LinkedIn Paid Advertising: All You Need to Know

Paid advertising on social media is a powerful way to reach your ideal customers where they spend their time. But what if your customers are professionals, executives, and decision-makers? You’ll find them on LinkedIn.

If you’ve been wondering how to tap into this professional network to advertise your business, you’re in the right place.

This guide will walk you through everything you need to know about LinkedIn paid advertising.

What is LinkedIn Paid Advertising?

LinkedIn paid advertising is a self-service platform that allows you to show ads to a highly targeted professional audience. Instead of just hoping your organic posts reach the right people, you can pay to place your content directly in front of users based on their job title, industry, company size, and other professional criteria.

Think of it this way: you’re not just casting a wide net and hoping for the best. You’re using a finely-tuned fishing rod to catch exactly the type of fish you want.

For example, a software company could target IT managers at companies with over 500 employees in the financial services sector. That’s the kind of precision LinkedIn offers.

There are several LinkedIn ad formats to choose from, each serving a different purpose:

Sponsored Content: These are native ads that appear directly in the LinkedIn feed alongside organic posts. They can be single images, videos, or carousels.
Sponsored Messaging: This format allows you to send direct messages to your target audience’s LinkedIn inbox, creating a more personal and direct line of communication.
Dynamic Ads: These ads are personalised to each user, often using their profile photo and name to grab their attention. They’re great for promoting job openings or company pages.
Text Ads: These are simple, text-based ads that appear on the side or top of the desktop LinkedIn site. They’re a cost-effective option for driving traffic.

Benefits of LinkedIn Ads for Your Business

So, why should you bother spending your hard-earned cash on LinkedIn?

The benefits are pretty compelling, especially for B2B companies.

Unmatched Targeting: No other platform lets you target users with such professional precision. You can zero in on decision-makers by industry, job function, seniority, and more. This means less wasted ad spend and more relevant leads.
High-Quality Leads: The audience on LinkedIn is there for professional reasons. They’re in a business mindset, making them more receptive to B2B offers. This often translates to higher-quality leads who are more likely to convert.
Build Brand Credibility: Advertising on a professional platform like LinkedIn positions your brand as a serious player in your industry. It helps build trust and authority among a valuable audience.
Variety of Ad Formats: With multiple ad types, you can choose the best format to achieve your specific goals, whether it’s generating leads, driving website traffic, or increasing brand awareness.

Is Paid Advertising on LinkedIn Perfect for All Businesses?

Let’s be honest, while LinkedIn is a powerhouse, it’s not the perfect fit for every single business.

If your company is primarily B2C and sells low-cost consumer products, like novelty socks or phone cases, you’ll likely find better results on platforms like Facebook or TikTok. The audience mindset and higher advertising costs on LinkedIn might not align with your goals.

LinkedIn truly shines for:

– B2B Companies: Businesses that sell products or services to other businesses.
– High-Value B2C: Companies selling high-ticket items or services that involve a considered purchase, like university courses or financial services.
– Recruitment: Organisations looking to hire top talent.

If your target customer is a professional and the lifetime value of a customer justifies the cost, LinkedIn could be your secret weapon.

How to Get Started With LinkedIn Paid Advertising

Here’s a step-by-step guide to get your first LinkedIn ad campaign up and running.

1. Create a Campaign Manager Account: First things first, you need access to LinkedIn’s advertising platform, the Campaign Manager. If you have a LinkedIn account, you can create one easily.
2. Choose Your Objective: What do you want to achieve? LinkedIn offers objectives like brand awareness, website visits, lead generation, and job applicants. Selecting the right objective helps LinkedIn optimise your campaign for success.
3. Define Your Target Audience: This is where the magic happens. Get specific. Use LinkedIn’s powerful targeting options to build an audience based on location, industry, job title, seniority, skills, and company size.
4. Select an Ad Format: Based on your objective, choose the ad format that best suits your message. For lead generation, a Sponsored Content ad with a lead gen form can be very effective.
5. Set Your Budget and Schedule: Decide how much you want to spend, either daily or for the entire campaign. You can also set a start and end date for your ads.
6. Create Your Ad: Now for the fun part. Design your ad creative and write your copy. Make it compelling, clear, and relevant to your target audience. Include a strong call to action (CTA).
7. Launch and Monitor: Once your ad is live, don’t just set it and forget it. Monitor its performance in the Campaign Manager. Track key metrics like click-through rate (CTR), cost per lead (CPL), and conversion rate. Use these insights to test different ad versions and optimise your campaign for better results.

The Cost of Running Ads on LinkedIn

Let’s talk money.

LinkedIn has a reputation for being one of the more expensive advertising platforms, and it’s not entirely undeserved. The cost-per-click (CPC) and cost-per-impression (CPM) are generally higher than on other social networks.

However, you’re paying a premium for access to a high-value, professional audience. While there’s no fixed cost, you can expect to pay anywhere from R80 to R150 per click for many industries in South Africa. For highly competitive sectors, this can be even higher.

LinkedIn requires a minimum daily budget of R150 per campaign. It’s important to view the cost in the context of your potential return on investment (ROI). A single high-quality lead from LinkedIn could be worth thousands (or even millions) of Rands to your business, justifying the higher upfront cost.

Let Us Help You!

Setting up and running a successful LinkedIn advertising strategy takes time, expertise, and a bit of trial and error.

At Starbright, we offer comprehensive social media marketing services right here in South Africa. We live and breathe this stuff, managing both organic and paid advertising on LinkedIn to help businesses like yours connect with the right people and achieve real results.

If you’re ready to unlock the power of LinkedIn without the headache, let’s chat.