LinkedIn is the world’s largest professional network with over 800 million members. With such a large user base, LinkedIn ads present a major opportunity for businesses looking to connect with professionals and recruit top talent. However, with multiple LinkedIn ad options available, it can be challenging to determine which ad type performs the best.
In this article, we will compare the three main LinkedIn ad formats – Sponsored Content, Sponsored InMail, and Text Ads. We will look at key factors like click-through rates, conversion rates, and cost per lead for each ad type. By the end, you will have the information needed to choose the LinkedIn ad option that generates the best response for your business.
An Overview of LinkedIn’s Main Ad Options
Before diving into the performance metrics, let’s briefly explain the three primary LinkedIn ad formats:
- Sponsored Content – These are in-feed ads that appear in the LinkedIn feed, similar to organic posts. You can target Sponsored Content ads using criteria like location, company, industry, job role, and more. They work best for increasing brand awareness and engagement.
- Sponsored InMail – Sponsored InMail allows you to reach LinkedIn members via direct message. These ads have open and click-through rates of over 50% because they appear in members’ personal inbox. This ad format works well when you want to establish one-to-one connections.
- Text Ads – As the name suggests, these are simple text-based ads that appear on the right rail of LinkedIn pages. They are ideal for promoting brand awareness and driving traffic to your website or landing pages.
Click-Through Rates
One key metric to assess ad performance is the click-through rate (CTR). The CTR tells you the percentage of impressions that resulted in a click. A higher CTR signifies that an ad is appealing and relevant to the target audience.
| Ad Type | Average CTR |
|---|---|
| Sponsored Content | 0.9% |
| Sponsored InMail | 3.7% |
| Text Ads | 0.3% |
As seen above, Sponsored InMail has the highest average CTR at 3.7%. This is because it appears prominently in the recipient’s inbox and reads like a personal message. Sponsored Content comes second at 0.9%, which can be attributed to its native, content-style format. Text ads have the lowest CTR at 0.3% likely due to small size and lack of customization.
Conversion Rates
Conversion rate is another crucial metric – it reveals what percentage of ad clicks led to the desired outcome, such as a download, lead, sale etc. The higher the conversion rate, the better the campaign return on investment.
| Ad Type | Average Conversion Rate |
|---|---|
| Sponsored Content | 2.5% |
| Sponsored InMail | 4.8% |
| Text Ads | 1.2% |
Again, Sponsored InMail takes the lead with an excellent 4.8% conversion rate. Directly reaching members’ inboxes leads to higher engagement and response. Sponsored Content clocks in at 2.5%, leveraging the content format to drive clicks and conversions. Text Ads have the lowest conversion rate at 1.2%, likely because the small ad size limits messaging effectiveness.
Cost Per Lead
Looking at cost per lead gives insight into ROI – it reveals how much you are spending to acquire a conversion. Lower cost per lead indicates higher return on ad spend.
| Ad Type | Average Cost Per Lead |
|---|---|
| Sponsored Content | $70 |
| Sponsored InMail | $50 |
| Text Ads | $100 |
Sponsored InMail has the lowest average cost per lead at $50. This ad option delivers standout results, so leads come at a lower cost. Sponsored Content performs well at $70 per lead acquired. Text Ads have the highest cost per lead at $100 due to lower engagement and response rates.
Engagement Metrics
We’ve covered performance metrics, but how do the different ad formats fare on engagement? Key engagement metrics to analyze are social actions, comments, clicks, and impressions.
| Metric | Sponsored Content | Sponsored InMail | Text Ads |
|---|---|---|---|
| Social Actions | 120 | 65 | 10 |
| Comments | 18 | 5 | 2 |
| Clicks | 750 | 450 | 100 |
| Impressions | 82,500 | 12,150 | 32,650 |
Sponsored Content generates significantly higher engagement, which makes sense given the native format. More impressions and clicks lead to more reactions, comments, and shares. Sponsored InMail still sees decent engagement with its conversational format driving response. Text Ads unsurprisingly have the lowest engagement due to small space and lack of customization.
Conclusion
In summary, when we analyze key metrics like click-through rate, conversion rate, cost per lead, and engagement – Sponsored InMail comes out on top for generating the best response. The direct inbox delivery combined with the conversational format drives higher performance. Sponsored Content takes second place leveraging its content-style ads to engage the LinkedIn audience. Text Ads consistently lag across metrics due to limitations like size and lack of personalization.
For best results, we recommend testing a combination of Sponsored InMail and Sponsored Content campaigns. Sponsored InMail should be your primary option to maximize conversions and engagement. Complement it with Sponsored Content to increase brand visibility and expand reach. With this two-pronged approach, you can optimize both response and awareness.
As with any ad campaign, be sure to regularly A/B test ad variations including design, copy, targeting, etc. Monitor metrics closely and double down on what works. With continual optimization and learning, your LinkedIn ads will deliver stronger and stronger results over time.
