Cost per mille (CPM), also known as cost per thousand (CPT), is a marketing term used to denote the price an advertiser pays for every 1,000 impressions served. It is a common metric used to assess the cost-effectiveness of online advertising campaigns. For LinkedIn advertising specifically, CPM indicates how much an advertiser pays to have their ads seen by 1,000 members on LinkedIn.com and the LinkedIn mobile app.
Knowing the average CPM for LinkedIn campaigns is important for marketers looking to advertise on the platform, as it helps them determine if LinkedIn ads are affordable for their budgets and make informed decisions about their ad spend. In this article, we will examine the average CPMs for various LinkedIn campaign objectives and ad formats in 2023 to provide benchmarks for LinkedIn advertising costs this year.
What Influences LinkedIn CPMs?
LinkedIn CPM rates are determined by a number of factors related to the target audience, competition, and ad formats used. Here are some of the key factors that impact CPMs on LinkedIn:
– Audience targeting – Narrower targeting based on job title, industry, interests, etc. leads to higher CPMs compared to broader targeting. Targeting a niche audience is more expensive.
– Audience size – Targeting a smaller audience pool typically results in higher CPMs.
– Competition – Higher competition for viewership among advertisers trying to reach the same audience drives CPMs up.
– Ad format – Sponsored content and dynamic ads tend to have higher CPMs than text ads. Video ads have the highest CPMs on LinkedIn.
– Time of year – CPMs fluctuate across quarters and months. January to March tends to have lower CPMs compared to Q4 holidays.
– Offer/messaging – Ads with special offers or discounts tend to have lower CPMs than brand awareness ads.
– Campaign objective – Lead generation and website visit campaigns carry higher CPMs than follower growth campaigns.
Average LinkedIn CPM Rates in 2023
According to LinkedIn marketing experts, the average CPM on LinkedIn currently ranges from $8 to $12 across industries in 2023. However, actual CPMs can vary significantly based on the targeting, competition, ad formats, and campaign objectives used. Here are the typical CPM ranges to expect for top LinkedIn campaign types this year:
Awareness Campaigns
For brand awareness and content marketing campaigns aimed at simply getting an ad in front of a relevant audience, average CPMs are:
– Text ads – $8 – $10
– Sponsored content – $10 – $15
– Dynamic ads – $12 – $18
Consideration Campaigns
For middle-of-the-funnel campaigns focused on driving consideration and engagement, typical CPMs are:
– Sponsored content – $15 – $25
– Carousel ads – $12 – $20
– Video ads – $25 – $35
Conversion Campaigns
For bottom-of-the-funnel campaigns optimized for conversions, average CPMs are:
– Lead generation ads – $40 – $60
– Website visit ads – $25 – $40
– Job ads – $60 – $100
CPM Benchmarks by Industry in 2023
CPM can also vary significantly based on the industry and niche you are targeting with LinkedIn ads. Here are the typical CPM ranges for some major industries this year:
| Industry | Average CPM Range |
| Technology | $15 – $30 |
| Finance | $20 – $50 |
| Healthcare | $30 – $60 |
| Higher Education | $20 – $40 |
| Media & Publishing | $10 – $25 |
| Consumer Goods | $12 – $30 |
| Business Services & Consulting | $30 – $100 |
As shown above, B2B industries like technology, finance, and consulting tend to have higher average CPMs on LinkedIn compared to consumer-focused industries. However, there can be significant variation within industries based on the target audience.
Tips to Reduce LinkedIn CPMs
If your current LinkedIn CPM seems high based on these benchmarks, here are some tips to try to lower your CPM and improve ad efficiency:
Broaden Your Targeting
Avoid narrow targeting by job title or company and instead target wider professional categories or industries. This increases the eligible audience pool and decreases competition.
Adjust Your Bid Strategy
Use automated bidding strategies like target CPA bidding rather than setting manual bids if you want to minimize CPM averages. Let LinkedIn’s algorithms optimize for efficient spends.
Test Different Ad Formats
Text ads tend to have lower CPMs, so test those if you currently only use rich media. Avoid video ads if CPM reduction is the goal.
Create A/B Ad Copy Tests
Try different ad copy, images, and calls-to-action to identify the optimal combinations that resonate best with your audiences. Higher performing ads result in lower average CPMs.
Analyze Performance Trends
Look for days, times, seasons, or audiences that yield lower CPMs and increase your focus on those. Shift budget away from high CPM targeting and times.
Conclusion
Average CPMs on LinkedIn can range widely from $8 to $100+ based on many factors, but most advertisers see CPMs between $15 to $40. By understanding the CPM benchmarks for your industry and campaign objectives, tracking your metrics closely, and testing strategies to optimize your LinkedIn ads, you can aim to keep CPMs as low as possible while still achieving your marketing goals. With regular analysis and optimization, LinkedIn CPMs can be managed at efficient rates that make advertising on the platform feasible and worthwhile for brands and advertisers.