The question of pricing on LinkedIn Ads is one that often comes up. Linkedin is often described as an "expensive" channel. And while the average CPM (i.e. the price per 1,000 views) is indeed higher than on other platforms, you'll find that this doesn't make the platform any less interesting in your acquisition mix.
In this article I give you a general benchmark of Linkedin advertising prices, present the different pricing options and, most importantly, share some (secret 🤫) strategies for managing your Linkedin Ads and keep your costs down.
The different pricing models on LinkedIn Ads
Before getting started, let's take a look at the billing methods on LinkedIn Ads.
Note: You can go to your campaign settings under "Budget and scheduling" if you want to track directly on the platform.
Several models are available: cost-per-click (CPC), cost-per-thousand impressions (CPM), cost-per-send (CPS) for Sponsored InMail campaigns, and cost-per-view (CPV) for videos.
These "bidding strategies" as we call them, depend on the campaign objective selected. This table sums it all up.
| Campaign objective | Optimization objective | Available billing methods |
| Brand awareness | Reach & Impressions | CPM (Cost per thousand impressions) |
| Traffic to the website | Clicks & Impressions | CPM (Cost per thousand impressions) CPC (Cost per click) |
| Commitment | Clicks & Impressions | CPM (Cost per thousand impressions) CPC (Cost per click) |
| Video views | Video views & Impressions | CPM (Cost per thousand impressions) CPV (Cost per Video View) |
| Lead generation | Leads & Clicks & Impressions | CPM (Cost per thousand impressions) CPC (Cost per click) |
| Conversions on site | Conversions & Clicks & Impressions | CPM (Cost per thousand impressions) CPC (Cost per click) |
These models each have their own advantages and disadvantages, which we explain below.
Cost Per Click (CPC)
Preferred on LinkedIn Ads, CPC allows you to pay only when a user clicks on your ad.
💡 Stay until the end, as I share some tips for lower the cost of your LinkedIn Ads broadcast.
Cost Per Thousand Impressions (CPM)
CPM charges you for every thousand times your ad is seen, regardless of the clicks it receives.
Cost Per Video View (CPV)
Cost per view, calculated by dividing the cost by the number of views. As some video views may be free in the case of organic reach (views resulting from members sharing your ad), only paid views are included in CPV.
Note A view = a view of two or more successive seconds when the video is at least 50% on screen.
Cost Per Message (CPS)
Exclusive to Sponsored InMail campaigns, this CPS pricing allows you to send personalized messages to LinkedIn users' inboxes.
Understanding the factors influencing the price of a LinkedIn Ads campaign
The cost of your LinkedIn ads is determined by several factors, some under your control and some not.
1 - The type of advertising chosen
LinkedIn Ads offers a variety of advertising formats;
- Images Ads
- Text Ads
- Message Ads,
- Video Ads
- Document Ads
Each with its own specific features. Your selection has a direct impact on the cost of the campaign. Here are the values observed and shared by AJ Wilcox, renowned LinkedIn Ads consultant in the US.
Source : https://www.linkedin.com/pulse/linkedin-ad-benchmarks-aj-wilcox/
| Type of advertising content | Average click-through rate (CTR) | Average cost per click (CPC) |
| Sponsored Content (Images, videos, etc...) | 0.44% | 8€ - 11€ (may rise to 15€ - 20€ in certain cases) |
| Text & Dynamic Ads | Text Ads: 0.025%; Dynamic Ads: 0.08% | Text Ads: €3 - €6; Dynamic Ads: €6 - €8 |
| Sponsored Messaging | 3.2% (average opening rate of 55%) | 0.50€ - 1€ per shipment, equivalent to CPCs of €25 to €60 |
It should be noted that this benchmark is based on the US market, but it gives an idea of prices and differences between formats.
I observed one of our accounts on the FR market for two Sponsored content campaigns and the order of magnitude is the same: €11.46 / click.
2 - Auction options
Beyond the choice of advertising format, bidding strategy also has an impact.
Optimization objective
The optimization objective corresponds to the billing method you choose: impressions, clicks or video views. By default, this setting corresponds to your campaign objective. Ads will be displayed to members who are most likely to perform the action that will give you the desired result.
Bidding strategy
Your strategy determines how you spend your budget to achieve your goal. There are three possible bidding strategies on Linkedin Ads.
- Maximum diffusion (automatic): Uses Machine Learning to make automatic bids.
- Cost ceiling: You define a cost per key result.
- Manual bidding: You specify the maximum amount you are willing to pay per key result.
💡 Stay until the end, as I share some tips for lower the cost of your LinkedIn Ads broadcast.
3 - Level of competition and size of target audience
LinkedIn Ads relies on a real-time bidding system, deciding which ads are displayed to members. The cost of bidding is affected by demand for the target audience. The more intense the competition for a specific audience, the higher the cost of winning an auction.
Also, broadcasting a campaign to a smaller audience is likely to increase your bid price: the LinkedIn algo being more constrained.
The minimum audience size required to run an ad campaign is 300 members, but LinkedIn specifies that you should aim for a minimum of 50,000 members to generate satisfactory results for your campaign.
If you would like to know more about good targeting practices on Linkedin, I recommend this article
Best practices for managing budgets and investments on LinkedIn Ads
To optimize your advertising campaigns on LinkedIn Ads, it's essential to set a budget that matches your objectives, while carefully managing and optimizing it. Here are some practical tips for controlling your spending and maximizing your return on investment (ROI).
Set a daily or total budget for your campaign
Budget management
On LinkedIn Ads, you can set a daily or global budget for your campaign.
- The daily budget is the maximum amount you are prepared to spend each day,
- The total budget is the maximum amount for the entire duration of the campaign.
I never use the total budget option, except for special events (e.g. limited-time promotions).
Distribution calendar
You can also choose to broadcast the campaign constantly, or set a start and end date.
What budget should you choose to get started with Linkedin Ads?
LinkedIn does not accept budgets of less than €10 per day per campaign.
And you need several campaigns to have a complete account structure.
I recommend that you don't start with too low a budget: below 2000€ / month, it's complicated. Prefer €3000 to €5000 / month to be in the best possible conditions.
Beyond the price of your LinkedIn Ads... Analysis
Thank you for taking the time to read this article. At this point we've covered the pricing of LinkedIn Ads campaigns in a factual and comprehensive manner.
However, I have the impression of leaving you with the feeling that " Linkedin Ads: it's dear"
I do think, however, that in order to get to the bottom of 100% it's important to also talk about what you're buying at this price on LinkedIn.
Channel quality
LinkedIn is the network most used by B2B decision-makers: the network is perceived as a reliable source of information for making professional decisions by a growing proportion of the population.
Timing of your ads
Conversely, other more "recreational" channels, such as LinkedIn, your ads are more likely to reach users at a time of day when they're ready to analyze a solution for their professional activity, and in the presence (or contact) with other decision-makers in the company.
Unique targeting options
LinkedIn is the world's largest B2B platform. This gives you a rich set of targeting options for targeting people based on professional criteria.
The types of content to be sponsored are unique
On Linkedin, it's possible to have a rich content strategy. It's a great place to offer educational, relational and engaging content in addition to sales.
In B2B marketing, the quest for quick wins is a thing of the past. The new model for success is to encourage the growth and relevance of engaged audiences. For this, Linkedin is king.
Not all your competitors are on LinkedIn Ads
Precisely because price is a barrier to entry. And that's precisely why you need to be there.
Properly managed, LinkedIn Ads campaigns are just as ROI-producing as any other.
Finally, not all clicks are created equal. Comparing the price of clicks (CPC) between platforms doesn't make much sense after all.
Rather than reasoning: Interest for the platform = Price of clicks
The equation should be: Interest for the platform = Price of clicks * Relevance of clicks
And under these conditions, LinkedIn undoubtedly outperforms some other channels.
Pricing clicks on LinkedIn Ads: The question lies elsewhere
For all these reasons, I think the right question to ask is:
- Is Linkedin Ads a relevant channel for my business?
- What role should it play in my marketing mix?
Bonus: Control the cost of your LinkedIn Ads (Pro Tips - In bulk)
1. Use manual bidding strategies : On other platforms, intelligent bidding strategies often outperform manual bidding. Not on LinkedIn in general.
Start your campaigns with manual bidding. LinkedIn will offer you a "recommended CPC", start at 80% of the recommended CPC.
Increase them if the budget isn't being spent, decrease them if it's being spent too quickly during the day.
2. Make "video views" instead of sending to the site Choose your target number of views and bid as little as possible per view. You can often convey much more information in a video than by linking to your site, which is ideal for educating your audience in the best possible way at low cost. Choose short videos (under 30 seconds) and incorporate animated subtitles.
3. Using Text Ads Text Ads are not often clicked. This allows your message to reach a wider audience due to their low click-through rate. They are particularly effective for maintaining a constant presence and awareness with your target audience on LinkedIn.
4. Using Document Ads Well-designed, targeted documents can generate a great deal of interaction despite a limited budget, because of the engagement they have the potential to generate.
Conclusion
At this point, you should have a clear picture of the cost of advertising on LinkedIn, including the elements that affect this cost, the different pricing models on offer, and the best approaches for effectively managing your budget and maximizing the return on your advertising investments. LinkedIn Ads are proving to be a first-rate advertising tool for targeting a professional audience, increasing your visibility, acquiring quality leads and realizing your advertising ambitions.
However, to fully exploit the potential of LinkedIn Ads, a solid understanding of digital advertising techniques and strategies is essential. If you're looking for specialist advice on developing, managing or fine-tuning your LinkedIn Ads campaigns, our expert agency is at your service!
