LinkedIn is the world’s largest professional network with over 660 million users worldwide. As one of the most popular social media platforms for business, LinkedIn offers a unique opportunity for brands to reach a targeted B2B audience through paid advertising.
One of the paid ad formats offered by LinkedIn is sponsored content. Sponsored content allows brands to publish native ads in the LinkedIn feed that look and feel just like regular LinkedIn posts. This integrated native ad format leads to higher engagement rates compared to disruptive display ads.
In this comprehensive guide, we will cover everything you need to know about sponsored content ads on LinkedIn including:
What are sponsored content ads?
Benefits of sponsored content ads
Best practices
How much do sponsored content ads cost?
How to create effective sponsored content campaigns
What are sponsored content ads?
Sponsored content refers to native ads on LinkedIn that allow brands to publish promotional posts directly in the LinkedIn feed. These branded posts are labelled as “Promoted” and are targeted to appear in the feeds of your ideal customers.
Here are 3 key things to know about sponsored content ads on LinkedIn:
Native ad format
Sponsored content ads have the same visual design as organic LinkedIn posts. This native ad format seamlessly blends in with regular content on LinkedIn’s desktop and mobile feeds. Sponsored content looks and feels just like any other post users see in their feed. This leads to high click-through rates compared to disruptive banner ads.
Found in the LinkedIn feed
Sponsored content ads appear directly in the LinkedIn feed on desktop and mobile. They can be targeted to appear in the feeds of your desired audience based on parameters like job title, company, industry, interests, and more.
Promoted label
Sponsored posts are clearly labeled “Promoted” so users can differentiate organic vs. paid content. The promoted label provides transparency to users.
In summary, sponsored content refers to visual native ads within the LinkedIn feed that allow brands to organically insert promotional posts targeting their buyers.
Benefits of sponsored content ads
There are many advantages to using sponsored content for LinkedIn ads. Here are 5 key benefits:
Native advertising
Sponsored content has a native ad format that blends seamlessly into the normal LinkedIn feed. This leads to higher engagement rates compared to disruptive banner ads that are easy to ignore.
Highly visible
Sponsored posts appear directly in the LinkedIn feed so they are highly visible to your target audience. This visibility leads to increased brand awareness.
Flexible targeting
You can target your sponsored content to a very specific audience by job title, company, industry, interests, and more. This level of granular targeting is not possible with most other ad formats.
Works across devices
Sponsored content seamlessly adapts across desktop, tablet, and mobile experiences. This allows your ads to reach LinkedIn users no matter what device they are on.
Boosts organic content
You can boost the visibility of your best organic content by running it as a sponsored post. This gives already high-performing content wider reach.
In summary, the seamless native format, high visibility, advanced targeting, multi-device reach, and ability to boost organic content make sponsored ads a highly effective LinkedIn advertising method.
Best practices
Here are some best practices to follow when creating effective sponsored content ads on LinkedIn:
Write compelling copy
Focus on writing great copy that provides value, educates your audience, or entertains them. Copy that elicits an emotional response performs best.
Keep it short
Shorter posts with only a few paragraphs of copy perform better than long posts. Get your message across quickly and concisely.
Leverage visuals
Include relevant images, charts, graphics, or videos in your sponsored posts to capture attention visually on the feed.
Use calls-to-action
Add action-oriented calls-to-action like “Register Now” or “Learn More” with links to your landing pages.
Target tightly
Use LinkedIn’s detailed targeting options to target your posts only to your ideal audience instead of a wide net.
Split test content
Create multiple versions of copy, visuals, and calls-to-action and A/B test them to see what resonates best with your audience.
Promote top performing posts
Analyze performance data to identify your best earning organic posts and sponsor them for additional reach.
Monitor and optimize
Actively monitor campaign analytics and continuously optimize based on insights from high-performing content.
Following these best practices will help you get the most out of your LinkedIn sponsored content program. Test different messaging, visuals, CTAs, and target segments to determine the most effective mix.
How much do sponsored content ads cost?
LinkedIn charges sponsored content ads on a cost-per-click (CPC) pricing model. You only pay when someone clicks on your sponsored post.
Here are 3 key factors that impact the cost of sponsored content ads:
Target audience
The more targeted your audience, the more you will pay per click. For example, targeting C-level executives will cost more than targeting entry-level professionals.
Industry competition
If you are advertising in a highly competitive industry, your CPCs will be higher compared to a less competitive industry.
Post quality
High quality posts with compelling copy, visuals, and CTAs will achieve lower CPCs due to higher engagement and click through rates. Low quality posts lead to higher CPCs.
While LinkedIn does not share average CPCs, sponsored content pricing can range from $2 – $8+ per click depending on audience, competitive intensity, and post quality.
To calculate a CPC estimate, divide your total budget by your target number of clicks. Use LinkedIn’s audience insights to estimate potential reach and engagement.
How to create effective sponsored content campaigns
Here is a step-by-step guide to creating effective sponsored content ad campaigns on LinkedIn:
Step 1: Define your objectives
Be clear about campaign goals and what conversion actions you want users to take after clicking your ad. Common objectives are website traffic, content downloads, event registration, etc.
Step 2: Identify your target audience
Leverage LinkedIn’s detailed targeting options to hone in on your ideal customers by industry, job title, company size, interests, groups, and more.
Step 3: Create quality posts
Draft compelling headlines, copy, visuals, and calls-to-action tailored to appeal specifically to your audience. Follow best practices outlined above.
Step 4: Set your budget
Determine your daily/monthly ad budget based on your CPC goals and target audience size on LinkedIn. Test on a small budget first.
Step 5: Bid competitively
Set competitive bids relative to your target CPC goals. Higher bids often result in lower CPCs by boosting reach.
Step 6: Monitor and optimize
Actively track performance data in LinkedIn Campaign Manager and optimize based on insights from best performing content variations.
Executing these steps to develop an optimized sponsored content program on LinkedIn can deliver high ROI by effectively reaching your B2B audience.
Conclusion
Sponsored content is a highly effective LinkedIn ad format that allows brands to publish native ads directly in the LinkedIn feed. With benefits like seamless integration, high visibility, flexible targeting, and multi-device reach, sponsored posts can drive tremendous value through increased brand awareness, website traffic, lead generation, and more.
Following best practices around compelling content, audience targeting, competitive bidding, and continuous optimization will help you get the most out of your investment. Sponsored content is poised to become even more critical for B2B brands as LinkedIn continues to dominate the professional social space.