On LinkedIn, members may see sponsored messages in their inbox from time to time. These are a form of advertising that companies or individuals can pay to have delivered to a target audience on LinkedIn.
A sponsored message on LinkedIn is a paid form of messaging that appears in a user’s inbox, just like a normal message would. The difference is that sponsored messages include a small “Sponsored” tag to indicate they are advertisements.
Companies and individuals can pay to have sponsored messages delivered to a specific demographic of LinkedIn members based on criteria like job title, industry, company size, geography, age, gender and more. It allows advertisers to reach a highly targeted professional audience.
For example, a recruiter may want to target software engineers at tech companies in Silicon Valley. Or a marketing agency may want to target social media managers at Fortune 500 brands. LinkedIn’s detailed targeting options allow sponsors to hone in on exactly who they want to reach.
Sponsored messages appear right alongside regular messages in the LinkedIn inbox. When a member opens their inbox, the sponsored messages will be seamlessly mixed in with other messages. Only the small “Sponsored” tag distinguishes them as ads.
Benefits of Sponsored Messages
There are a few key benefits to sponsored messages on LinkedIn for both advertisers and users:
- For advertisers:
- Highly targeted – They can precisely target their ideal audience.
- High open rates – Sponsored messages tend to get much higher open rates than regular emails.
- Brand safety – Messages are only sent to people who are members of LinkedIn.
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For users:
- Relevant value – Messages are tailored based on the user’s profile so they can receive content they may actually find useful.
- No extra work – Messages appear right in the existing inbox so users don’t have to go out of their way.
- Transparent labeling – The “Sponsored” tag clearly marks these as ads so users know to expect promotional messaging.
Many users may find sponsored messages useful if the targeting is done well. If executed effectively, they can provide relevant industry news, content and job opportunities without users needing to seek it out.
Cost of Sponsored Messages
For advertisers wanting to use sponsored messages, LinkedIn charges on a cost-per-send and cost-per-click basis. Rates vary based on factors like target audience, level of targeting, and current demand.
Cost per send ranges from around $3-5 per message sent. Note that advertisers are not charged for messages that are not opened. Cost per click rates are around $5-10.
Minimum monthly budgets to run sponsored messages start at around $500/month. Overall costs can range from a few thousand dollars to hundreds of thousands per month depending on the advertiser’s goals and target audience size.
Differences from Regular Messages
While sponsored messages may appear alongside other messages in a user’s LinkedIn inbox, there are a few key differences compared to regular messages:
- Sponsored messages include a small transparent “Sponsored” tag to denote them as ads.
- The sender displays as the name of the advertiser, not a person’s profile.
- Clicking on the sender goes to the company page, not a personal profile.
- Conversion actions like “Apply now” lead to the advertiser’s site, not LinkedIn.
- Sponsored messages disappear when the ad campaign ends. They don’t remain as conversations.
These differences allow users to distinguish sponsored messages from regular messages sent by their network contacts.
Are Sponsored Messages Effective?
Studies have shown sponsored messages on LinkedIn to have higher open and click-through rates compared to email ads. According to LinkedIn, InMail messages have up to 40% higher open rates and 150% higher click-through rates than regular email campaigns.
Reasons why sponsored messages tend to perform well include:
- Appearing directly in the native inbox gets higher attention and engagement vs. external emails.
- Targeting by job role and professional interests allows for highly relevant messaging.
- Messages come from known brands on the LinkedIn platform, lending credibility.
- The streamlined professional nature of LinkedIn inboxes leads to higher open rates.
However, as with any advertising, performance ultimately depends on the quality of the creative, targeting, and offer. Well-crafted messages aligned to the right audience with a compelling call-to-action tend to perform best.
Best Practices
Here are some best practices for both advertisers and users when it comes to sponsored messages:
- For advertisers:
- Target carefully – Don’t spray and pray. Zero in on the ideal roles and companies.
- Personalize content – Use dynamic fields to customize messages with the recipient’s name, company, role, etc.
- Be transparent – Clearly identify yourself as the advertiser. Don’t try to masquerade as a contact.
- Add value – Provide useful insider tips, data, or insights instead of a hard sales pitch.
- Measure results – Track opens, clicks, conversions, and optimize based on performance.
- For users:
- Check the sender – If it’s an advertiser, expect a promotional message.
- Read selectively – Focus only on messages that seem relevant and valuable to you.
- Limit sensitive info – Be cautious about sharing personal details with advertisers.
- Leverage value – Take advantage of relevant offers and resources that align with your interests.
- Give feedback – Utilize LinkedIn’s feedback options to improve relevance of future ads.
Closing Thoughts
Sponsored messages allow advertisers to reach the highly engaged professional audience on LinkedIn with relevant and useful content. When executed effectively, they can provide value to both advertisers and users.
The key is honest, transparent messaging that aligns to the user’s professional interests and goals. Maintaining respect for the user’s experience and privacy will lead to the best results for all parties involved.
With the right strategy and approach, sponsored messages can be a “win-win” – enabling brands to connect with their target audience, and helping professionals stay informed and advance their careers.