Are LinkedIn Ads Worth It?

Are LinkedIn Ads Worth It?

5 min
23 May 2022


Brands constantly seek avenues to enhance their online presence and connect with their target audience. Amidst the many options, LinkedIn ads have emerged as a promising platform for professionals and companies alike. However, navigating the complexities of a new platform can take time and effort, leading many to turn to specialized expertise offered by LinkedIn ads agencies

As the site cements itself as a marketing mainstay, a critical question lingers: Are LinkedIn ads worth the investment? In this article, we’ll dissect the effectiveness, costs, and potential benefits of LinkedIn advertising.

What are the Benefits of LinkedIn?

LinkedIn ads are a powerful means to construct backlinks, foster leads, unearth opportunities and boost website traffic. They are an effective way to build backlinks, generate leads, create opportunities, and increase traffic to your website. Using a unique objective-based advertising system, LinkedIn lets advertisers choose between three different pay models: cost-per-click (CPC), cost-per-impression (CPM), or cost-per-send (CPS). 

By taking advantage of these differing pay models, LinkedIn ads can be effective for businesses of all sizes. With over 690 million professionals, LinkedIn offers businesses the flexible opportunity to advertise to their industry peers.

Exploring the Ideal Audiences for LinkedIn Advertising

LinkedIn ads stand out from other platforms like Facebook, YouTube, and Instagram ads because they focus on B2B (business-to-business) marketing. You can organize LinkedIn advertising campaigns based on certain target audience attributes. Your brand can target companies, certain professionals, industries, job titles, seniority, skills, schools, interests, or a combination of several of these audience factors.

A screenshot of the LinkedIn ads campaign manager.

How Much Do LinkedIn Ads Cost?

The cost of LinkedIn ads varies based on several factors, with one key element being the cost-per-click (CPC). Like Google Ads, LinkedIn’s CPC model operates on a bidding system where advertisers set their desired bid amount. To secure an ad placement, you must outbid competitors. For example, if you bid $1.00 and a competitor bids $0.90, you’ll win the spot, paying only slightly more than the next highest bid, in this case, $0.91.

LinkedIn employs two distinct payment models for advertising. The first is CPM, which stands for cost-per-impression. These campaigns prioritize brand awareness over click conversions. They are priced according to the number of people who view them. The second model, CPS, or cost-per-send, applies explicitly to message ads. With CPS, the cost is determined by the number of messages successfully delivered.

These costs are affected by the demand for your target audience and existing bids. The minimum budget for a LinkedIn ad campaign is $10 per day, which serves as a solid starting point. However, increasing the daily budget to $180 or more has been shown to significantly impact results.

A screenshot of a LinkedIn ads campaign.

Types of Advertisements

LinkedIn offers a wide range of ad types including text ads, sponsored content, and message ads. Check out examples of LinkedIn ads below.

Text Ads

Creating text ads is remarkably straightforward and cost-effective. These ads are ideal for small businesses or those experimenting with simple ad campaigns.

Sponsored Content

Sponsored content is prominently featured in LinkedIn feeds. It’s pricier per click than text ads, but sponsored content is highly effective because it seamlessly integrates with standard posts. Sponsored content includes image ads and carousel ads.

Message Ads

Message ads have the highest price tags, but they yield exceptional results. These ads allow direct outreach to your audience’s inboxes. If you effectively utilize LinkedIn messaging, you can expand your reach to new audiences and boost conversions.

A screenshot of a LinkedIn feed.


The overall click-through rate (CTR) for LinkedIn ads hovers around 0.6%. This may appear modest, but targeting high-quality businesses or professionals makes a difference. It’s also essential to examine your ad results to reveal new opportunities. For example, sponsored content boasts a 1% CTR, whereas message ads achieve a 3.6% CTR.

When examining the results from your LinkedIn ads campaign, what truly counts are conversions and the cost-per-conversion. The Performance tab provides accurate metrics for calculating these crucial factors, enabling you to conduct a cost-benefit analysis. This analysis involves dividing the amount paid for the ad by the business generated from those conversions.

Final Evaluation 

So, what’s the verdict? Without a doubt, LinkedIn ads are a worthwhile investment for businesses looking to expand their reach. LinkedIn offers a platform for generating high-quality leads through meticulous targeting and various ad formats. Whether aiming to boost brand awareness or drive conversions, LinkedIn ads consistently demonstrate their efficacy in delivering results. Ready to elevate your advertising strategy on LinkedIn? Let Adspace be your dedicated LinkedIn ads agency and unlock the full potential of your campaigns today.

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