What Does It Cost?

LinkedIn Ads have two main bidding options for advertisers:

  1. Pay-Per-Click (PPC or CPC) – You are charged when someone clicks your ad.
  2. Cost per 1,000 Impression (CPM) – You are charged every time your ad is shown 1,000 times.

LinkedIn Ads Bidding Options

Why Choose CPC?

CPC bidding is the preferred method for most advertisers because it is performance based. Nobody clicked your ad? Doesn’t cost you a penny. Someone clicks the ad and goes to your site? Cha-ching, you pay LinkedIn. When you know the exact cost for each click you can work through your conversion funnel to ensure your advertising is profitable. Let’s walk through a quick example:

Average cost/click = $2.50
Average value of new customer = $1500
Conversion rate of leads to customers = 10%
Target cost/lead (CPL) = $150

With simple math you can see that you need 1 lead for every 60 clicks. That’s a conversion rate of 1.67%. In this example, if your traffic/landing page can generate a conversion rate better than 1.67% you are generating profitable new business and should expand your efforts.

When to Use CPM Bidding

This bidding type dates back to the early days of the internet when it was all about “hits”. You will be charged every time your ad is shown 1,000 times regardless if anyone clicked the ad or not. I recommend this approach in only two situations:

  • You have prior experience with CPM advertising
  • Brand-building where impressions are valuable by themselves

Other Important Notes

  • Your card will immediately be charged a one-time activation fee of $5 when you register. This is applied to clicks as your ad begins to run and your card will be charged afterward for accrued clicks.
  • The minimum CPC bid is $2.00.
  • Minimum daily budget for a campaign is $10

7 Responses to “What Does It Cost?”

  1. lisa March 25, 2014 at 5:41 pm #

    question on the pay per click cost… if the minimum is $2.01 per click – that is $2.01 per 1,000 clicks or per click?

    • Robert March 25, 2014 at 5:45 pm #

      Lisa – The $2.00 minimum is for the CPC model where you pay only when someone clicks on the ad. There is also CPM, where you set a bid on what you pay for every 1,000 impressions of your ad. Hope that clarifies.

  2. Jim March 31, 2014 at 3:39 pm #

    How much does it cost to run an advertisement by the CPM bidding? For every 1,000 showings of the advertisement what would be the specific cost..

    • Robert March 31, 2014 at 3:43 pm #

      The minimum CPM bid is also $2.00

  3. Tamara March 10, 2015 at 9:49 am #

    Question on the characters for the headline. I have read that it can only be 25 Characters for the headline. Is there any possibility to increase the numbers of the headline characters?

    • Robert March 10, 2015 at 11:23 am #

      When using a right-side placement, 25 characters is the limit. For sponsored content in the main feed though you get more characters for your ad (and those have much higher CTR).

  4. Maria May 12, 2015 at 5:28 pm #

    Do we know which person from linkedin clicked our ad ? Name , Profile Link or any other info of the Click ?

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