LinkedIn Ads can be a great way to reach potential customers and clients on the world’s best professional networking site. However, if your ads are not performing well, you may not be getting the results that you want.
According to LinkedIn, 40% of marketing specialists see the social network as the best way to drive high-quality leads. That is a good reason why you should consider leveraging LinkedIn ads.
In this guide, we will discuss some of the best ways to improve your ads and the average CTR, CPC, and much more.
If you're not an expert on ads, we'll also cover the critical metrics to understand the LinkedIn system deeply and get more leads immediately. Let's get started.
Important LinkedIn Advertising Metrics
As with any other online advertising platform, it's essential to measure the performance of your LinkedIn Ads campaigns so that you can optimize them for the best possible results.
Here are five important metrics to track when measuring the success of your LinkedIn Ads campaigns.
Click-Through Rate (CTR)
CTR, or Click-Through Rate, is a metric that measures how often people who see your post on LinkedIn click on a link included. A high CTR indicates that your audience is interested in the content of your post and is more likely to engage with it.
Several factors can influence CTR, including the length of your post, the type of content you share, and the size and placement of your call-to-action.
However, one of the most important factors is the headline of your post. A compelling headline will be clear and concise, and it will accurately describe the content of your post, leading users to click on your links.
Cost Per Click (CPC)
Cost per Click (CPC) is another key metric to consider when using LinkedIn Ads. CPC measures how much it costs you to generate a click on your ad, and it can vary depending on the type of ad, your targeting options, and the competitive landscape.
The conversion rate is the percentage of people who take the desired action after viewing your content, such as filling out a form or buying a product. For example, if you have a profile with 100 clicks and 10 people filling out your form or buying your product, your conversion rate would be 10%. Conversion rates vary depending on industry, target audience, and offer.
Cost per Impression (CPM)
The CPM of your ads, or Cost per Impression, is one of those options that you have to consider on LinkedIn. With CPM advertising on LinkedIn, you pay for your ad impressions, generally for every 1,000 impressions.
An impression in advertising is an instance where an ad is shown to a user. In other words, an impression only occurs when an ad is loaded on a page.
The cost per thousand impressions (CPM) is determined by factors such as the size of your ad, the placement of your ad, and the targeting options you select.
Cost per Lead - CPL
The Cost per Lead metric determines how effective your marketing efforts are in producing new leads for your sales department. A lead is a person who has expressed interest in your product or service by completing a goal.
By optimizing your profile and using LinkedIn's various lead generation tools, you can quickly generate a high volume of leads at a low cost per lead. LinkedIn's search engine is very effective at finding relevant leads, and the platform allows you to target your messages to specific groups of people.
In addition, LinkedIn provides useful insights into the people who visit your profile, making it easy to identify hot prospects. By leveraging LinkedIn's features, you can generate a high volume of quality leads at a very low cost per lead.
The LinkedIn Ad Benchmarks You Should Consider
LinkedIn ads can be a great way to reach out to potential customers and clients. Here are a few LinkedIn ad benchmarks you should keep in mind to elevate your strategy:
What is the Average CTR for LinkedIn Ads?
LinkedIn Ads are a great way to get in front of your target audience. What is the average CTR for LinkedIn Ads?
LinkedIn's average CTR for ads is between 0.39 and 0.65% globally, and your ad's CPC can be significantly reduced in regions where LinkedIn isn't as popular.
There are different ad formats on LinkedIn, and the CTR varies depending on the one you choose. Below are some of the most common ones:
- Text Ads: 0.02%
- Dynamic Ads Standard: 0.06%
- Sponsored Content (Carousel): 0.40%
- Sponsored Content (Video): 0.44%
- Sponsored Content (Single Image): 0.56%
What is a Good CTR for LinkedIn Ads?
With a global average CTR for LinkedIn ads of 0.39 to 0.65%, everything above that should be considered an acceptable result. A good CTR should be at least 1%, and everything above that is exceptional.
What is the Average CPC for LinkedIn Ads?
CPC is the amount that an advertiser pays for each click on their ad. LinkedIn Ads are available in numerous countries and can be targeted to a very specific audience.
The global average cost-per-click (CPC) for LinkedIn Ads is $5.58.
Having said this, you can target ads to people based on their job title, company size, or even specific skills that they have listed on their profile and play with this number to eventually pay less.
LinkedIn Ads are a great way to reach out to potential customers and clients who are already interested in what you offer. With a little bit of optimization, you can quickly get your CPC down to a reasonable level.
What is a Good CPC for LinkedIn Ads?
Other than the global average, the figure may increase or decrease depending on the industry and job title. For instance, senior decision-makers average CPC is $6.40 while junior employees' is only $4.40.
Here's a good average per industry is as below:
- Education: $4.90
- Accounting: $5.00
- Engineering: $5.10
- Media and Communications: $5.60
- Human Resources: $6.00
- Business Development: $6.30
- Marketing: $6.80
- Finance: $6.90
- Information Technology: $7.90
While these are also good average CPC numbers, you will see the actual accurate CPC for the chosen audience and region when using the forecasting tool on LinkedIn.
What is the Average CPM for LinkedIn Ads?
The average LinkedIn ad cost per thousand impressions is $33.80. However, this number can vary greatly depending on the company's targeting options.
For example, if a company wants to target a specific job title or industry, it will likely pay more than the average CPM. The good news is that LinkedIn Ads are very effective, with click-through rates (CTRs) averaging 0.39 and 0.65%. This means that for every 1,000 impressions, there are an average of about 5 clicks.
What is a Good CPM for LinkedIn Ads?
With the average being $33.80 per 1,000 impressions, a good CPM ultimately depends on your budget and the audience you're willing to target.
How can you Optimize Your LinkedIn Ads?
LinkedIn Ads are one of the most effective ways to reach your target audience on the world's largest professional network. But, with over 800 million members, it can be challenging to know where to start.
Here are some tips on how to optimize your LinkedIn Ads so you can get the most out of your campaigns:
LinkedIn Location Targeting
LinkedIn location targeting is a great way to ensure that the right people see your LinkedIn Ads. You can target your audience by country, state, region, city, or county. LinkedIn location targeting is an essential tool for any business that wants to make the most of its marketing campaign.
LinkedIn Ads targeting allows you to target your ideal audience by filtering LinkedIn users based on specific attributes. For example, you can target users based on their job title, company name, industry, and even demographics.
You can also target LinkedIn members by their job experience, education, or job title. By targeting your ads to a specific audience, you can ensure that the people who are most likely to be interested in your product or service will see your message.
As a result, you can achieve a higher return on investment for your advertising spent.
Define Buyer Personas
A buyer persona is a fictional representation of your ideal customer, based on real data and research.
You can use a buyer persona to help you create targeted content, ads, and products that appeal to your target market. When creating a buyer persona, it's important to consider factors like demographics, interests, and skills.
For LinkedIn Ads, you'll also want to consider factors like job title, company size, and location. By understanding your ideal customer, you can create content that resonates with them and drives better results.
Other than these three key elements to optimize your ads, we also recommend having a complete and active profile on the profile. According to Hootsuite, these profiles receive five times more visits than incomplete ones and generally have eleven times more clicks per follower, which is a massive help.
With an average CTR between 0.39 and 0.65%, LinkedIn Ads are low in comparison to other social media platforms such as Facebook and Google AdWords.
There are a few ways that you can improve your ad performance, including using images, testing different headlines, and A/B testing your ads.
To summarize, these LinkedIn ad benchmarks can be a great way to reach out to potential customers, and we can't recommend them enough for your next campaign.