LinkedIn allows you to quickly grow your brand through ads. However, the platform charges a hefty fee for ads, making it crucial to know how your ad performs. So, are your ads performing well? And how do they compare to industry standards? Read this article to learn more about the common LinkedIn ad benchmarks in 2024.
Unlike other social media platforms, LinkedIn creates a safe and accessible space for professional interaction. LinkedIn is a popular B2B marketing platform with over 800 million users worldwide. Hence it is crucial to understand how to stay relevant on Linkedln ads. To ensure effective advertising, monitor benchmarks and KPIs to enhance campaigns. Here is a look at LinkedIn Ad benchmarks in 2024.
Types of LinkedIn Ads
LinkedIn provides a variety of advertising to assist businesses in reaching their target demographic and achieving their marketing objectives. The following are a few of the various LinkedIn ad types:
1. Sponsored Content
Sponsored Content, a LinkedIn Ad, connects professionals and establishes long-lasting connections. Native sponsored content ads, including photos, videos, documents, or carousels, can achieve goals like brand exposure, website traffic, user engagement, video views, lead generation, conversions, and job applications. The Campaign Manager platform manages budget and targets and schedules Sponsored Content advertising with over 20 parameters. Tools like Lead Gen Forms, Audience Expansion, and LinkedIn Audience Network enhance campaign effectiveness.
2. Lead Gen Forms
Lead Gen Forms allow advertisers to gather quality leads from LinkedIn's professional audience using pre-filled forms. Super administrators can create these forms for sponsored content campaigns and message advertising. Members' contact and profile information is loaded into the state when they click the call-to-action button on a LinkedIn ad. Advertisers can monitor lead cost, fill rate, and professional audience groups for campaigns using Campaign Manager or CRM platforms for efficient lead management.
3. Text and Dynamic Ads
LinkedIn desktop displays two types of ads: text and dynamic. Text ads are simple, affordable PPC ads that attract new clients. They can be made, target audiences selected, budgets specified, and outcomes measured. Dynamic ads are tailored based on profile information, enhancing audience arousal, brand exposure, traffic generation, and lead conversion. Available in followers, spotlight, content, and job ads.
4. Sponsored Messaging
Use LinkedIn Ads to direct messages to your target demographic's inbox, promoting business interactions. There are two types: conversation and message ads, each with varying levels of interaction and CTAs. Message advertising creates more vital interaction than email marketing, and direct lead generation is possible with a Lead Gen Form.
Conversation advertisements enable meaningful interactions with audiences by offering customizable paths, CTAs, and dynamic LinkedIn messages, allowing prospects to access desired content and show at their convenience.
LinkedIn Ad Benchmarks in 2024
Improve campaigns and compare results with competitors by understanding LinkedIn Ad Benchmarks in 2024, including crucial benchmarks and measures such as:
a) Click-through rate (CTR)
The click-through rate (CTR) is a statistic that measures the number of people clicking on an advertisement. In 2023, sponsored content on LinkedIn had a global CTR ranging from 0.44% to 0.65%. It varies by geography, industry, seniority, and role and is influenced by the format of the content. LinkedIn ad types have varying CTR criteria, with dynamic ads having a 0.06% CTR, text ads having a 0.02% CTR, and message ads having a 3% CTR.
b) Cost per click (CPC)
CPC measures the advertiser's payment for each click on LinkedIn ads, with an average of $5.58 in 2024, influenced by factors like:
- Ad relevance: LinkedIn assigns ad campaign quality scores based on performance and audience relevance, affecting CPC and auction chances.
- Target audience: LinkedIn ads use an auction system with higher CPC for more competitive and popular audiences.
- Bidding strategy: LinkedIn offers automatic and maximum-cost bidding for advertisement options, affecting CPC and ad delivery by selecting the best price for each auction.
- Objective: LinkedIn offers various campaign objectives, including lead generation, brand exposure, and website visits. Chargeable click behaviors may vary, with paid clicks for landing pages and free clicks for increasing website visits.
c) Cost per impression (CPI)
CPI is the average price paid for 1000 LinkedIn ads, with an average of $33.80 in 2024. It's an effective alternative for brand recognition and message spreading but doesn't guarantee clicks, leads, or conversions. Optimize CPI or CPM ads by monitoring CTR, engagement, and conversion rates, considering factors like industry, offer, and landing page quality.
d) Cost per lead (CPL)
Cost per lead (CPL) generates a LinkedIn ad campaign tip. It is determined by dividing advertising expense by the number of leads produced. The typical CPL in 2024 ranges from $50 to $100; depending on location, industry, ad style, targeting standards, and offer quality. Utilize lead generation forms on LinkedIn to increase CPL and improve conversion rates, with an average completion rate of 13%.
e) Engagement rate
Engagement rate measures LinkedIn user engagement by dividing interactions by impressions, indicating relevance and attention to the target audience. TheB2BHouse's survey shows an average global engagement rate of 0.51%-0.75% for sponsored content on LinkedIn, varying by locale and sector, with 0.83% in Africa, 0.48% in Europe, 0.94% in education, and 0.42% in finance.
f) Lead gen form completion rate
The lead-gen form completion rate measures the number of LinkedIn users who submitted a form, calculated by dividing completed forms by active forms. A higher completion rate indicates better lead generation. By 2023, 10% of LinkedIn's records will be completed, which may vary depending on the sector, target market, ad type, and product.
g) Conversion rate
Conversion rate is crucial for evaluating advertising success and lead quality, particularly on LinkedIn for B2B marketers targeting motivated consumers. In 2023, LinkedIn advertising is expected to convert between 5% and 15%, depending on the sector, area, ad type, and campaign goal. Professional services and finance may have better conversion rates, underdeveloped countries may have better rates, and other ad forms, like messaging or conversation ads, may have higher conversion rates.
h) Cost per conversion
Cost per conversion is a LinkedIn marketing statistic calculating the expense of acquiring leads or clients by dividing the advertising budget by conversions, including activities like form submissions, white paper downloads, webinars, and purchases. In 2023, LinkedIn advertisements' cost per conversion is around $100, varying based on target market, bidding technique, ad type, and relevancy. Costs may be higher or lower in specific sectors and localities.
i) LinkedIn message ads / InMail benchmarks
Benchmarks for LinkedIn Message Ads and InMail assess the success of advertising campaigns on the messaging platform. These benchmarks may change over time due to evolving platform usage and advertising trends. Advertisers can deliver tailored messages to members' inboxes, disguised as sponsored communications, to initiate discussions, advertise goods or services, or increase interaction.
Conclusion
Marketers must understand LinkedIn advertising standards to assess their campaigns' efficiency and effectiveness. Customizing campaigns for the intended audience and goal is crucial, as LinkedIn ad standards may vary by area, industry, function, and seniority. By being aware of these criteria, marketers can contact and engage prospects and customers, resulting in more leads and conversions in 2024.
