We hear this question from our paid media clients a lot: “Why are LinkedIn ads so expensive?”
Well, I am tempted to ask, “What does expensive mean to you?” It’s all relative, isn’t it? Fine dining at a 5-star restaurant might be expensive for one person and an affordable, good value for another. The same can be said about cars, homes, vacations, or online advertising.
The true measure of whether or not something is “expensive” or worth the price is how it fits into your budget and what you get in return for what you spend. And when it comes to promoting important content for your prospects, deciding what is a worthwhile investment is critical.
In the case of LinkedIn, the cost per click or conversion may be considerably higher compared to other platforms. But consider this: For B2B firms, the quality of leads on LinkedIn is unlike any other platform on the internet.
Let’s look at how LinkedIn compares to other platforms, and you can decide for yourself whether spending your advertising dollars there is expensive or worth it.
LinkedIn is a Premium Platform for Business Prospects
What sets LinkedIn apart from other online platforms is a function of two key features: First, the users are almost entirely business professionals and their companies who use the site to network, share insights, and develop new skills.
Second, LinkedIn’s advertising engine is highly customizable, letting you target your audience based on everything from industry, job title, company size, or geography.
That level of specificity comes at a price and leaves you with a decision to make. Is your marketing and sales content valuable enough to a precise audience that it’s worth spending a little more per click to get it in front of them?
Consider also whether your audience is in “business mode” or “social mode.” On Facebook, for example, the audience is more likely to be in social mode, whereas LinkedIn’s audience is more often pre-conditioned to be in a business mindset.
LinkedIn Users Are Primed for Engagement and Conversion
It should come as no surprise that LinkedIn users spend their time on the platform differently than they do on other social media such as Twitter, Facebook, TikTok, Snapchat, or Instagram.
And that’s an important distinction.
LinkedIn users are typically more focused on professional development, solving a problem, or answering a question related to their job, company, or industry. In other words, they have come to LinkedIn for a specific reason. They are actively seeking out information, connecting with others, celebrating accomplishments, and sharing interesting or insightful content.
Because of that more business-oriented mindset, they are more open to engaging with or acting on content that addresses their issue. If you are advertising B2B products or services on LinkedIn, users there are already in a posture of action. They are expecting to encounter content that’s meaningful for their professional growth or specific to their industry.
If you’re focused on a niche professional group as your desired audience, your chances of them seeing relevant content while they’re in the right frame of mind is immeasurably better on LinkedIn than on any other platform.
Make Your Message Matter With LinkedIn’s Metrics
On average, LinkedIn ads cost around $20 per click. That may sound like a lot depending on your budget, but the old adage “you get what you pay for” applies in this instance more than on other platforms.
Part of that reason is because LinkedIn is like a walled garden. Everything is kept within the platform, so the data available to you is very rich. You can focus your ad spending on a very select audience and refine it as your campaign goes on, adjusting it accordingly depending on who is engaging with your content, right down to the actual decision maker.
LinkedIn’s wealth of actionable data is a powerful differentiator when comparing it to other online advertising platforms. No other platform lets you drill down with the same professionally oriented criteria.
For example, you could set up a target this specifically:
- Geographic Location: Permanently Located or Recently in New York City
- Industry: Graphic Design
- Job Seniority: CXO, Owner, VP, Partner
- Company Size: 11-50 Employees
- Member Skills: Logo Design
Put simply, there is no other place quite like LinkedIn when it comes to targeted digital campaigns for B2Bs.
LinkedIn is Popular With Companies and Their Employees
As a company that was originally conceived to connect people to one another for “networking” purposes, LinkedIn has evolved to become the primary social platform for business.
LinkedIn boasts 875 million registered users, and over 57 million registered organizations which includes businesses, professional groups, and non profit organizations. It’s also available in 200 countries and territories, including China where many social networks are banned.
Not only is LinkedIn’s audience large and continuing to grow, the level of engagement is constantly increasing, which makes it even more valuable if you are able to get in front of the right audience.
Is LinkedIn’s Audience the Best Audience for Your Content?
There is no “one size fits all” in paid media advertising. Cost per click is not the most reliable metric for determining value.
Your ideal marketing mix depends on several things: your marketing objective, ideal audience, average length of a sales cycle, budget, ROI, etc.
It’s true that LinkedIn ads are typically more expensive per click than other advertising platforms, but that doesn’t mean you should balk at spending money there. LinkedIn has multiple ad formats and targeting methods that allow you to find the right individual for your content.
LinkedIn users are highly engaged in professional and personal development, making it a useful platform for you to market thought leadership and build brand equity. And since there’s nothing that compares, you might decide you can’t afford not to invest at least a portion of your ad budget on LinkedIn.