LinkedIn advertising can be a highly effective way for businesses to reach their target audience. With over 722 million users worldwide, LinkedIn is the largest professional social media platform and offers extensive targeting options to deliver ads to specific demographics and interests. But how much does it actually cost to run LinkedIn ads? The pricing structure can seem complex at first glance, with costs varying significantly based on factors like audience targeting, ad formats, and engagement. This article will break down the key factors that influence LinkedIn advertising costs and provide average pricing examples to give an overview of how much businesses can expect to pay.
LinkedIn Advertising Pricing Models
LinkedIn offers two main pricing models for its ads: Cost Per Click (CPC) and Cost Per Thousand Impressions (CPM).
Cost Per Click (CPC)
With the CPC model, advertisers are charged each time someone clicks on their ad. The cost per click depends on factors like competition, quality of landing page, and relevance of ad to audience. CPC bidding allows advertisers to set a maximum bid amount they’re willing to pay. The actual CPC rate will be determined by the auction process.
Cost Per Thousand Impressions (CPM)
CPM campaigns charge advertisers for every 1,000 impressions (views) their ads receive. The cost is determined by demand, ad position, and targeting. CPM buying guarantees a certain number of impressions. It’s best for increasing brand awareness rather than direct response.
Factors That Influence LinkedIn Advertising Costs
Several key factors determine how much LinkedIn ads will cost, including:
Audience Targeting
Narrowly targeted ads focused on a specific job title, industry, skills, company size, etc. will cost more than broadly targeted ads. Highly targeted audiences are more in-demand.
Ad Position
Ads shown prominently in the feed or right column will cost more than sidebar or bottom placements. Higher positions attract more visibility.
Engagement
For CPC campaigns, ads that attract more clicks and engagement will see costs increase in the auction bidding process. Quality relevance and creatives boost engagement.
Landing Page Quality
Ads that send users to relevant, high-converting landing pages tend to yield lower CPC costs. Optimized pages keep visitors engaged.
Ad Format
Sponsored InMail (direct emails to members) is the most expensive ad format, followed by video ads. Image/text ads are cheaper.
Bidding Strategy
Manual bidding gives more control but requires monitoring. Automated bidding options optimize for clicks, conversions, etc. but may have higher costs.
Average LinkedIn Advertising Costs
Actual LinkedIn ad costs can vary significantly, but these benchmarks can provide an idea of average pricing:
By Objective
| Objective | Average Cost |
| Brand awareness (CPM) | $2 – $7 per 1,000 impressions |
| Lead generation (CPC) | $3 – $8 per click |
| Traffic driving (CPC) | $2 – $4 per click |
| Video views (CPM) | $25 – $50 per 1,000 views |
By Ad Format
| Ad Format | Average Cost |
| Sponsored InMail | $50 – $100 per send |
| Sponsored Content | $10 – $15 per 1,000 impressions |
| Text Ads | $3 – $5 per click |
| Dynamic Ads | $8 – $12 per click |
By Audience Targeting
| Targeting | Typical CPC |
| Broad (age, region, etc.) | $1 – $3 |
| By industry or job title | $3 – $6 |
| Specific company size | $4 – $8 |
| Specific skills or interests | $5 – $10 |
As shown above, highly targeted ads focused on specific job roles, skills, company size, etc. will be at the upper end of the typical CPC range. More broadly targeted ads by industry, age, region, etc. will be cheaper.
Tips for Lowering LinkedIn Advertising Costs
Here are some tips to help control LinkedIn advertising costs:
Set Specific Campaign Goals
Having clear goals for each campaign (brand awareness, leads, traffic etc.) allows selecting the optimal ad type, placement and bidding.
Use Negative Keywords
Adding negative keywords helps reduce irrelevant clicks that drive up costs. Include misspellings and synonyms.
Tightly Refine Targeting
Ultra-specific targeting minimizes wasted ad spend and keeps costs focused only on intended audience.
A/B Test Ad Variations
Testing different ad creatives, calls-to-action and formats can reveal the optimal mix for lower cost and higher engagement.
Monitor and Optimize
Frequently check performance data and tweak targeting, bids and creatives in response to results.
Use Automated Bidding Strategies
Automated bidding algorithms can help maximize clicks and conversions at optimal costs.
Advertise Consistently
Maintaining an ongoing advertising presence helps lower average costs over time through algorithm learning.
Design Effective Landing Pages
Quality landing pages that convert visitors into leads can significantly reduce cost per conversion.
Conclusion
LinkedIn advertising costs are driven by a range of factors including audience targeting, ad placements, formats and bidding strategies. While costs can vary widely, typical CPC rates range from $1 to $10+ depending on targeting specificity. CPM rates for brand awareness campaigns usually fall between $2 to $50 per 1,000 impressions. Following best practices like highly focused targeting, optimized landing pages and frequent testing can help maximize LinkedIn ad results while controlling costs. Monitoring performance data and adapting campaigns in response is key to maintaining a positive ROI on LinkedIn ad spending.
