LinkedIn ads can be an effective way to reach your target audience, but they can also get expensive. The good news is there are several strategies you can use to reduce your LinkedIn ad costs and get more bang for your buck.
Optimize Your Targeting
One of the best ways to lower your LinkedIn ad costs is to tighten up your targeting. The more narrowly you can define your target audience, the lower your costs will be and the better your results.
When setting up your ad campaign in LinkedIn Ads Manager, make sure to select detailed targeting options such as:
- Job title
- Company name
- Industry
- Seniority level
- Groups and interests
Avoid broad targeting categories like age, gender, or geographic location. The more specific you can get, the better.
You can also layer on multiple targeting criteria to further refine your audience. For example, you may target “marketing managers” who work at “retail companies” with over “1000 employees.” The more layers, the lower your cost per click or conversion typically is.
Use LinkedIn’s Matched Audiences Feature
Another great way to optimize your targeting is to use LinkedIn’s Matched Audiences feature. This allows you to target your ads based on email addresses or website traffic.
For example, you can upload a list of email addresses of current or former customers. LinkedIn will then target your ads to audiences who match that list. This is a highly precise way to reach your ideal customers.
You can also integrate LinkedIn ads with analytics platforms like Google Analytics to target visitors to your website. This allows you to rerun ads to people who have already engaged with your content.
Focus on Accuracy, Not Reach
When setting up your campaign objective, focus on accuracy, not reach. Objectives like “lead generation” typically have lower costs than “brand awareness” campaigns aimed at maximum reach.
Conversion-focused objectives like leads and traffic align your ads with users who are more likely to take your desired action. This results in higher relevance, lower costs, and better ROI.
Optimize Your Ad Creative
Your visuals, copy, and messaging all play a big role in LinkedIn ad performance and costs. Take time to test and refine your creative to maximize results.
Use Attention-Grabbing Visuals
LinkedIn ads with strong visuals tend to have higher click-through and conversion rates, driving down costs. Some best practices include:
- Use high-quality, custom images that align with your message
- Include your logo and brand colors for recognition
- Use images with faces, emotions, and eye contact to draw attention
- Ensure images are formatted correctly for each ad placement (feed, text, etc.)
Craft Compelling Copy
Your ad copy should clearly convey your key message and value proposition. Some tips:
- Highlight benefits specific to your target audience
- Use concise, scannable sentences in your headlines and body text
- Include a strong CTA that tells people what to do next
- Adopt messaging that speaks to a business audience
Test Different Versions
Run A/B tests with different creative to see what resonates best with your audience. Try testing factors like:
- Headline and body text
- Call-to-action
- Visuals
- Ad placement (feed vs. right column)
Analyze performance data to refine your top ads and lower cost per conversion over time.
Optimize Your Landing Pages
Your LinkedIn ads are only as strong as the landing pages they direct people to. Well-optimized landing pages can greatly improve conversion rates and decrease cost per result.
Match Your Ads
Your landing page should visually match your ads with consistent branding, messaging, and visuals. This helps reinforce your message and set visitor expectations.
Speak to the Audience
Make sure your copy, headlines, and design speak directly to your target audience. Include messaging and visuals that align with their needs, pain points, and desires.
Reduce Friction
Remove anything on your landing pages that may create friction or distraction for visitors. Eliminate excessive navigation, forms, and clicks needed to convert. More friction = lower conversion rates.
Highlight a Single CTA
Use a primary CTA button that stands out and draws visitors to your desired action. This could be a free trial, contact form, product demo etc. Make it visible and clear.
Bid Strategically
How you set your bids also impacts LinkedIn ad costs. Use these strategies to bid smarter:
Leverage Automated Bidding
Let LinkedIn’s automated bid strategies optimize your bids rather than setting fixed amounts. Options like “Target CPA” allow you to get the most conversions for your target cost per acquisition.
Set Specific Bid Caps
Using bid caps gives you more control over your budget. For example, you may target a cost per click below $5 or cost per conversion below $100. Watch performance at different bid caps to find the optimal range.
Adjust Bids by Audience
Your ideal bid amount can vary significantly based on the audience. You may set higher bids for high-converting audiences like past customers, and lower bids for untested audiences.
Raise Bids for Top Performers
Analyze performance data to identify your top-converting audiences, ads, keywords, placements etc. Increase bids on the elements that are working well to get more volume and lower cost per conversion.
Improve Ad Rank
Beyond your bid amount, your overall ad rank influences cost. Ranking higher means more impressions at lower costs. Here are some ways to improve it:
Increase Keyword Relevance
Use keywords in your ad copy and landing pages that are closely matched to the search terms your audience uses. Higher keyword relevance equals better rank.
Drive More Engagement
LinkedIn factors account for engagement as part of rank. Tactics like liking and sharing LinkedIn pages, posting updates, and connecting with more people can all help improve your rank.
Get More Connections and Followers
The number of connections and followers on your LinkedIn company page also contributes to rank. Focus on growing these organically over time to keep improving your reach and lowering costs.
Analyze and Refine
Consistently analyze your campaign performance and refine based on insights. Some metrics to track include:
- Cost per click
- Click-through rate
- Cost per lead/conversion
- Conversion rate
- ROI
Look for trends to identify your best-performing audience segments, ads, keywords, etc. Double down on what’s working and eliminate what’s not.
A/B test new elements like ad creative and landing pages to find further optimization opportunities. Continual refinement over time will steadily drive down your costs and boost your ROI.
Use LinkedIn’s Targeting Tools
Take advantage of LinkedIn’s robust targeting and audience creation tools to hone in on your best customers. Options include:
Lead Gen Forms
Create customized lead gen forms to attract your ideal prospects right within LinkedIn. You pay only when leads fill out your form, so it’s a highly cost-efficient way to generate leads.
Website Retargeting
Retarget people who have already visited your website with relevant LinkedIn ads to drive them back. Previous site visitors have stronger buying intent.
Matched Audiences
Build targeted audiences based on your ideal customer profiles from sources like website traffic, CRM data, and imported contact lists. Costs are lower when you precisely define your audience.
Account Targeting
Target ads by specific companies you want to reach based on factors like industry, size, tech used, and more. Ideal for B2B targeting.
Contact Targeting
Upload contacts and target key decision makers within your accounts. For example, you may target CMOs at top customers or prospects.
Run Retargeting Ads
Retargeting is one of the most cost-efficient LinkedIn advertising tactics. You can run ads to people who have already engaged with some aspect of your business, whether it’s visiting your site, viewing a page, attending an event, or interacting with your ads.
Some examples of LinkedIn retargeting include:
- Website retargeting
- Lead form retargeting
- Content views retargeting
- Page visits retargeting
- Event retargeting
- Slow website visitor retargeting
These audiences have demonstrated existing interest and are primed for your messaging. Retargeting allows you to continue nurturing leads with relevant ads at very effective CPCs and conversion costs.
Schedule Ads Strategically
When and how often you run your LinkedIn ads also affects costs. Consider these timing strategies:
Coincide With Buyer Behavior
Study when your audience is most active on LinkedIn and align your ad schedule accordingly. You may get higher conversion rates running ads during active business hours or days.
Ramp Up During Key Periods
Increase your ad spend leading up to major events, product releases, trade shows, or seasonal busy periods. Meet high interest with more impressions.
Go on Hiatus During Slow Times
Reduce or pause spend if you see lower conversion rates during slow seasons, holidays, or times with no major news or offers.
Test Different Frequencies
Experiment to find the ideal ad frequency for your audience and messaging. You may drive more conversions with more impressions or find diminishing returns after a certain point.
Take Advantage of Promotions and Discounts
LinkedIn frequently offers reduced costs and account credits as promotional incentives. Be on the lookout for opportunities like:
- Free additional impressions
- Discounted CPC during off-peak hours
- Lower management fees
- Account credits for testing new ad formats
- Spend match credits
Sign up for LinkedIn’s ad newsletter so you don’t miss out on offers. Take advantage to maximize traffic while lowering your overall costs.
Work With a LinkedIn Advertising Expert
Consider partnering with a LinkedIn ads management agency or consultant to maximize your return on ad spend. Experts can help with strategies like:
- Audience identification and targeting
- Ad testing and optimization
- Technical integration and setup
- Campaign management and monitoring
- Performance analysis and reporting
Bringing on specialist support enables you to spend your time on other priorities while experts handle the ongoing optimization needed to decrease your LinkedIn advertising costs.
Conclusion
With the right targeting, optimization, analysis, and support, you can get your LinkedIn advertising costs under control. Focus on precision over reach, conversion-based objectives, thoughtful bidding strategies, relentless testing, and tapping into LinkedIn’s capabilities.
Approach LinkedIn ads as an ongoing process, not a set-and-forget tactic. Maintain vigilance on monitoring campaigns and proactively make changes based on performance. Over time, you can dramatically improve cost-efficiency while driving better results from your LinkedIn advertising investment.