2023 LinkedIn Ads Guide: Cost, Steps & Cheatsheet

9 May

LinkedIn advertising campaigns are an effective way for businesses to reach their target audience and increase brand awareness. With different types of LinkedIn ads available, including follower ads, video ads, spotlight ads, sponsored content, and message ads, running ads on LinkedIn can help you reach your goals in a very targeted way. However, it is worth noting that in our experience, LinkedIn adverts can be very expensive.

Ad specs for LinkedIn ads vary depending on the type of ad being run. However, all ad formats are designed to fit seamlessly into the LinkedIn feed and provide a non-intrusive experience for users. This makes it easier for businesses to grab the attention of LinkedIn members without disrupting their browsing experience.

One of the most significant benefits of using LinkedIn advertising is that it allows companies to reach a larger audience of LinkedIn members. This is especially useful for businesses looking to promote their company page or drive sales. Messaging can be targeted towards specific profiles based on factors such as job title or industry.

To get started with a LinkedIn ad campaign, businesses must first create an account on the platform's advertising pages. From there, they can choose which type of ad format they would like to use and set up targeting parameters based on their desired audience.

When creating a LinkedIn ad campaign, it's essential to keep in mind that sponsored content should provide value to users rather than come across as overly promotional. This will ensure that users engage with the content positively and are more likely to take action after seeing the ad.

Key LinkedIn advertising stats for 2023:

Total potential reach of ads on LinkedIn: 900.2 million
LinkedIn ad reach vs population: 11.2%
LinkedIn ad reach vs total web users: 17.5%
Female Linkedin ad reach: 43.7%
Male LinkedIn ad reach: 56.3%
Source: https://datareportal.com/essential-linkedin-stats

Understanding Advertising on LinkedIn

Targeting Specific Audiences with LinkedIn Advertising

LinkedIn advertising offers businesses a unique opportunity to reach highly targeted audiences. With options such as job title, industry, company size, and location targeting, advertisers can ensure that their ads are seen by the right people. Sponsored Content is the most common type of ad on LinkedIn, appearing in users' feeds as native ads. These ads blend seamlessly into the user's feed and offer an unobtrusive way to promote content.

Sponsored InMail is another effective form of LinkedIn advertising. This type of ad allows businesses to send personalised messages directly to users' inboxes. Because these messages are highly targeted based on factors such as job title and industry, they tend to have high open rates and engagement rates.

Text Ads are small ads that appear on the right-hand side of LinkedIn pages. While they may not be as visually appealing as Sponsored Content or Sponsored InMail, they can still be effective for reaching specific audiences based on job function, industry, and geography.

Using Personalised Information for Dynamic Ads

Dynamic Ads take personalisation one step further by using information from users' profiles to create highly relevant ads. For example, an advertiser could use a user's profile picture in their ad or include their name in the ad copy. These types of ads tend to have higher click-through rates because they feel more personalised and tailored to the user's interests.

Tracking Performance Metrics for LinkedIn Ads

One of the benefits of advertising on LinkedIn is the ability to track performance metrics such as clicks, impressions, and conversions. Advertisers can see how many people clicked on their ad or saw their ad (impressions) and how many people took a desired action such as filling out a form or making a purchase (conversions).

By analysing these metrics, advertisers can make data-driven decisions about which types of ads are working best for them and adjust their strategy accordingly.

Types of LinkedIn Ads: Bid Types and Ad Formats

Display Ads: Banner Ads That Appear on LinkedIn Pages

Display ads are banner ads that appear on the side or top of LinkedIn pages. They come in different sizes and formats such as static images or animated GIFs. Display ads are ideal for promoting brand awareness or driving traffic to landing pages.

One of the benefits of display ads is that they provide a visual way for brands to showcase their products or services. Display ads also allow advertisers to target specific audiences based on job titles, company sizes, industries, and other demographic factors. This targeting helps to ensure that the ad is seen by the right people.

Dynamic Ads: Personalised Ads Based on User Data

Dynamic ads use user data to create personalised ads that appear on the right-hand side of the page. These ads are designed to be highly relevant and engaging for each user. Dynamic ads can be used for a variety of purposes such as promoting job openings, driving event registrations, or increasing brand awareness.

One of the benefits of dynamic ads is that they allow advertisers to create highly personalised campaigns without spending a lot of time or resources. Dynamic ads also provide detailed analytics that allows advertisers to track engagement and measure ROI.

Bid Types: Cost per Click (CPC) and Cost per Impression (CPM)

LinkedIn offers two bid types for its ads: cost per click (CPC) and cost per impression (CPM). CPC means that advertisers only pay when someone clicks on their ad. CPM means that advertisers pay for every 1,000 impressions, regardless of whether anyone clicks on the ad.

One advantage of CPC bidding is that it allows advertisers to control their costs more effectively. Advertisers can set a maximum bid amount and only pay when someone clicks on their ad. This helps to ensure that they are getting value for their money.

One advantage of CPM bidding is that it allows advertisers to reach a wider audience without having to worry about click-through rates. Advertisers can choose to target specific audiences based on location, job title, industry, and other demographic factors. This targeting helps to ensure that the ad is seen by the right people.

Selecting an Ad Format and Objective for Your LinkedIn Campaign

Define Your Campaign Objective and Goals

Before selecting an ad format for your LinkedIn campaign, it is crucial to define your campaign objective and goals. Your objectives will guide you in choosing the right ad format that aligns with your goals. Are you looking to increase brand awareness or generate leads? Knowing your objective will help you determine whether sponsored content or sponsored InMail is the best option.

Ad Targeting

One of the benefits of advertising on LinkedIn is its powerful targeting capabilities. You can reach your ideal audience by selecting targeting criteria such as job title, company size, and location. By narrowing down your target audience, you can ensure that your ads are being shown to the people who are most likely to be interested in what you have to offer.

Targeting Criteria

When selecting targeting criteria for your LinkedIn campaign, consider factors such as job function, seniority level, industry, company size, and location. For example, if you're promoting a software product designed for HR professionals, you might want to target individuals with job titles like "HR Manager" or "Recruiting Coordinator." If you're promoting a B2B service that's only available in certain locations, make sure to narrow down your target audience based on location.

Multiple Ad Formats

Consider using multiple ad formats for different objectives within the same campaign. Sponsored content is great for increasing brand awareness while sponsored InMail is better suited for lead generation. Using both formats can help maximise the effectiveness of your campaign.

Track Clicks and Other Metrics

Once your LinkedIn campaign is up and running, it's important to track clicks and other metrics so that you can measure its success. This will help identify which ads are performing well and which ones need improvement. Use this data to adjust your strategy accordingly.

Creating Text and Dynamic Ads for Better Performance on LinkedIn

LinkedIn is a powerful platform for reaching a targeted audience with your message. Whether you're promoting a product or service, or simply trying to build brand awareness, LinkedIn text ads and dynamic ads can help you achieve your goals. In this post, we'll discuss how to create effective ad copy for LinkedIn that will drive better performance.

Focus on Benefits in Your Ad Copy

When creating ad copy for LinkedIn, it's important to focus on the benefits of your product or service. Rather than simply listing features or specifications, highlight how your offering can solve a problem or make life easier for your target audience. For example, if you're advertising a project management tool, don't just list its features – instead, talk about how it can help teams streamline their workflows and complete projects more efficiently.

Using Dynamic Ads to Personalise Your Message

Dynamic ads on LinkedIn allow you to personalise your message based on the viewer's job title and function. This means that you can create multiple versions of an ad that are tailored specifically to different roles within your target audience. For example, if you're targeting both marketing managers and sales directors with an ad for your CRM software, you could create two versions of the ad – one that highlights the benefits of the software for marketers (such as lead tracking and segmentation), and another that emphasises its value for salespeople (such as pipeline management and forecasting).

Creating Single Image Ads for LinkedIn

Eye-Catching Featured Image: The Key to Successful Single Image Ads

Single image ads are a popular ad format on LinkedIn that allows advertisers to showcase their products or services using a single static image. Unlike carousel ads, which allow multiple images to be displayed in a single ad unit, single-image ads are more straightforward and can be created quickly using LinkedIn's ad platform. When creating a single-image ad, it's important to choose an eye-catching featured image that will grab the attention of your target audience and encourage them to click through to your landing page.

The featured image is the centrepiece of your single-image ad. It should be visually appealing and relevant to your product or service. A high-quality, professional-looking photo can make all the difference in catching someone's eye as they scroll through their feed. Consider using bright colours or bold text overlays to make your featured image stand out even more.

LinkedIn Profile Data: Targeting the Right Audience for Your Single Image Ad

LinkedIn's targeting options allow you to use profile data to reach the right audience for your single-image ad, ensuring that your impressions are seen by people who are most likely to be interested in what you have to offer. This means that you can target users based on factors such as job title, company size, industry, location, and more.

By using LinkedIn profile data for targeting, you can ensure that your single image ad is seen by people who are most likely to be interested in what you have to offer. This not only increases the likelihood of clicks and conversions but also ensures that you're not wasting money on impressions served to people who aren't part of your target audience.

Single Image vs Video Ads: Which One Works Better?

While video ads can be more engaging than static images, single-image ads can still be effective in driving clicks and conversions on LinkedIn. In fact, according to LinkedIn's own research, "single-image Sponsored Content campaigns drive 20% more clicks on average than their video counterparts."

One reason for this could be that single-image ads are less intrusive and easier to consume than video ads. They also load faster and don't require users to turn on sound, making them a more convenient option for users who are browsing LinkedIn during work hours.

Using Instapage for LinkedIn Ads

Custom Landing Pages for LinkedIn Ads with Instapage

Creating a successful LinkedIn Sponsored InMail campaign requires more than just sending out messages to your target audience. You need to capture their attention and lead them towards a specific action, such as filling out a form or signing up for a free trial. This is where landing pages come in. A landing page is a standalone web page that is designed to convert visitors into leads or customers.

Instapage is one of the leading landing page builders on the market and can be used for LinkedIn Ads campaigns. With Instapage, you can create custom landing pages that are tailored to your specific audience and campaign goals. The platform offers a drag-and-drop interface, making it easy to create professional-looking landing pages without any coding knowledge.

The Benefits of Using Instapage for LinkedIn Ads

One of the main benefits of using Instapage for LinkedIn Ads is the ability to track your campaign's performance in real time. You can see how many people clicked on your ad, how many converted on your landing page, and what actions they took after converting. This data allows you to optimise your campaigns for better results and higher ROI.

Another benefit of using Instapage is the variety of templates available. There are over 500 templates to choose from, including ones specifically designed for lead generation and conversion optimisation. These templates are fully customisable, allowing you to tailor them to your brand's look and feel.

Using Instapage also allows you to take advantage of advanced features like A/B testing and dynamic text replacement. A/B testing involves creating two versions of your landing page with different elements (such as headlines or images) and seeing which one performs better. Dynamic text replacement allows you to personalise your landing pages based on the user's search query or other targeting criteria.

How to Use Instapage for LinkedIn-Sponsored InMail Campaigns

To use Instapage for LinkedIn Sponsored InMail campaigns, you first need to create a landing page that is tailored to your campaign goals. This could be a lead generation form, a product demo video, or any other type of content that encourages the user to take action.

Once you have created your landing page in Instapage, you can then connect it to your LinkedIn Ads account. To do this, go to the "Campaign Manager" section of LinkedIn Ads and select "Sponsored InMail." From there, you can create a new campaign and choose the option to use an external URL for your landing page.

Copy and paste the URL of your Instapage landing page into the appropriate field and save your changes. Your Sponsored InMail campaign will now direct users to your custom landing page instead of a generic LinkedIn profile or website.

LinkedIn Bidding Options: Understanding Your Options

Understanding Your LinkedIn Bidding Options

Bidding options are essential to any advertising platform. They allow advertisers to control their ad spend and optimise their campaigns based on their objectives. LinkedIn, as a leading professional social media platform, offers different bidding options for its advertisers. In this section, we will discuss the different bidding options that LinkedIn offers.

Suggested Bid and Bid Auction

LinkedIn provides a suggested bid for each ad placement, which is the amount that they recommend an advertiser should bid to win an auction. The actual cost of the ad depends on other advertisers' bids, relevance score, and ad quality. Advertisers can choose between manual or automatic bidding in the bid auction.

Manual Bidding

Manual bidding allows advertisers to set their maximum bid for clicks (CPC), impressions (CPM), or sends (CPS). This option gives advertisers more control over how much they want to spend on each ad campaign. Advertisers can also adjust their bids based on specific targeting parameters such as interests, demographics, job titles, and company size.

Automatic Bidding

Automatic bidding enables LinkedIn's algorithm to set bids automatically based on the advertiser's budget and objective. This option is ideal for those who want to maximise conversions while staying within their budget. Automatic bidding uses machine learning algorithms that analyse data from previous campaigns to optimise bids in real time.

Cost per Click (CPC)

Cost per click (CPC) is a bidding option where advertisers pay every time someone clicks on their ads. CPC is suitable for campaigns with conversion goals such as sign-ups or purchases since it charges only when someone takes action after clicking on an ad.

Cost per Impression (CPM)

Cost per impression (CPM) is a bidding option where advertisers pay every time someone views their ads. CPM is suitable for campaigns with brand awareness goals since it charges even if someone does not interact with an ad actively.

Cost per Send (CPS)

Cost per send (CPS) is a bidding option where advertisers pay every time someone sends their sponsored InMail message. CPS is suitable for campaigns with conversation goals since it charges only when someone initiates a conversation with an advertiser.

Other Bidding Options

LinkedIn offers other bidding options such as cost per view (CPV) and cost per action (CPA). CPV is a bidding option where advertisers pay every time someone views their video ads. CPA is a bidding option where advertisers pay only when someone takes specific actions such as filling out a form or downloading an app after clicking on an ad.

Note: LinkedIn's bid auction works differently than other platforms like Google Ads. Advertisers should keep in mind that the highest bidder does not always win the auction. LinkedIn considers relevance score, ad quality, and user experience to determine which ad wins the auction.

Insight Tag and Carousel Ads

To optimize campaigns further, LinkedIn provides additional specs such as insight tag and carousel ads. Insight tag allows advertisers to track website conversions and measure campaign ROI more effectively. Carousel ads allow advertisers to showcase multiple images or videos within one ad unit, increasing engagement rates.

Targeting Parameters

LinkedIn's targeting parameters are what set it apart from other advertising platforms. Advertisers can target users based on interests, demographics, job titles, company size, education level, skills, groups they belong to, and more. These targeting options allow advertisers to reach their ideal audience more precisely.

Targeting Options for LinkedIn Ads: Layering and Setting Your Options

Layering and Setting Your Options: Maximising LinkedIn Advertising Targeting

Targeting options are the backbone of any successful LinkedIn advertising campaign. With LinkedIn's advanced targeting capabilities, advertisers can create highly specific campaigns that reach the exact audience they want to target. In this section, we will discuss how to layer and set your targeting options to maximise your advertising efforts on LinkedIn.

Layer Your Targeting Options for Precision

One of the most powerful features of LinkedIn advertising is the ability to layer targeting options. This means you can refine your audience even further by adding multiple criteria such as job title, company size, and location. Layering allows you to create a highly targeted audience that is more likely to engage with your ads and convert into leads.

For example, let's say you're promoting a software product designed for HR professionals in small businesses. You could start by selecting "HR" as the job function filter and "Small Business" as the company size filter. But if you want to narrow down your audience even further, you could add additional filters such as location (e.g., United States), seniority level (e.g., manager or director), and industry (e.g., technology). By layering these filters, you can create an audience that is more likely to be interested in your product and willing to take action.

Set Your Targeting Options Carefully

Setting your targeting options carefully is crucial to ensure your ads are seen by the right people and not wasted on irrelevant audiences. Before setting up any campaign, it's important to define who your ideal customer is and what kind of message will resonate with them.

LinkedIn targeting options include demographic filters such as age, gender, and education level, as well as professional filters such as job function, seniority level, industry, skills, groups joined or content engaged with on LinkedIn. You can also target based on interests outside of work like hobbies or non-work-related activities.

It's important to note that the more specific your targeting options are, the smaller your audience will be. While a highly targeted audience can lead to better engagement and conversions, it's important to find a balance between specificity and reach. If your audience is too small, you may not get enough impressions or clicks to make the campaign worthwhile.

Knowing Your Audience and Customer Journey for Successful LinkedIn Ads

Identifying your target audience is crucial for successful LinkedIn ads. Without knowing who you want to reach, it's impossible to create an effective ad campaign. One way to do this is by understanding the customer journey. By mapping out the different stages that a potential customer goes through before making a purchase, you can tailor your ads to reach the right people at the right time.

The first step in identifying your target audience is to define who they are. This includes demographic information such as age, gender, and location, as well as professional details like job title and industry. Once you have this information, you can start thinking about where these people are in their customer journey.

For example, if you're targeting people who are in the early stages of their journey (i.e., they're just starting to research a product or service), you might want to focus on creating educational content that helps them understand their problem and how your product or service can solve it. On the other hand, if you're targeting people who are further along in their journey (i.e., they're ready to make a purchase), you might want to focus on creating more sales-oriented content that highlights the benefits of your product or service.

Utilising matched audiences can help you reach more people who are already familiar with your brand. Matched audiences allow you to target people based on their interactions with your website or other LinkedIn content. For example, if someone has visited your website before but didn't make a purchase, you could target them with an ad that offers a discount code or free trial.

Focusing on follower targeting can help you expand your reach to different audiences on LinkedIn. Follower targeting allows you to target people based on their interests and behaviours rather than just their demographics. For example, if someone follows a competitor of yours on LinkedIn, you could target them with an ad that highlights why your product or service is better.

Measuring Performance of Your LinkedIn Ads: Metrics to Track and Analyse

Track Website Visits

To measure the effectiveness of your LinkedIn ads, it is important to track website visits. This metric allows you to understand how many people are clicking through to your site from your ad. By monitoring this data point, you can evaluate the success of your ad campaigns and make adjustments as needed.

Analysing Profile Data

Understanding the demographics and interests of your audience is crucial when advertising on LinkedIn. Analysing profile data can help you optimise your ad targeting accordingly. By looking at factors such as job title, industry, and location, you can create targeted ads that resonate with your desired audience.

Performance Metrics

Monitoring performance metrics such as click-through rates (CTR), conversion rates, and cost per click (CPC) is essential for evaluating the success of your ad campaigns. CTR measures how many people clicked on your ad compared to how many times it was shown. Conversion rate measures how many people completed a desired action after clicking on your ad, such as filling out a form or making a purchase. CPC measures the cost of each click on your ad.

Engagement Metrics

Measuring engagement through social actions such as likes, comments, and shares can help gauge the level of interest and interaction with your ads. These metrics provide insight into how well-received your ads are by viewers and can inform future content decisions.

Testing Different Ad Formats

Testing different ad formats and sizes is crucial in determining which ones generate the most engagement and data points. Video ads have become increasingly popular on LinkedIn due to their ability to capture attention quickly and convey information effectively. Testing different video views sizes can also impact engagement rates.

Tracking LinkedIn Ad Conversions: Don't Forget Conversion Tracking

Website Conversions: The Ultimate Goal of LinkedIn Advertising Campaigns

The main objective of LinkedIn advertising campaigns is to drive website conversions. A website conversion happens when a visitor takes a desired action on your website, such as filling out a form, subscribing to a newsletter, or making a purchase. Conversion tracking is essential to measure the effectiveness of your LinkedIn ads in achieving this goal.

Conversion Tracking: Don't Forget It

LinkedIn's conversion tracking feature allows you to track website conversions and attribute them to specific ads. This helps you understand which ads are driving the most conversions and optimise your campaigns accordingly. To use conversion tracking, you need to add a LinkedIn Insight Tag to your website. The Insight Tag enables conversion tracking by collecting data on website visitors who interact with your LinkedIn ads.

Adding the Insight Tag to Your Website

Adding the Insight Tag to your website is easy and straightforward. First, you need to create an Insight Tag in your LinkedIn Campaign Manager account. Then, copy the code provided by LinkedIn and paste it into the header section of every page on your website where you want to track conversions for.

Once you have added the Insight Tag, you can start tracking conversions for any campaign that uses it. You can set up conversion tracking at the campaign level or at the ad level, depending on how granular you want your data to be.

Measuring Results: Analysing Your Conversion Data

Once you have set up conversion tracking, it's time to analyse your data and see how well your campaigns are performing in terms of driving website conversions. You can view conversion data in several ways:

Campaign-level reporting: This shows you how many conversions each campaign has generated overall.
Ad-level reporting: This shows you how many conversions each individual ad has generated.
Demographic reporting: This shows you which demographics (such as age, gender, and location) are converting at higher rates than others.
Device reporting: This shows you which devices (such as desktop, mobile, and tablet) are generating the most conversions.

Using this data, you can identify which campaigns and ads are driving the most conversions and adjust your targeting, messaging, and bidding strategies accordingly.

Creating Conversion Ads on LinkedIn

Targeting the Right Audience

When creating conversion ads on LinkedIn, it's crucial to target the right audience. The first step is to define your target audience and understand their pain points. You can use LinkedIn's targeting options to narrow down your audience based on factors such as job title, company size, industry, location, and more.

For example, if you're promoting a B2B software product that helps small businesses with accounting tasks, you may want to target small business owners or financial managers in specific industries. By targeting the right audience with relevant messaging, you increase your chances of generating high-quality leads and conversions.

Compelling Ad Copy

Once you've defined your target audience, it's time to craft compelling ad copy that resonates with them. Your ad copy should highlight the benefits of your product or service and address your target audience's pain points.

For example, if you're promoting a marketing automation tool for B2B companies, your ad copy could focus on how the tool can save time and streamline marketing efforts for busy professionals. Use clear language and avoid jargon or buzzwords that may confuse or turn off potential customers.

Eye-Catching Visuals

In addition to compelling ad copy, eye-catching visuals are also important for creating effective conversion ads on LinkedIn. Visuals can include images or videos that showcase your product or service in action or highlight its key features.

For example, if you're promoting a new SaaS platform for project management teams, you could use a video ad that shows how easy it is to collaborate with team members using the platform. Or you could use an image that highlights some of the key features of the platform such as task assignments or progress tracking.

Creating Lead Gen Forms and Gated Offers with LinkedIn Lead Gen Forms

LinkedIn Lead Gen Forms: Streamlining the Lead Generation Process

Customised lead gen forms have become an essential tool for businesses looking to generate valuable leads. LinkedIn's Lead Gen Forms offer a streamlined approach to lead generation, collecting specific information from potential leads directly on the platform. By using gated offers such as whitepapers or webinars in conjunction with lead gen forms, businesses can incentivise users to provide their contact information and nurture them into customers.

Creating Customised Lead Gen Forms

LinkedIn's Lead Gen Forms allow businesses to create customised forms that collect specific information from potential leads. This information can include job title, company size, and other relevant data that can help businesses tailor their marketing efforts towards these individuals.

To create a customised lead gen form on LinkedIn, start by selecting "Create a Form" within the Campaign Manager. From there, choose your ad format and select "Collect leads using LinkedIn." Next, customise your form fields based on the information you want to collect from potential leads. It's important to keep in mind that the more fields you require users to fill out, the lower your conversion rate may be.

Once you've created your form fields, add a call-to-action (CTA) button that encourages users to submit their information. Finally, preview your form and publish it once you're satisfied with how it looks.

Using Gated Offers

Gated offers are an effective way of incentivising users to provide their contact information through lead gen forms. These offers can include whitepapers, webinars, e-books, or any other type of valuable content that potential leads would find useful.

By offering gated content in exchange for contact information through lead gen forms on LinkedIn, businesses can increase their chances of generating high-quality leads who are interested in what they have to offer.

Streamlining Your Lead Generation Process

LinkedIn's Lead Gen Forms offer an efficient way for businesses to generate valuable leads without requiring users to leave the platform. By customizing lead gen forms and using gated offers, businesses can incentivise users to provide their contact information and nurture them into customers.

In addition to streamlining the lead generation process, LinkedIn's Lead Gen Forms also offer valuable insights into campaign performance. By tracking metrics such as form fill rates and cost per lead, businesses can optimise their campaigns for maximum ROI.

Using the LinkedIn Ads Campaign Manager

Using LinkedIn Ads Campaign Manager

Creating and managing advertising campaigns on LinkedIn has never been easier with the use of LinkedIn's Campaign Manager. The Ads Manager provides a great way to reach a highly targeted audience of job applicants and professionals on the platform today. In this section, we will discuss how to use LinkedIn's Campaign Manager for your ad campaign creation.

Different Ad Campaigns

LinkedIn's Campaign Manager allows you to create different ad campaigns such as job ads and sponsored messaging. Job ads are useful when looking for new candidates to fill open positions in your company. Sponsored messaging is an excellent way to connect with potential clients or customers directly. By using sponsored messaging, you can send personalised messages directly to people who match your target audience criteria.

Campaign Creation

When creating a campaign, you can set your own budget and choose between CPC or CPM pricing models for your advertising campaign. CPC stands for cost per click, which means that you pay every time someone clicks on your ad. CPM stands for cost per thousand impressions, which means that you pay every time someone sees your ad one thousand times.

Ads Manager

The Ads Manager also allows you to target specific audiences based on factors such as job title, company size, and location. This targeting feature is very powerful because it ensures that only people who match your criteria will see your ad campaign.

For example, if you are looking for software developers in San Francisco Bay Area with at least 5 years of experience working in tech companies with more than 100 employees, then you can create an ad campaign targeting only those individuals who meet these criteria.

Case Study: HubSpot

HubSpot used LinkedIn's Campaign Manager to promote their inbound marketing certification course by creating sponsored content that targeted marketing professionals with certain job titles such as Marketing Director or VP of Marketing.

By using LinkedIn's targeting features in the Ads Manager, HubSpot was able to reach over 1 million people while keeping their costs low. This resulted in over 12,000 new leads and a significant increase in course sign-ups.

Measuring the Success of Your LinkedIn Ad Campaigns

Setting Specific Goals for Your LinkedIn Ad Campaigns

Before measuring the success of your LinkedIn ad campaigns, it's essential to set specific goals. Setting specific goals will help you determine what metrics to track and how to measure the success of your campaigns accurately. For instance, if you aim to increase brand awareness, you may want to track impressions and engagement rates. On the other hand, if your goal is to generate leads or conversions, tracking click-through rates (CTR) and conversion rates is crucial.

Company Size Impact on Success

The size of the company can impact the success of your LinkedIn ad campaigns. Targeting smaller companies may result in higher engagement rates but lower conversion rates. In contrast, targeting larger companies may lead to lower engagement rates but higher conversion rates. Therefore, it's essential to consider your target audience's size when creating ad campaigns.

Optimising Your LinkedIn Ad Campaigns

A/B testing different ad formats, targeting options, and messaging can help optimize your LinkedIn ad campaigns for success. A/B testing involves creating two versions of an ad campaign with slight variations in elements such as headlines or images. You can then test both versions simultaneously and analyze which one performs better based on metrics such as CTR or conversion rate.

Regularly Analysing and Adjusting Your Ad Campaigns

Regularly analysing and adjusting your LinkedIn ad campaigns based on performance metrics can lead to greater success and ROI on the platform. It's important not only to track metrics but also understand what they mean for your business goals. For example, a high CTR does not necessarily translate into more conversions if the landing page is not optimised correctly.

How Much Does it Cost to Advertise on LinkedIn?

LinkedIn Text Ads Cost

LinkedIn text ads typically have a cost-per-click (CPC) ranging from $2.00 to $5. This ad format appears as a small banner at the top or side of a user's LinkedIn page and includes an image and short text description.

Similar to sponsored content ads, targeting options also affect the cost of LinkedIn text ads. However, with this ad format being less visually appealing than sponsored content ads; it may require a higher CPC to get clicks.

LinkedIn Sponsored InMail Ads Cost

LinkedIn-sponsored InMail ads can cost between $0.35 to $0.85 per message sent. This ad format allows advertisers to send personalised messages directly to their target audience's inbox.

The cost of sponsored InMail ads also depends on targeting options and competition levels within your target audience's inbox.

Minimum Daily Budget for LinkedIn Advertising

The minimum daily budget for LinkedIn advertising is $10 per campaign regardless of which type of ad format you choose.

Cost-Per-Impression (CPM) Bidding Option for Sponsored Content Ads

LinkedIn also offers a cost-per-impression (CPM) bidding option for sponsored content ads, with an average CPM of $7.00 to $9.00. This bidding option allows advertisers to pay for every 1,000 impressions their ad receives.

The cost of sponsored content ads using the CPM bidding option depends on targeting options, bid amount, and competition levels within your target audience's feed.

Summary of LinkedIn Advertising Costs: Creating a Budget and Understanding Costs

Ad Spend on LinkedIn: Understanding the Costs

Allocating a budget for LinkedIn advertising can be a daunting task, especially if you are new to the platform. The cost of advertising on LinkedIn varies depending on several factors such as ad format, targeting options, bidding strategy, and competition for ad placement. In this section, we will discuss how to create a budget for LinkedIn advertising and understand the costs involved.

Creating a Budget for LinkedIn Advertising

Before starting any advertising campaign on LinkedIn, it is essential to determine your total budget. This includes deciding how much money you want to spend overall and how much you want to allocate per day. Allocating a daily budget ensures that your spending stays within your set limits and helps prevent overspending.

When creating a budget for LinkedIn advertising, consider the following factors:

Ad Format: Different ad formats have different costs associated with them. Sponsored content tends to be more expensive than text ads or sponsored InMail.
Targeting Options: Advanced targeting options such as job title, company size, industry type and location can increase the cost of your ads.
Bidding Strategy: Your bidding strategy determines how much you are willing to pay per click (CPC) or per impression (CPM). A higher bid increases the chances of winning an auction but also increases the cost of your ads.
Competition: The level of competition in your target audience can affect the cost of your ads. If there are many advertisers competing for ad space in your target audience, then it may drive up prices.

Optimising Your Ad Spend

To optimise your ad spend and achieve desired results, regularly monitor and adjust your budgets based on performance metrics. LinkedIn provides detailed analytics that allow you to track the performance of each campaign, including impressions, clicks, CTRs, and conversions.

Consider testing different targeting options, bidding strategies, and ad formats to see what works best for your business. Also, keep in mind that LinkedIn's algorithms are designed to show ads to users who are most likely to engage with them. Therefore, it is crucial to create high-quality content that resonates with your target audience.

Best Practices for Advertising on LinkedIn: Tips and Tricks for Success

Use LinkedIn's Targeting Options to Reach Your Ideal Audience

One of the best practices for advertising on LinkedIn is to use its targeting options. With over 700 million members, LinkedIn offers a wealth of data that can help you reach your ideal audience. You can target by job title, industry, company size, location, and more. This allows you to create highly targeted campaigns that are more likely to resonate with your audience.

To get the most out of LinkedIn's targeting options, it's important to have a clear understanding of who your ideal customer is. Think about their job title, industry, company size, and location. Use this information to create targeted campaigns that speak directly to their needs and pain points.

Create Visually Appealing Ads That Grab the Attention of Your Target Audience

Another best practice for advertising on LinkedIn is to create visually appealing ads that grab the attention of your target audience. LinkedIn offers several ad formats, including sponsored content, sponsored InMail, and display ads.

When creating ads for LinkedIn, it's important to use high-quality images or videos that are relevant to your business and message. Use bold colors and eye-catching graphics to make your ads stand out in the feed. Keep in mind that LinkedIn users are professionals who are looking for valuable content and insights. Make sure your ads provide value and aren't overly promotional.

Test Different Ad Formats and Messaging To See What Resonates Best with Your Audience

Testing different ad formats and messaging is another best practice for advertising on LinkedIn. Try different ad formats such as sponsored content or sponsored InMail to see what works best for your business. Experiment with different messaging and calls-to-action (CTAs) to see what resonates with your audience.

It's also important to test different variations of your ads such as headlines, images/videos or CTAs in order find which variation performs better than others.

Use Sponsored Content To Put Your Business in The Spotlight And Increase Brand Awareness

Sponsored content is a great way to put your business in the spotlight and increase brand awareness. Sponsored content appears in the LinkedIn feed alongside organic content. This allows you to reach a wider audience and promote your business in a more subtle way.

When creating sponsored content, make sure it's relevant to your target audience and provides value. Use eye-catching visuals and compelling headlines to grab their attention. You can also use sponsored content to promote your blog posts or other long-form content.

Personalise Your Messages To Make Them More Relevant And Engaging For Your Audience

Use the recipient's name or company name in the message as well as any other information that may be relevant for them. This will help make the message more personal and engaging.

Monitor And Analyse Your Ad Performance Regularly To Optimise For Better Results

Finally, it's important to monitor and analyse your ad performance regularly in order optimize for better results. Use LinkedIn's analytics tools to track metrics such as impressions, clicks, conversions etc., so you can see how your ads are performing over time.

Use this data to make informed decisions about which ads are working best for your business and which ones need improvement. Make adjustments accordingly by testing different variations of ads or messaging until you find what works best for you.

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Richard Hunter

I am the founder of SocialSidekick and the Marketing Manager at Coventry Building Society Arena.

I have worked in digital marketing and web design since 2006. My specialisms include social media marketing, eCommerce and advertising.

You can contact me via this website.

https://www.socialsidekick.co.uk