LinkedIn has been a key platform for B2B marketing, offering access to professionals and decision-makers. But with LinkedIn advertising costs rising, is it still worth the investment in 2024? Understanding its pricing, targeting options, and potential ROI is essential for making smart marketing decisions. Carvertise offers an alternative with its rideshare advertising model, combining mobile visibility with digital ad retargeting. Using geofencing, Carvertise captures device IDs of those near car wrap ads, enabling precise retargeting across digital channels. Comparing LinkedIn’s costs with Carvertise’s approach can help businesses decide where their marketing dollars will have the most impact.
Overview of LinkedIn Advertising in 2024
LinkedIn remains a top choice for B2B advertisers in 2024, reaching an audience that includes high-level professionals, decision-makers, and industry experts. With over 900 million members globally, LinkedIn offers advertisers direct access to a pool of users who are often focused on professional growth, industry insights, and networking—making it ideal for businesses looking to connect with an audience ready to engage in a business context.
Types of LinkedIn Ads in 2024
- Sponsored Content: These ads appear in the LinkedIn feed as native content, making them less intrusive and allowing for engagement through likes, shares, and comments. This ad format is effective for promoting articles, videos, and events.
- Message Ads: Delivered directly to LinkedIn inboxes, these ads enable personalized, one-on-one engagement. They work well for lead generation and event promotions, targeting users with specific offers or invitations.
- Dynamic Ads: These personalized ads use member data to craft tailored messages, such as ads that feature a user’s profile picture in the ad itself. Dynamic Ads are attention-grabbing and ideal for driving traffic to a page or generating followers.
- Text Ads: LinkedIn’s simplest format, these ads appear in the right-hand column and top of the page on desktops. They work well for companies aiming to increase brand awareness with a lower-cost, straightforward option.
With these varied formats, LinkedIn offers targeted approaches to engage audiences with different objectives, from brand visibility to direct lead generation, making it a versatile option for B2B campaigns.
Breaking Down LinkedIn Advertising Costs
LinkedIn advertising costs in 2024 are influenced by several key factors, including the ad type, targeting parameters, bidding strategy, and industry competition. Advertisers can choose from various ad formats—each impacting cost differently—such as Sponsored Content, Message Ads, Dynamic Ads, and Text Ads.
Targeting precision also plays a role; LinkedIn offers detailed targeting options (e.g., by job title, industry, company size), which increases costs but allows businesses to reach their exact audience.
Bidding Strategies
LinkedIn’s bidding options—CPC (Cost Per Click), CPM (Cost Per Thousand Impressions), and CPS (Cost Per Send for Sponsored InMail)—let companies decide how they want to pay for engagement. Higher bids improve visibility and placement but can raise the overall campaign budget.
Average LinkedIn Advertising Costs in 2024
- Cost Per Click (CPC): $2.00 – $3.00
- Cost Per Thousand Impressions (CPM): $5.01 – $8.00
- Cost Per Send for Sponsored InMail: $0.26 – $0.50 per message sent
Additionally, LinkedIn has a minimum requirement of $2.00 for CPC and CPM bids, with a minimum daily spend of $10.00. While LinkedIn’s costs are higher than many other platforms, its targeting depth and professional user base often make the investment worthwhile for B2B advertisers focused on reaching highly qualified leads.
LinkedIn vs. Other Platforms: Cost and ROI Comparison
LinkedIn’s advertising costs are generally higher than those on platforms like Facebook, Instagram, and Google, but this premium often brings valuable returns for B2B marketers. Here’s a closer look at how LinkedIn stacks up against these platforms and when each might be the better investment.
LinkedIn vs. Facebook and Instagram
While LinkedIn CPC averages between $2.00 – $3.00, Facebook and Instagram CPC rates are significantly lower, often around $0.50 – $1.00. These platforms are cost-effective for reaching broad consumer audiences and driving brand awareness but can fall short for highly targeted B2B campaigns.
LinkedIn’s precise targeting of job titles, company size, and industry, combined with its professional user base, makes it the preferred option for B2B campaigns where reaching decision-makers matters most.
LinkedIn vs. Google Ads
Google Ads CPC varies widely, with costs ranging from $1.00 – $2.00 on average, though competitive industries like finance and tech often see CPCs much higher. Google is ideal for capturing intent-based traffic through search, while LinkedIn shines when targeting audiences in research or consideration phases.
LinkedIn’s strength lies in its ability to directly target individuals based on professional criteria rather than keyword search intent, making it a stronger platform for brand engagement in B2B contexts.
When LinkedIn Offers Better Value
For B2B brands, LinkedIn’s higher costs can yield a stronger ROI, especially when targeting niche industries, high-value leads, or professionals with specific job titles. LinkedIn is also valuable for complex products or services requiring multiple touchpoints with decision-makers.
When Other Channels Are More Cost-Effective
For broad-reach campaigns, or when targeting a mixed consumer and business audience, platforms like Facebook and Google can deliver better ROI at lower costs. These channels are effective for building initial awareness or driving traffic when specific professional criteria are less critical.
LinkedIn’s targeted reach and professional context make it a powerful, though more costly, choice for B2B brands aiming for high-quality leads, while other platforms remain suitable for lower-cost, high-volume objectives.
Maximizing LinkedIn Ad Spend – Strategies to Boost ROI
To get the most from your LinkedIn ad budget, employing targeted strategies can significantly improve ROI while controlling costs. Here are some effective practices and content tips to maximize results:
1. Refine Targeting
LinkedIn offers detailed targeting options, but broad criteria can inflate costs. Narrow down your audience based on job titles, company size, industry, or specific skills relevant to your offer. Focusing on these key attributes allows you to reach high-intent users, reducing unnecessary ad spend.
2. Choose the Right Bidding Strategy
Experiment with LinkedIn’s CPC (Cost Per Click) and CPM (Cost Per Thousand Impressions) bidding options. If your goal is lead generation, CPC might be more effective, while CPM works well for increasing brand awareness. Setting bid caps and testing each strategy can help you determine the best approach for your goals and budget.
3. Use A/B Testing for Optimization
A/B testing on LinkedIn helps pinpoint which ad elements—like visuals, headlines, and calls to action—resonate best with your audience. Small changes can improve engagement rates, lowering costs by focusing on ads that drive better results. Test and iterate regularly to refine ad performance.
4. Leverage High-Performing Content Types
LinkedIn users engage more with certain types of content, especially those offering practical value and insights. Sponsored posts that feature industry insights, case studies, and how-to guides are effective at capturing attention and building credibility. For example, showcasing a case study that highlights measurable results or sharing actionable industry tips positions your brand as a valuable resource rather than just another ad in the feed.
By refining your targeting, choosing strategic bidding options, and creating content that resonates with LinkedIn’s professional audience, you can drive higher-quality leads while optimizing your ad spend. These tactics help reduce LinkedIn advertising costs, leading to a better ROI and a more efficient ad strategy overall.
LinkedIn Advertising vs. Carvertise’s Approach to B2B Marketing
While LinkedIn is a powerful digital platform for reaching B2B audiences, Carvertise’s rideshare advertising combines offline visibility with online engagement to create a unique, impactful B2B marketing strategy. Carvertise uses branded cars to deliver mobile, in-person brand exposure and digital ad retargeting, which allows us to connect with target audiences not only during in-person encounters but also online.
Carvertise’s Geofencing and Attribution Capabilities
Carvertise takes visibility a step further with the use of geofencing technology. As our branded vehicles move through key areas, they capture the device IDs of phones in proximity, allowing us to serve digital ads to those devices across channels like LinkedIn, In-App, Social, and Search platforms.
This technology enables precise targeting based on affinities and demographics, ensuring that your message reaches the right people multiple times. Moreover, we use weblift attribution to measure how many of these people visited your website, providing clear, trackable ROI for your campaign.
The SWARM Campaign for High-Impact Exposure
One of our standout offerings, the SWARM campaign, takes brand visibility to a new level. Imagine a synchronized fleet of branded cars arriving at a high-profile B2B event or conference, strategically positioning themselves in a highly visible location.
This tactic captures the attention of event attendees, creates memorable brand exposure, and initiates digital retargeting for continued engagement. SWARM is especially effective for B2B campaigns, as it combines physical brand presence with digital ad retargeting on platforms like LinkedIn, reaching potential clients at both their professional events and in their online spaces.
Amplify Results by Combining Carvertise and LinkedIn
Using Carvertise and LinkedIn ads together can significantly boost your campaign results. The physical visibility of our car wraps introduces your brand in real-world settings, while LinkedIn ads offer additional touchpoints and reinforce brand recall online.
By combining Carvertise’s geofencing-driven ad retargeting with LinkedIn’s precision targeting, your brand can reach decision-makers both during and after key in-person interactions, optimizing your B2B marketing for maximum impact.
Final Thoughts: Is LinkedIn Advertising Worth It for B2B?
LinkedIn advertising offers unparalleled access to professionals and decision-makers, making it a strong choice for B2B marketers—despite its higher costs. However, it’s essential to weigh LinkedIn’s value against alternative strategies like Carvertise’s rideshare advertising. With Carvertise, brands benefit from both physical visibility and targeted digital retargeting, ensuring consistent engagement across offline and online spaces. By blending LinkedIn’s professional reach with Carvertise’s mobile and digital approach, businesses can create a well-rounded strategy that maximizes ROI. Ultimately, evaluating each option based on your audience and campaign goals will help you invest where it counts.
FAQs
How much does LinkedIn advertising cost per click in 2024?
LinkedIn’s CPC averages between $2.00 – $3.00, though costs can vary based on targeting and competition in your industry.
Is LinkedIn advertising effective for small businesses?
Yes, LinkedIn can be effective for small businesses aiming to reach niche B2B audiences, though careful targeting and budgeting are essential due to higher costs.
What targeting options are available with LinkedIn ads?
LinkedIn offers detailed targeting options, including job title, industry, company size, skills, and location, allowing for precise audience segmentation.
How can I reduce my LinkedIn advertising costs?
To lower costs, refine targeting, use A/B testing, and select the most effective bidding strategy based on your campaign goals.
What is the average conversion rate for LinkedIn ads in 2024?
Conversion rates vary widely, but LinkedIn ads typically achieve a 6-7% conversion rate, depending on audience targeting and ad relevance.
