running a remarketing campaign.
Since you’re targeting a more engaged audience, your ads are more likely to perform better, giving you a better return on ad spend!
LinkedIn Ads gives you plenty of retargeting options:
- Website retargeting – Target LinkedIn users who have visited your website. For example, if someone visits your services page but doesn’t book a call, you can retarget them with ads highlighting testimonials.
- Video retargeting – Reach out to users who have watched your LinkedIn video (ads). You can create custom audiences based on video engagement (e.g., people who have watched 75% of your video get a follow-up ad offering a free trial).
- LinkedIn Lead Gen Form retargeting – Remind those who interacted with your lead gen forms to fill them out.
- Engagement retargeting – Retarget people who already engaged with you. For example, they liked your post about an upcoming webinar, so you retarget them with a registration ad.
- Account-based retargeting – Engage key decision-makers at companies with the right ads!
- Email contact retargeting – If you have a list of prospects who have signed up for your newsletter, you can retarget them with ads promoting your latest product.
Essentially, no matter where they engaged with you first, as long as you have someone’s email address, you can reach them through LinkedIn.
Remarketing on LinkedIn Ads is truly one of my favourite tactics, and it’s cost-effective, too! For example, I recommend a minimum budget of $300-$600 per month for retargeting, which puts your daily budget at only $10!
LinkedIn Ads: Well Worth the Cost
It’s true – LinkedIn Ads aren’t the cheapest option in the PPC world. However, with the advanced targeting capabilities and plenty of cost-effective methods you can leverage, the cost of $5-$6 per click is more than worth it.
After all, your goal is to find the ideal leads. Not the people who will “consider your offer,” or the people who just say “Hmm, we’ll get back to you.”
Instead, with the right targeting and the right tactics, you can reach the leads that will say:
“Phenomenal! Where do we sign up?”
If you need assistance in setting up your LinkedIn Ads for maximum conversions, contact me. With over 15 years of experience in PPC, I’ve helped clients generate millions of dollars in additional revenue.
And today, it’s time for us to make LinkedIn Ads work for your business!
