LinkedIn is a hugely popular social networking site geared toward professionals. Founded in 2003, the site counts more than 1 billion members from 200 countries. It’s a highly influential platform, with active individual members using LinkedIn to post thoughts and ideas, job search, and connect with current and former colleagues.
LinkedIn has also become a primary channel for businesses to advertise, since it has an engaged and focused audience, many of whom are business decision-makers. SocialPilot found that there were 15.4 billion LinkedIn sessions in Q3 of 2022 alone. That volume of views and clicks is ripe for creative, targeted ads.
How Does LinkedIn Work?
LinkedIn is a social media platform, with search functions, profile pages, and other common features. It’s designed to showcase individuals and businesses alike, so that companies can publish their own posts, while individuals can highlight their work experience. Recruiters can research potential candidates on LinkedIn, while job seekers can learn about roles, hiring managers, and shared connections. Individuals use LinkedIn to build their influence, become thought leaders, and network.
Companies use LinkedIn to promote their products and services, build their brand, hire candidates, and publish thought leadership content. In addition to organic activities, businesses can use LinkedIn for ads, since it offers a variety of ad formats and a step-by-step process for advertising. It’s a type of pay-per-click (PPC) tactic to add to the marketing mix of social media and search advertising, and it has its own unique requirements and best practices.
What Are LinkedIn Ads?
LinkedIn ads are LinkedIn’s paid advertisements as part of its offerings. LinkedIn Ads can be useful at all stages of a business’ marketing funnel, whether it’s boosting brand awareness or converting prospects to buyers. Because LinkedIn is tailored to the world of business, its ad program can offer a lot of options for companies of all sizes.
Benefits of Advertising with LinkedIn Ads
Flexibility
LinkedIn doesn’t require a deep investment or commitment to start using its ads. Your business may decide to promote one or two pieces of content over a few weeks as a way to test the channel or gain more website clicks. Or, you can create an extensive campaign that uses graphics, video, and more to attract new prospects.
Specificity
LinkedIn Ads is objective-based, so you can build a campaign around a particular business goal. Because LinkedIn is so work-oriented, you can set criteria around job title, industry, and more to make sure the right people see your ads.
Variety
LinkedIn Ads can take various forms depending on your creative resources, budget, and marketing goals. Ads can be as simple as a text ad or as complex as a carousel of custom graphics.
Drawbacks when Advertising with LinkedIn Ads
Higher CPC
LinkedIn Ads tend to have a significantly higher CPC compared to Facebook or Google Ads and high bidding costs for competitive audiences, which make it challenging to SMBs and startups to achieve their desired ROI.
Restricted Campaign Scaling
LinkedIn’s user base is smaller than Facebook or Google. Certain industries or niches may have limited audience availability, restricting the scale of campaigns.
Lower Engagement & Click-Through Rates (CTR)
LinkedIn members’ main interest lies in professional networking. Users may ignore ads unless they are highly relevant to their professional needs, which results in decreased engagement rate depending on your business.
Lack of Creatives Optimization
LinkedIn lacks some sophisticated AI-driven ad optimizations found on Meta, Google and realize:. Limited ad creatives and interactive elements can make it harder to experiment with engaging ad formats.
Slower Conversion Cycles
Since conversions take longer in B2B decision-making processes, the full funnel process on LinkedIn – from awareness to conversion – will slow down your conversion rates. Ideally, performance marketers should be focusing on mid-to-bottow stages of the funnel to optimize for ROI.
Weak Retargeting Options
While LinkedIn does offer Matched Audiences for retargeting, it doesn’t offer retargeting options like other platforms. In addition, limited cross-device tracking and cookie-based targeting can make retargeting less effective.
Complexity & Learning Curve
LinkedIn requires more manual setup for optimization, and may not be as users friendly to advertisers who are unfamiliar with B2B marketing tactics.
Get AI-driven performance at scale, unique 1P data for unmatched targeting and creative flexibility
The 4 Types of LinkedIn Ads
LinkedIn Ads fall into four categories. The type you choose will depend on your campaign’s goals, including the funnel stage you’re focused on, along with your budget. With any LinkedIn Ad, you can repurpose or repromote existing content, or create social-first content.
When choosing an ad type, LinkedIn’s Forecasted Results feature will dynamically show the likely costs for each ad type so you can make a decision based on budget. Here’s a breakdown of each category of ad, the formats available within each of them, and how they can be best used.
1. Sponsored Content
Sponsored content is a type of native ad that shows up directly in LinkedIn members’ feeds. These ads are labeled “promoted” so that users can tell they’re ads. Within sponsored content, you have a good deal of flexibility on the type of content you can feature, such as video, graphics, topical thought leadership, and more. Since this type of content will reach audiences directly, make sure it’s engaging and uses direct messaging. You can target prospects at the top of the funnel or mid-funnel with sponsored content, depending on your goals.
Sponsored content offers these ad format options:
- Single-image ads.
- Video ads.
- Carousel ads.
- Event ads.
- Document ads.
- Thought-leader ads.
2. Sponsored Messaging
These ads are just what they sound like — direct messages to prospects in your target audience. These come in two flavors: Message ads and conversation ads. Message ads are straightforward messages with links or CTAs, while conversation ads provide a chat-like experience. For both of these formats, targeting and personalization are key to getting solid results.
3. Dynamic Ads
The Dynamic Ads option incorporates LinkedIn’s personalization technology, so you can adapt your content to each of your prospects based on their profile data. They include LinkedIn Follower ads and Spotlight ads. These ads are short, so use copy wisely to entice audience members to click through. Make sure to test layouts before posting, include a CTA, and A/B test frequently.
4. Text Ads
Text ads are very straightforward, appearing on a user’s LinkedIn sidebar. The quality of the copy is essential for these, so play around with compelling, short content to see what attracts your audience. Keep in mind that text ads only appear on the desktop version, not on LinkedIn’s mobile app. Text ads can be a smart way to use your budget, since they’re cost-effective and very visible to users. You can also add images if they make sense.
10 Different LinkedIn Ads Formats
Within LinkedIn Ads categories, you can employ a variety of formats. Each delivers particular benefits, and over time, you’ll find the ad format or mix of formats that works best for your business and audience goals. While it’s easy to use the simplest or first ad format that’s familiar, experimenting with others, like carousels or video ads, can bring a lot of value. The different ad options for LinkedIn include the following formats.
1. Single Image Ads
Single-image ads can help generate awareness and are a popular type of LinkedIn ad for companies. They’re familiar to users, contain a single image, and appear directly in users’ feeds. Invest some time into experimenting with which types of images are most compelling for prospects.
2. Carousel Ads
Carousel ads are useful for awareness-building and can also be employed at the mid-funnel stage to educate prospects in a more visual format. Consider ways you can use carousel ads for data storytelling by adding new information or repurposing content in a more engaging, graphic way. Make sure to take advantage of the description field to add your messaging and CTA.
3. Conversation Ads
Conversation ads can be a great tool when you’ve narrowed in on who your audience is and what problems they need solving. These ads will show up in your prospects’ messaging feed. Use them at the consideration or conversion stage.
4. Document Ads
This type of sponsored content is generally a good mid-funnel option. Document ads can be an effective way to share your published content to engage readers looking for more in-depth information. The document will show up directly in users’ feeds, so consider how you might promote a valuable whitepaper, ebook, case study, or other document to attract audiences.
5. Video Ads
Short videos — less than 30 seconds — have higher view completion rates and should have subtitles and sound-off viewing built in. Video ads can be useful for mid-funnel lead nurturing to educate or entertain your audience with relevant topics.
6. Event Ads
Event ads are great to help build awareness of your company’s products or services and reinforce topic expertise. They can also engage prospects at the mid-funnel to encourage attendance at a virtual or live event.
7. Follower Ads
Follower ads can also be effective in building awareness, since they show up on the right rail of a user’s LinkedIn feed, asking the user to follow the brand. A type of dynamic ad, follower ads incorporate personalization features to attract your target audience.
8. Lead-Gen Forms
Lead-gen forms can be a powerful tool for pulling in leads at the conversion stage of the funnel within LinkedIn itself. Your audience will get a pre-filled form with their profile data, so it’s simple for them to provide their information.
9. Spotlight Ads
Spotlight ads are useful for awareness-building, highlighting your business’ products and services, and directing users to your site once they click on the ad. LinkedIn includes personalization features in these dynamic ads.
10. Single Job Ads
These ads promote a specific job at your company as you’re trying to increase applicants for a high-visibility or high-value role. These may not have the same marketing goal as the other formats, but can still lend credibility and authority to your brand.
LinkedIn Targeting Options
LinkedIn’s broad business audience and huge number of members means it can offer lots of detailed targeting options. This is one of the primary benefits of advertising on LinkedIn. In addition, LinkedIn members normally update their profiles regularly, since they’re using the site for networking, job hunting, or other activities where recency matters. LinkedIn targeting options include these areas:
- Job experience, including job title, seniority information, job skills, years of experience.
- Education, with information about schools, degrees, and majors or fields of study.
- Demographic details like age and gender.
- Company data, such as the industry, size, name, connections, market segment, and more.
- Interests described in the profile, like group affiliations.
- Other options such as matched audiences (users who have interacted with your brand) or lookalike audiences (those who have similar characteristics to those in the matched audience).
How to Advertise on LinkedIn in 5 Steps
To create ads directly in LinkedIn, you’ll go through five steps in the LinkedIn Campaign Manager. If you’re using another platform that integrates with LinkedIn Ads, like Hootsuite or Hubspot, you can create ads there. Follow these steps to get started.
1. Decide on the Goal
This is a good time to consider, if you haven’t already, which stage of the funnel you’re targeting with your LinkedIn advertising. LinkedIn ads can be used at any of the typical three marketing funnel stages — awareness, consideration, and conversion or purchase. The LinkedIn Campaign Manager will ask you to choose one as you get started.
2. Pick the Audience
One of the big benefits of advertising on LinkedIn is the ability to target specific audiences by job title, industry, geography, and more. You’ll likely spend some time testing out assumptions through LinkedIn targeting, and you can take advantage of its Predictive Audiences feature to ground your assumptions using your company’s own data. LinkedIn also offers Audience Insights and Matched Audiences features to help you target accurately. Make sure to keep an open mind on who might be a buyer or a purchase influencer for your products or services.
3. Choose the Format
There are four types of ad campaigns you can create on LinkedIn: Sponsored content, message ads, dynamic ads, and text ads. As discussed above, each offers its own benefits, so choose wisely based on your budget and overall goals. Keep in mind you can use each of the four options in combination, so think about how you can promote and reiterate your messaging strategically on LinkedIn. Be sure to include conversion tracking throughout!
4. Establish the Parameters
LinkedIn Ads uses a bid system to charge for the campaign you’re creating. The bid options are cost per send (for message ads), cost per click (for consideration or conversion), and cost per impression (most appropriate for awareness campaigns). Also consider the LinkedIn Ads auction system, which rewards engagement. You can set the budget daily or set the total amount for the entire campaign.
5. Scrutinize the Data
A major upside of digital advertising like LinkedIn Ads is that you can quickly start and stop campaigns. If you aren’t seeing success in the data initially, try testing one variable at a time, or ceasing the ads if you’ve already done some testing. Put some of your budget behind a new ad campaign so you can gather more data quickly and make any necessary tweaks.
LinkedIn Ads Best Practices
Accurate Targeting
With more than 1 billion members, LinkedIn offers a great opportunity for potential prospects to see your ads. Getting the right eyes on your content is essential to succeeding on LinkedIn. While there are lots of targeting options — more than 20 different audience attributes — try not to go too detailed at first. Start more broadly, then use the data on who viewed your ads (or took action) to continue refining your targets.
Creativity
LinkedIn is a business-first platform, but it’s still a social media platform. Users respond immediately to content that’s eye-catching, valuable, and resonates with their work identity. Consider how you might create social-first content, like LinkedIn Live events, or repurpose existing content in clever ways, such as building a carousel from existing graphics or infographics.
Constant Measurement
With LinkedIn Ads, you have lots of options, but you’re also competing for attention from busy users on a busy platform. You can check the performance of your ads daily using LinkedIn’s analytics tools, gauging click-through and conversion rates to see what’s working and what’s not. Use this rich data to make adjustments as you go, perform A/B testing with copy, CTAs, and creative, or discontinue ads if they just aren’t working.
Key Takeaways
LinkedIn’s global audience is engaged and has their career in mind when they log in. The platform can be valuable to any company that’s willing to do some testing and serve up useful content. When you can match your target audience with your content, LinkedIn can help build awareness, educate prospects, generate leads, and encourage conversions and sales.
Frequently Asked Questions (FAQs)
What is the minimum spend on LinkedIn?
LinkedIn’s recommended minimum spend for new advertisers is $25. For existing advertisers, the platform recommends $50 to $100 in minimum spend. Considering its higher costs, advertisers should also explore LinkedIn alternatives.
What is the average budget needed to successfully run LinkedIn ads?
LinkedIn Ads’ average budget ranges widely, since businesses of any size can advertise. The online auction system allows businesses to place competitive bids for your ads to get placed.
Can I market my small business on LinkedIn?
LinkedIn is a wise option for small business marketing, since you can get started without a lot of overhead. Creating a company page is the first step to market a small business on LinkedIn, making sure it’s regularly updated. Run an ad campaign with your available budget to target your audience and learn from the results.
