Both sponsored content and LinkedIn ads allow businesses to promote their brand and reach new audiences on LinkedIn. However, there are some key differences between these two LinkedIn marketing options that brands should understand before determining the best strategy for their business.
What is LinkedIn Sponsored Content?
LinkedIn sponsored content refers to branded articles, images, infographics, or other media that businesses can promote to LinkedIn users. This sponsored content appears in the LinkedIn feed just like regular user-generated content. However, sponsored content is labeled as “promoted” so users know it is paid advertising.
With LinkedIn sponsored content, businesses have a few options:
- Promote existing content published on their LinkedIn Company Page or Showcase Pages
- Boost content they have shared on their personal LinkedIn profile
- Promote content hosted off of LinkedIn, such as on their website blog
- Publish new sponsored content directly on LinkedIn
The goal of sponsored content is to organically insert branded messaging into the LinkedIn feed to increase awareness, build credibility, and drive traffic. It aims to provide value to the LinkedIn community rather than be overt advertising.
What are LinkedIn Ads?
LinkedIn also offers paid advertising options similar to platforms like Facebook or Google. These LinkedIn ads allow businesses to pay for visibility and target specific audiences based on LinkedIn user data like job title, industry, interests, location, and more.
Some of the LinkedIn ad formats include:
- Sponsored InMail – Directly contact LinkedIn members via personalized messages in their inbox
- Text Ads – Insert short text ads into the LinkedIn feed
- Dynamic Ads – Highly targeted ads that showcase specific products/services to interested users
- Conversation Ads – Spark discussions by posting an ad that users can comment on
The objective of LinkedIn ads is to directly promote a brand, products, services, offers, or other calls-to-action. They are designed to generate leads, website traffic, and conversions through clicks.
Key Differences
Now that we’ve defined both options, here are some of the key differences between sponsored content and LinkedIn ads:
Native Appearance
Sponsored content looks like any other user post on LinkedIn and appears directly in the feed. LinkedIn ads have a more promotional appearance and are clearly labeled as “ads” separate from regular feed posts.
Audience Targeting
LinkedIn ads allow for precise targeting of audiences using LinkedIn member data. Sponsored content appears in the general feed and cannot be targeted to specific groups in the same way.
Objective
The goal of sponsored content is to provide value, raise awareness, and establish thought leadership. The goal of LinkedIn ads is to generate clicks, leads, and direct conversions.
Cost Model
LinkedIn ads work on a pay-per-click (PPC) pricing model – you only pay when someone clicks your ad. Sponsored content pricing is based on impressions, so you pay each time your post appears in someone’s feed regardless of engagement.
Engagement
Sponsored content can be commented on and shared just like organic posts to stimulate engagement. LinkedIn ads do not include comment or sharing capabilities by default.
Use Cases
Now that we’ve compared the two formats, here are some best-use cases for each LinkedIn paid option:
Best Uses for LinkedIn Sponsored Content
- Establishing thought leadership and industry expertise
- Promoting long-form blog content
- Boosting brand awareness and credibility
- Targeting highly-specific audiences like IT decision makers
- Driving organic engagement and word-of-mouth sharing
Best Uses for LinkedIn Ads
- Promoting products, services, offers, or events
- Generating inbound leads with call-to-action clicks
- Retargeting visitors who already engaged with your brand
- Promoting content offers like gated resources
- Reaching broad target audiences across industries
Incorporating Both Strategies
For many brands, utilizing both sponsored content and LinkedIn ads can be an effective approach. Sponsored content builds awareness and credibility that then primes audiences for your LinkedIn ads focused directly on conversions. Both formats allow you to reach audiences throughout different stages of the purchase funnel.
Here are some ways to incorporate both into your overall LinkedIn marketing strategy:
- Use sponsored content to engage audiences and establish expertise. Then follow up with LinkedIn ads to drive clicks to your website or offers.
- Promote your best-performing organic content posts as sponsored content. Then build targeted ads to reach those interested audiences.
- Develop a content promotion calendar with a mix of sponsored posts and ads mapped to your goals.
- Analyze performance data to determine ideal content topics and audiences for each format.
Measuring Performance
To determine the optimal mix of sponsored content vs. ads, you need to align metrics and reporting with your overall business and marketing objectives.
For sponsored content, important metrics can include:
- Impressions
- Engagement rate
- Click-through rate
- Conversions from clicks
- Cost per thousand impressions (CPM)
For LinkedIn ads, key performance indicators may include:
- Impressions
- Clicks
- Unique clicks
- Click-through-rate (CTR)
- Cost per click (CPC)
- Leads or conversions generated
Analyze both promotional formats over time to determine the right blend for your goals and continue optimizing based on performance.
Key Takeaways
Here are the key differences between LinkedIn sponsored content vs. LinkedIn ads:
| Sponsored Content | LinkedIn Ads |
|---|---|
| Native appearance in the LinkedIn feed | Clearly labeled as “ads” |
| Objective is to provide value and raise awareness | Objective is to generate clicks, leads, and conversions |
| Pricing based on impressions (CPM) | Pricing based on clicks (CPC) |
| Able to generate engagement | Limited engagement capabilities |
Used together, sponsored content and LinkedIn ads can help you reach and influence audiences across all stages of the purchasing process. Determine the right mix for your business goals by continually measuring performance and optimizing your LinkedIn marketing strategy.
Frequently Asked Questions
Can you target specific audiences with LinkedIn sponsored content?
No, LinkedIn sponsored content appears in the general feed and cannot be targeted to specific job titles, industries, interests, locations, etc. like LinkedIn ads. However, you can select relevant keywords and topics to help reach your ideal audiences.
What types of content can you promote as sponsored on LinkedIn?
Many formats are eligible for LinkedIn sponsored content including articles, images, infographics, PDFs, presentations, and videos. You can natively upload this content or promote content hosted externally.
How much do LinkedIn sponsored posts cost?
LinkedIn sponsored content pricing is based on cost-per-thousand impressions (CPM), which is typically $10-$30. The exact rate depends on factors like audience demand and post quality. LinkedIn ads can range from $2-$15+ per click depending on targeting and competition.
Can you promote content on LinkedIn without a Company Page?
No, having an active LinkedIn Company Page is required to create and sponsor content. All sponsored posts must be published and promoted through a Company Page, not a personal profile.
What ad formats does LinkedIn offer?
Popular LinkedIn ad formats include Sponsored InMail, text ads, dynamic ads, Conversation Ads, and more. You can promote a range of assets from text to images to videos across these placement options.
Conclusion
In summary, sponsored content and LinkedIn ads both have benefits for reaching the right audiences on LinkedIn. Sponsored content is great for thought leadership and engagement, while ads focus directly on conversions. Most brands find success in utilizing both formats strategically to achieve awareness, credibility, and customer acquisition goals.
Analyze performance metrics for each and continue to optimize your mix based on what delivers the best results aligned to your business objectives. With the right combination, LinkedIn’s paid advertising options can help you effectively connect with professional audiences and drive measurable impact.
