Advertising on LinkedIn: How Much Do LinkedIn Ads Cost? | Piranha

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Advertising on LinkedIn: How Much Do LinkedIn Ads Cost?

By piranha

4th March 2024

LinkedIn, the world’s premier professional networking platform, has evolved into a powerful hub for digital advertising. With over 1 billion users from 200 different countries and regions worldwide, LinkedIn offers access to professionals across a range of industries. Unlike other social media platforms, LinkedIn focuses on professional content, making it an ideal space for B2B advertising. Businesses use LinkedIn ads to reach specific professional audiences, enhance brand visibility, and generate leads.

LinkedIn Advertising Costs

The cost of LinkedIn ads varies based on several factors, including ad format, bid type, and the competitiveness of your target audience. LinkedIn operates on a bidding system, where advertisers set a budget and bid for ad space.

Factors Influencing Ad Costs

  1. Bid Strategy: When a campaign is first set up, you’ll be able to choose which bid strategy you want to run with out of the three options. These three options include maximum delivery (an automated strategy where LinkedIn tries to get you the most results for your budget), target cost (get the most results whilst staying near your cost goal), or manual bidding (you can choose how much you want to spend per action, for example, website clicks).
  2. Target Audience: Highly sought-after demographics may cost more.
  3. Ad Quality: A better expected CTR can lower overall costs.
  4. Ad Format: There’s a difference in price between all the ad formats e.g., Message Ads are one of the more expensive ad types.
  5. Campaign Objective: Whether you’re targeting landing page views or something more specific like lead form completions, it is going to have a big influence on the price you pay per conversion.

Whilst there’s no straight answer to the question “How much will LinkedIn ads cost?” it’s recommended to set a daily budget of at least £10, so that’s around £300 per month. The average CPC generally ranges from £2 to £5, and the average CPM (cost per thousand impressions) is a bit more complicated and can be anywhere from £6 up to £30+, as the more niche your audience is, the higher the CPM will be.

Setting Up a LinkedIn Advertising Budget

A strategic approach to budgeting is important for LinkedIn advertising. Once you’ve made a clear budget, LinkedIn will not exceed it. You can always start low, analyse the results you get, and gradually increase the budget if the ads are working for you. Here at Piranha, we’re consistently monitoring and optimising our clients’ ads to make sure they get the most for their budget. Here are the different ways you can set up a budget:

  • Daily Budget: The minimum amount you’re willing to spend each day.
  • Total Budget: The overall amount allocated for a specific campaign.
  • Bid Amount: The maximum you’re willing to pay per action or thousand impressions.

 

Types of LinkedIn Ads:

There are several types of LinkedIn ads, and your choice can significantly influence the effectiveness of your campaign, making it essential to carefully consider which ad format aligns best with your marketing objectives.

Single Image Ad: These ads display a single, compelling image directly in the LinkedIn feed. They are excellent for straightforward, impactful messaging.

Document Ad: Ideal for sharing rich content, Document Ads allow the promotion of both gated and ungated documents directly in the user’s feed. This format facilitates content consumption without leaving LinkedIn.

Carousel Image Ad: With a series of swipeable cards, Carousel Image Ads tell an interactive story in the LinkedIn feed. Each card can be customised with different content and landing URLs, offering a dynamic storytelling approach.

Video Ad: These ads captivate audiences with engaging video content, creating a memorable and interactive user experience.

Text Ad: Text Ads appear at the top of the page or in the right column on desktop views. They are straightforward to set up and effective for reaching target audiences quickly.

Dynamic Ad: Dynamic Ads boost conversion rates by personalising content based on LinkedIn profile data. They typically appear in the right column of the desktop view and are tailored to each member.

Sponsored Messaging: This format includes Message Ads and Conversation Ads, delivered directly in LinkedIn Messaging. These ads reach prospects when they are active on LinkedIn, enhancing engagement and conversion potential.

Partnering with Piranha Digital for LinkedIn Ad Excellence

Navigating LinkedIn advertising requires expertise and experience, something Piranha Digital proudly offers. By entrusting your LinkedIn campaigns to us, you benefit from:

  • Customised strategies aligned with your specific business goals.
  • Expert management of your advertising budget for maximum efficiency.
  • In-depth understanding of LinkedIn’s algorithms and user behaviours.

Partnering with Piranha allows you to focus on your core business, confident that your LinkedIn advertising is in expert hands. If you are ready to discuss a LinkedIn advertising campaign for your business, contact the team today, and let’s set up a meeting.

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