LinkedIn is one of the most popular networking sites today, where you can meet and interact with different professionals from all around the world, learn new skills, strengthen professional relationships, find eligible candidates to work for your company and catch an audience for your business as well.
Many companies use LinkedIn to advertise their work and business to gain audience traffic to their websites and increase their followers and, ultimately, their revenue.
Advertising on LinkedIn is an easy process; however, it is no way free. Enterprises have to pay different amounts depending on the kind of advertising campaigns they would like to purchase for their company.
Go through this article if you would like to learn more about the cost of advertising on LinkedIn as well as how you can work smartly to get a grip on your ad spending.
Different LinkedIn Ad Bidding Options
LinkedIn offers 3 different kinds of bidding options to its users who want to advertise their business.
Cost-per-click (CPC)
This option is one of the most favorite kinds for you if you would like to get worthy traffic to your page and earn leads. In the CPC bidding, you pay when people click on your LinkedIn ad.
Cost-per-impression (CPM)
In this type, you have to pay for every 1000 impressions. When someone views your ad on LinkedIn, you have to pay for them to see it, however, they cannot interact with it. This type of ad drives awareness for your brand.
Cost-per-send (CPS)
This type of bidding option is used when you send information through sponsored InMail. The advantage of using this model is that your information and details go directly to leads in their LinkedIn InMails.
You can use these different bidding models for your LinkedIn campaign. You must note that these models will have an effect on the price and cost of your campaign and therefore, before running a campaign, you should be fully aware of the type of model you would like to use.
Specific Bidding Options For Specific Ads
It is important to know that there are different bidding options available for specific ads you might want to display for your brand advertising campaign.
Sponsored Content
The sponsored content ad would be available for bidding options like CPC and CPM.
Text Ads
These would also be available for CPC and CPM bidding options.
Sponsored InMail
The sponsored InMail ad campaigns are specific only to the CPS bidding option.
Cost For Advertising On LinkedIn
The cost for advertising on LinkedIn varies depending on the advertiser. However, LinkedIn requires businesses to bid a minimum of $2 for CPC and CPM campaigns.
The average cost paid by companies to LinkedIn for different bidding options is given below.
- CPC- businesses pay an average of $5.26 per click
- CPM- businesses pay an average of $6.59 per 1000 impressions
- CPS- businesses pay $0.80 per send
Factors Influencing Your LinkedIn Advertising Cost
Different factors determine your LinkedIn advertising cost.
Target Audience
Campaigning ads on LinkedIn is like a competition since you are competing with different advertisers to get your particular ad seen. If you can target an audience in high demand, then your costs will increase because of that audience’s value and increased completion for that audience’s attention.
Bid
Another factor that determines your advertising cost on LinkedIn is your bid. Keep in mind that you will never exceed your bid, however, you will have to pay a portion of it. The reason for this is that LinkedIn’s ad auction makes the winner of the auction pay 1 cent more than the next highest bid. This is known as the “second-price-auction”.
Ad Relevance Score
The ad relevance score is a vital determinant in LinkedIn advertising cost. When you have a high ad relevance score, your expenses can get lowered. This is because LinkedIn wants to serve its users with relevant and engaging ads only.
Objective
You will be priced depending on the objective you want to achieve. Each objective has a chargeable click behavior that depends upon how your leads react and what you hope to achieve. If you select a different objective, the cost that is charged to you shall change.
Controlling Your Ad Spending On LinkedIn
There are multiple ways by which you can control the amount you spend on LinkedIn Ads.
Total Budget
This is one of the best models if you want a campaign to be delivered fast for a specific budget. To run a campaign with a total budget, you must spend a minimum of $10 per campaign.
Daily Budget
Daily budgets are best for you if you want your campaign to always be on and running. For this budget model, you would have to pay $10 per campaign as well.
Setting Bids
This model allows you to set the total amount you are willing to pay for clicks, impressions, and other features. You never have to pay more than the bid amount. For this model, you can bid a minimum of $2 for each click.
To make good use of your money while campaigning for ads on LinkedIn and getting the audience’s attraction, you must decide what plan suits you the best. The goals of your campaign must complement the pricing model you choose.
Related Questions
Do LinkedIn ads work?
Yes, LinkedIn ads work pretty well. These ads can convert leads three times better than some other major ad platforms. Furthermore, LinkedIn members have double the purchasing power of a usual user on the internet.
Which is better; LinkedIn ads or Google ads?
LinkedIn allows marketers to target decision-makers and key audience members in a variety of effective ways. LinkedIn is an excellent digital ad platform for B2B companies looking to connect with decision-makers. On the other hand, Google Ads works best for B2C companies who are trying to widen their reach in the market.
What kind of ads work best on LinkedIn?
Text Ads work best on LinkedIn. They show up on the top and right-hand side of LinkedIn’s desktop feed and are a good option if you want to build strong leads with a professional demographic.
