#1 Swipe File Building Tool

Saves ads from all major ad platforms and ethically steal copy using AI. 

How Much Do LinkedIn Ads Cost in 2024?

Table of Contents

PC showing LinkedIn account running LinkedIn ads

Staying updated on the costs of LinkedIn ads is essential for businesses and brands looking to maximize their return on investment. Over the years, LinkedIn has become a potent advertising tool for reaching professionals and businesses. 

In 2024, the platform continues to grow exponentially in advertising opportunities, going toe to toe with other big guys, such as Facebook and Instagram. However, one question that advertisers would like to have an answer to is, ‘How much do LinkedIn ads cost in 2024.’ 

Unlike other platforms whose ad costs are known and more accessible, LinkedIn advertising cost is determined by several factors, such as your campaign strategy. Everyone says LinkedIn advertising costs are expensive, but sometimes, it’s not always about price but the value.

Luckily, our team is here to answer all your questions regarding the ad costs of LinkedIn, including exploring the factors influencing the costs and optimization tips to maximize your budget.

How Much Do LinkedIn Ads Cost in 2024?

According to several studies and benchmarks, the average cost is about $5 per click, but that’s just for clicks. LinkedIn advertising costs have witnessed notable changes in 2024, fluctuating based on market dynamics and advertiser behavior. These trends have increased the cost of ads over the years. Plus, the growing popularity of LinkedIn has increased competition among advertisers, further driving the price of ads.

LinkedIn also offers other pricing models to suit your advertising objective and needs. Let’s give you a breakdown of LinkedIn advertising costs to help you make informed advertising decisions. 

The platform has three different pricing models – the usual and more popular cost-per-click (CPC), cost-per-impression (CPM), and cost-per-send (CPS). 

Cost per Click (CPC)

LinkedIn CPC is a prominent pricing model where advertisers pay for each click their ad receives. For example, if the CPC for an ad is $2 per click, you’ll end up paying $200 for 100 clicks. This might be a tad expensive, but remember that these clicks must come from users who can turn into qualified leads.

The bid amount, competition, and ad relevance influence the CPC model. You can set your CPC bid and adjust your budget to suit your campaign. CPC is best for individuals looking to increase website visits or drive traffic to their landing page.

You can use CPC in Sponsored Content and Text Ads. You can choose which your target audience will most engage with.

With this model, you must craft engaging ads to coerce your audience to click. If it’s not engaging enough, you won’t generate enough clicks.

Cost per Impression (CPM)

The CPM pricing model is a better alternative to the expensive CPC if increasing brand awareness is your aim. In this model, you pay for users to see your content instead of clicking.

The average cost of CPM is $6 per thousand impressions. You may be paying more, but in the long run, you pay less than with CPC.

You can use CPM in Sponsored Content and Text Ads too. Based on research, videos perform better than texts using this campaign model since users don’t need to engage. 

CPM allows advertisers to engage with a wider audience. Ad relevance and audience targeting influence CPM pricing. This model might be cost-effective, but optimizing ad creative and targeting is vital to enhance performance.

Cost per Send (CPS)

Cost per Send (CPS) is unique to Sponsored InMail. In this model, LinkedIn charges a fee for each message you send to your target audience. Unlike the CPC and CPM model, which requires payment-based engagement and impression, you only pay when your message is delivered to your clients’ inboxes with CPS.

CPS is ideal for direct communication with potential clients. You can control your ad spending by adjusting your target audience and messaging to improve engagement.

This pricing model is great but can go wrong if you miss the right audience or get the messaging wrong. 

What Types of Businesses Should Use LinkedIn Ads?

LinkedIn advertising is a paid promotional message on the platform. It allows businesses to target professionals and the right audience for maximum conversion. With various ad formats, such as Sponsored Content, Sponsored InMail, and Text Ads, advertisers can uniquely craft their messaging to resonate with their target audiences to drive engagement and conversions. 

Not only that, advertisers can improve brand visibility and credibility, as well as drive traffic to their websites. 

As mentioned, LinkedIn has become valuable for businesses who want to connect with professionals and B2B audiences. Therefore, only certain types can benefit more from LinkedIn advertising due to the platform’s professional-centric environment. Since LinkedIn primarily focuses on professionals, here are the types of businesses that should use LinkedIn for promotion.

  • B2B Companies: B2B companies use LinkedIn to reach other businesses and decision-makers. It’s an ideal platform for offering their products and services. They can also generate leads and increase brand awareness using LinkedIn ads.
  • Finance Industries: Investment firms, insurance companies, banks, and other financial institutions use LinkedIn to target potential clients in the finance sector. These institutions engage.
  • Recruitment Agencies: When it comes to networking and job hunting, no platform is more equipped than LinkedIn. Therefore, it’s no surprise that most recruitment agencies leverage this platform to promote job openings and attract top talents to companies that need them.
  • Professional Services: Businesses in the legal, consulting, or accounting field use LinkedIn to target their specific audience and potential clients on the platform. LinkedIn is the perfect platform for these services because they cater to businesses in specific industries.
  • Technology Companies: SaaS and IT solution providers use LinkedIn to reach out to professionals in the tech industry and potential clients needing their services. LinkedIn unique targeting option allows these companies to tailor their ads to specific interests and audiences.
  • Marketing Agencies: Marketing agencies that specialize in social media and digital marketing also use the platform to showcase their offerings to potential clients. The aim is to expand their customer base through the platform.

Key Factors Influencing the Cost of LinkedIn Ads

The cost of ads on LinkedIn varies according to some factors. If you are to advertise on the platform, consider these key factors to ensure you get the best return on your investment.

  1. Your Campaign Objective

It’s vital to define your LinkedIn campaign goal. What do you intend to achieve with your LinkedIn advertising campaign? Do you want to drive web traffic or promote brand awareness? The campaign objective will define your ad strategy, but that’s not all. It will shape your budget allocation.

For example, if you want to generate leads or convert potential clients, cost-per-click (CPC) bidding will be ideal as it will maximize clicks based on your allocated budget. Conversely, you’ll be better off with cost-per-impression (CPM) to enhance visibility if you intend to create brand awareness.

  1. Ad Format

Ad formats’ costs vary based on effectiveness and visibility. For example, sponsored content costs more than Text Ads due to its users’ feeds’ unique placement. However, that doesn’t take away the effectiveness of sponsored content, as it tends to generate more engagement and clicks than Text Ads.

  1. Your Target Audience

The specificity of your audience significantly determines how costly LinkedIn advertising is. Targeting niche demographics or job titles may lead to a higher ad cost due to the increased competition for these audiences among advertisers. 

Knowing your audience can be fundamental to optimizing your ad budget. Be meticulous in understanding your audience based on demographics, industries, and interests. 

LinkedIn is no different from other ad platforms regarding providing targeting options to help reach the right people. Creating tailored messages to your interests can improve ad relevance and lower overall costs.

  1. Bidding Strategy

Bids are an essential consideration when using LinkedIn for advertising. They can significantly affect costs and even the effectiveness of your ads. The bid type, amount, and model should be tailored to your campaign goals. If you want, you can set bids manually or allow LinkedIn to optimize them for you. Either way, you must experiment with different bidding methods to find the most cost-effective way to optimize your ad.

  1. Relevance Score 

The LinkedIn ad relevance score reflects how well your target audience interacts with your ad. It considers the engagement rate and click-through rate. Try to create a compelling ad that addresses the audience’s pain points and issues. LinkedIn rewards advertisers who serve users relevant, engaging ads by reducing their costs. Therefore, a high ad relevance score enhances performance and lowers ad costs by maximizing the ad’s competitiveness in the auction. 

  1. Seasons

Ad costs on LinkedIn fluctuate based on demand. For example, the commerce industry experiences peak seasons during summer holidays and Christmas. These periods tend to drive up the cost of ads due to a higher competition to sell. Other seasons may see a decline in ad costs due to lower competition.

Are LinkedIn Ads Worth the Money?

Whether LinkedIn is effective or worth the money depends on the type of ad you want to run. But overall, LinkedIn advertising is worth it for businesses who want to connect with a more professional audience. 

With its unique targeting option and efficient analytics, LinkedIn can connect you to the right people. In addition, you can track your ad campaign performance to make the necessary adjustments for better results. Remember to tailor your ad to the right audience. Above all, your ad should be relevant and engaging if you want a significantly lower cost.

What Percentage of Your Overall Advertising Budget Should You Allocate to LinkedIn Ads?

Many have asked, ‘What is a reasonable budget for LinkedIn ads?’ Well! There’s no direct or one-size-fits-all answer to this question. LinkedIn itself has no minimum budget allocation for ads. It all depends on your advertising goals and target audience.

Given that the average LinkedIn advertising cost is about $5 per click, depending on the industry, target audience, and bidding strategy, you should allocate a significantly higher budget to LinkedIn advertising to maximize performance. It shouldn’t be over the top, but enough to run your campaigns effectively while factoring in competition and industry.

Summarily, allocate a budget that aligns with your ad campaign goals. If you’re a newbie, you could start with a modest budget and adjust based on performance.

How to Control Ad Spend on LinkedIn?

LinkedIn offers a plethora of options when it comes to controlling your ad spend. Here are some tips to optimize your ad spend on LinkedIn.

  • Use manual bidding

This option sets a price for each click, impression rate, and send. Manual bidding controls how much you should spend on your campaign. Bid prices vary, and manual bidding can define how much you want to allocate to your ad campaign model.

In addition, consider bidding low rather than bid aggressively. Bidding low and manually can significantly give you more control over your ad spend, and you can adjust your bidding strategies based on real-time data.

  • Target cost

Target cost controls how much you want to spend towards your goal. Once you’ve created your campaign, you should opt for this. LinkedIn will adjust your bid based on your target bid price. You should have an objective when using target cost, as it allows you to optimize for performance. 

  • Choose your ad format

LinkedIn offers four major ad formats – Sponsored Content, Text Ads, Sponsored Inmail, and Dynamic Ads. 

Sponsored Content is video ads, texts, or images shown to users within a specific target audience. Text ads are self-explanatory. They have a lower conversion rate than Sponsored Content.

Sponsored InMail are tailored messages delivered to a potential client’s inbox. Finally, Dynamic Ads uses personalization to target specific users.

  • Create your ads for specific audiences

No two audiences are the same. When creating ads for an audience, make sure it’s specific to their needs and interests. Customize your messaging to address each audience’s pain point. This approach will affect ad relevance by ensuring higher engagement and lowering LinkedIn advertising costs.

How to Create a LinkedIn Advertising Campaign

Creating a LinkedIn ad campaign isn’t simple, but we’re here to guide you on how to do it. Below are the steps to create one.

  1. Select the ad type
  2. Set up your targeting by selecting the company size, industry, job title, skills, etc.
  3. Choose a target audience based on industry, age and gender, education and experience, interests, etc.
  4. Create a budget using the various pricing models (CPC, CPM, and CPS). Also, use the 70%-30% rule, where 70% of your budget will be reserved for targeting conversions and website traffic, while the remaining 30% will be for brand awareness.
  5. Track your campaign performance, ensuring you’re utilizing your budget appropriately.

Leverage SwipeBuilder to Enhance Your LinkedIn Advertising Strategy

Get inspired by examining real-life ads of your competitors. Look at what’s trending and what makes these ads effective, and learn to apply them to your campaign. By leveraging tools like SwipeBuilder, you can learn how to save LinkedIn ads, create catchy titles, and craft compelling ads for your audience.

Get started with LinkedIn advertising today and reach out to other LinkedIn members needing your service!

#1 Swipe File Building Tool

Saves ads from all major ad platforms and ethically steal copy using AI. 

• Save ads from Facebook, TikTok and Google.

• Use AI to write new ads from your competitors

Try For Free 🚀