LinkedIn lead generation can be an effective way for businesses to identify and connect with potential customers. However, LinkedIn ads and other lead gen tactics come at a cost. In this article, we’ll break down the average cost per lead for LinkedIn lead generation and discuss factors that impact CPL.
What is LinkedIn lead generation?
LinkedIn lead generation refers to strategies and tactics used to generate leads from LinkedIn. This primarily involves using LinkedIn ads to promote content and drive traffic to landing pages where visitors can convert into leads by opting into your email list, requesting a demo, etc.
Other LinkedIn lead gen tactics include:
- Sponsored InMail for directly contacting prospects
- Sponsored content to increase visibility and generate clicks
- LinkedIn Groups to establish your brand as an industry thought leader
- Team LinkedIn Sales Navigator for identifying and connecting with prospects
The goal of all these tactics is to turn LinkedIn users into sales leads by capturing their contact information and intent data.
What factors impact LinkedIn CPL?
There are several factors that influence LinkedIn cost per lead, including:
Target audience
Some target audiences are more expensive to advertise to on LinkedIn. For example, high-level executives, IT managers, or healthcare professionals come at a premium. The more niche your target audience, the higher your CPL is likely to be.
Industry
Certain industries like financial services, technology, and professional services tend to have higher cost per lead benchmarks. The increased competition from brands bidding for industry-specific keywords and placements drives up CPL.
Ad placement
Where your ads appear impacts CPL. InMail and sponsored content placements typically cost more than sidebar text ads. However, they can also deliver higher quality leads. You have to test different placements to find the right balance of volume and cost efficiency for your goals.
Landing page quality
A high-converting landing page is essential for keeping LinkedIn CPL low. Pages that are personalized, relevant, and optimize forms will convert more traffic into leads to spread costs over a larger volume.
Offer/incentive
Strong offers and gated content get more visitors to convert and lower cost per lead. For example, an ebook, whitepaper, or exclusive tool demonstration in exchange for work emails convert better than basic sales pages.
Targeting settings
Micro-targeting specific titles, skills, companies, etc. reduces waste but increases CPL. Broad targeting drops costs but can compromise lead quality. Finding the optimal balance for your audience and product is key.
Competition
If multiple brands bid on the same target segments and keywords, it will drive up prices as you compete for placements, impressions, and clicks. Research competitor activity for your focus areas.
What is the average LinkedIn CPL?
According to LinkedIn, the average cost per lead in 2018 was $81 across all industries. However, there is significant variation across sectors:
| Industry | Average LinkedIn CPL |
|---|---|
| Education | $98 |
| Media & Publishing | $91 |
| Software/Technology | $88 |
| Business Services | $86 |
| Financial Services | $83 |
As you can see, B2B software and financial services tend to have the highest cost per lead. Education has the highest CPL at $98 on average.
However, these benchmarks are averages across many different campaigns, audiences, tactics and KPIs. Your specific CPL can vary significantly based on the factors discussed earlier.
Suff Panda, a PPC agency, cites an average LinkedIn CPL range of $50-$100 based on client data. But specialized B2B niches can easily see $100-$200+ CPL based on lead qualification level.
How can I lower my LinkedIn CPL?
Here are some proven ways to decrease LinkedIn cost per lead and maximize ad ROI:
Optimize landing pages
Ensure your landing pages match the messaging of your ads and make it easy for visitors to convert. Include dynamic content and clear calls-to-action.
Test ad variations
Experiment with different ad copy, formats, placements and imagery to identify what resonates best with your audience at the lowest cost. Iterate based on performance data.
Personalize campaigns
Tailored targeting, localized ad copy and personalized landing pages improve conversion rates. The more relevant your messaging, the better response you’ll get.
Set realistic KPIs
Don’t get caught up chasing vanity metrics like clicks or impressions alone. Focus on the actual cost per converting lead depending on lead qualification criteria.
Analyze and refine
Continuously analyze campaign performance and optimize for improvements. Double down on what works and cut what doesn’t.
Retarget engaged visitors
Remarketing warm leads who previously engaged can turn them into conversions at a lower cost than new visitor targeting.
Offer gated assets
Provide content like ebooks, toolkits or webinars that offer value in exchange for lead generation. The more compelling your offer, the better conversion rate you’ll see.
LinkedIn lead gen benchmarks by industry
To give you a better idea of real-world LinkedIn CPL benchmarks, here are some averages across key industries according to WordStream client data:
| Industry | Average LinkedIn CPL |
|---|---|
| Education | $113 |
| Financial Services | $154 |
| Healthcare & Pharma | $122 |
| Media & Publishing | $102 |
| Professional Services | $142 |
| Retail | $92 |
| Software & Technology | $176 |
| Telecom | $128 |
As you can see, B2B technology and financial services are on the higher end of the spectrum. However, even within the same industry, results vary greatly depending on specific factors like niche, offer, and campaign structure.
How can I calculate LinkedIn CPL?
Figuring out your cost per lead for LinkedIn is relatively straightforward. You need two metrics:
Total LinkedIn ad spend – The amount you’ve spent on LinkedIn ads over a defined period to generate leads. You can get this from LinkedIn Campaign Manager.
Leads generated – The number of leads captured via LinkedIn ads over the same period. Track form submissions, demo sign-ups etc.
With those two numbers, you simply divide total ad spend by number of conversions:
LinkedIn CPL = Total ad spend / Total leads
For example:
Total ad spend: $5,000
Leads generated: 50
CPL = $5,000 / 50
LinkedIn CPL = $100
Beyond this basic calculation, make sure to segment CPL performance by factors like audience, offer, ad type, etc. to get a clearer picture of what’s working best.
Analyze CPL over time as you refine campaigns and aim to reduce it while maintaining lead quality.
Conclusion
LinkedIn lead generation costs vary greatly based on your industry, target audience, campaign tactics and offers. While the average overall CPL is around $81, for specialized B2B niches it can easily exceed $100 or more.
By A/B testing placements, ad formats and landing pages, personalizing your messaging and targeting, and tracking CPL KPIs – you can optimize your LinkedIn strategy to lower cost per lead over time.
Just focus on generating high quality, sales-ready leads that contribute bottom-line revenue. With the right approach, LinkedIn can deliver excellent ROI even with higher upfront CPL.
