How are LinkedIn ads billed?

LinkedIn ads are an effective way for businesses to reach their target audience and generate leads. But how exactly does LinkedIn charge for its advertising services? In this comprehensive guide, we’ll walk through everything you need to know about LinkedIn ad billing, including payment models, billing cycles, minimum spends, and more.

LinkedIn Ad Payment Models

LinkedIn offers advertisers two main payment models to choose from: CPM (cost per thousand impressions) and CPC (cost per click).

CPM (Cost Per Thousand Impressions)

With the CPM model, advertisers are charged based on the number of times their ads are displayed on LinkedIn. It doesn’t matter if the ad is clicked or not – you pay for every 1000 impressions (views) your ad receives. CPM pricing is best suited for:

• Brand awareness campaigns
• Sponsored content
• Getting your message in front of a wide audience

CPM rates on LinkedIn typically range from $5 to $15 per 1000 impressions. The more targeted your audience, the higher your CPM rate will be. Geographic targeting also impacts CPM pricing.

CPC (Cost Per Click)

With CPC billing, advertisers only pay when someone clicks on their ad. The cost per click can vary based on factors like:

• Audience targeting
• Ad position
• Landing page relevance
• Competition

CPC advertising is ideal for campaigns focused on driving traffic, leads, and conversions. LinkedIn CPC rates average $3 to $15 per click but can go higher depending on targeting.

Minimum Spends

LinkedIn Ads require a minimum advertising spend which depends on your geographic target:

*EMEA = Europe, Middle East and Africa / APAC = Asia Pacific

Keep in mind the daily minimum only applies to active campaigns. You can pause campaigns at any time without penalty.

Billing Cycles

LinkedIn bills advertisers on a monthly basis. Here are some key points about LinkedIn’s billing cycles:

• Billing periods are based on calendar months
• Accounts are billed on the 5th of each month
• Charges are based on ad activity from the previous month
• Payment is required within 15 days of receiving the invoice
• Unpaid invoices can result in paused campaigns

For example, if you launched a campaign on January 15th, you would be billed on February 5th for ad spend between January 15-31.

Billing and Payment Methods

LinkedIn currently accepts the following payment methods:

• Credit card – Visa, Mastercard, American Express
• Wire transfer – For invoices over $25,000
• Check – U.S. checks only

Payment methods can be updated in your LinkedIn campaign manager account under “Billing and payments.”

It’s important to keep your billing information up to date. LinkedIn will email reminders if there are any outstanding invoice balances on your account.

How Budgets and Billing Work Together

When setting up LinkedIn ad campaigns, you have the option to set a monthly budget. This cap prevents your ad spend from exceeding a defined amount each month. Here’s how budgets and billing interact:

• Monthly budgets reset on the 1st of each month
• You are only billed for actual ad spend each month, not the full budget amount
• Budgets can be adjusted mid-month as needed
• Pausing campaigns stops spend but does not adjust the budget
• Budgets span all campaigns in your account

For example, let’s say you set a monthly budget of $1000 and end up spending $750 that month. Your invoice would total $750. The unused $250 does not carry over – your budget simply resets back to $1000 on the 1st of the following month.

How Overages Are Handled

If your actual monthly ad spend exceeds your budget, LinkedIn caps your total charges at 10% above budget. Here is how LinkedIn handles budget overages:

• Spend is capped at 10% over the pre-set budget
• The following month’s budget is reduced by that overage amount
• For example, if your budget was $1000 and you spent $1100, your next month’s budget would start at $900 ($1000 – $100 overage)
• Overages are rare but can happen if spend drastically exceeds expectations
• Pausing campaigns once a budget is reached can prevent overspend

Credits, Refunds and Billing Disputes

What happens if you need to dispute a LinkedIn Ads charge or request a refund? Here are some key policies to be aware of:

• Refund requests must be made within 5 days of the invoice date. Refunds are generally provided as account credits.
• Billing disputes must also be submitted within 5 days. Disputed charges remain payable until resolved.
• Account credits are valid for 90 days and applied to future ad spend.
• Refunds only provided for errors on LinkedIn’s side or ad violations.
• Change of mind/cancellations do not qualify for refunds.

Submit billing disputes or refund requests via LinkedIn’s help center. Valid cases will be reviewed by LinkedIn’s billing team.

Managing Ongoing LinkedIn Ad Spend

LinkedIn provides advertisers with several tools to manage budgets, billing details and stay on top of monthly ad costs:

• Billing details – Update payment info and view past statements.
• Monthly budget – Set a budget cap for each campaign.
• Campaign tracking – Monitor real-time daily/monthly spend for each campaign.
• Alerts – Get notifications when spend reaches 50/75/90% of budget.
• Auto-pause – Set campaigns to pause automatically once budget is reached.

Actively monitoring your account and setting appropriate budgets allows you to maximize LinkedIn ad results while controlling costs.

Conclusion

Understanding LinkedIn’s advertising billing models, cycles, and policies allows you to plan and manage campaigns confidently. The key takeaways are:

• LinkedIn bills on a monthly basis based on calendar months
• Advertisers choose between CPM or CPC payment models
• Minimum daily ad spend applies based on geographic targeting
• Monthly budgets prevent overspend but won’t restrict you mid-month
• Account credits, refunds, and disputes must be submitted promptly
• Utilize LinkedIn’s management tools to track spend vs. budget

With these billing basics, advertisers can avoid unexpected charges and make the most of their LinkedIn ad investments. Best practices are to start with conservative budgets, pause underperforming campaigns, and keep close tabs on account activity. LinkedIn’s self-serve dashboard also provides a wealth of data to optimize your spend over time.