How much does LinkedIn Advertising Cost? (2025 Update)

02/10/2025 Katrina Leung Optimize your media budgets

Imagine your marketing message landing directly in the inbox of a top decision-maker at a company you've been eyeing. With LinkedIn advertising, you can do just that and more! As an SME looking to break through to a professional audience, understanding the workings of LinkedIn ads can transform your marketing efforts. Here’s everything you need to know about LinkedIn advertising costs to maximize your reach and impact according to your budget.

LinkedIn Ad Types

Sponsored Content
Sponsored Content ads appear directly in the LinkedIn feed. They can include images, videos, and carousels, making them versatile for various marketing goals, from brand awareness to lead generation.

Text Ads
LinkedIn text ads are simple display ads that appear on the sidebar. They are less intrusive and typically used for driving traffic to a landing page.

Sponsored InMail
LinkedIn message ads or InMail ads appear in the user's LinkedIn inbox, mimicking regular messages. These are highly personalized and effective for direct engagement.

Dynamic Ads
LinkedIn dynamic ads automatically personalize the ad content based on the viewer’s profile, increasing relevance and engagement.

Lead Gen Forms
LinkedIn lead gen ads use forms pre-filled with LinkedIn profile data to streamline the lead generation process, making it easier for users to submit their information.

How Much Does LinkedIn Advertising Cost?

Cost Per Click (CPC)

On average, CPC LinkedIn ads range from US$5.58 to $9.64, depending on factors like industry and target audience. For example, ads targeting senior professionals generally cost more due to high competition.

Cost Per Thousand Impressions (CPM)

The average CPM on LinkedIn is about US$33.80. This metric is important for campaigns focused on brand awareness, where impressions rather than clicks are prioritized.

Cost Per Send (CPS) - Sponsored InMail

For InMail ads on LinkedIn, which are messages sent directly to users’ inboxes, the cost is around US$0.75 to $1.00 per message. This format is particularly effective for personalized marketing campaigns.

Cost Per Lead (CPL)

For campaigns focused on generating leads, the LinkedIn Ads cost per lead typically ranges between US$8 and $90+. This cost can vary significantly based on the targeting options and the quality of the ad content. Effective targeting and high-quality lead gen forms can help lower this cost by increasing the relevance and engagement of your ads.

Setting Your LinkedIn Ads Budget

LinkedIn recommends starting with a daily budget of US$25 for new advertisers. For more established campaigns, a daily budget of US$50 to US$100 is advisable. This budget helps you achieve a balance between reaching enough people and controlling your LinkedIn advertising costs.

Online Advertising Guide

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LinkedIn Ads Strategy for SMEs

Define Clear Objectives
Before launching your campaign, define what you want to achieve—brand awareness, lead generation, or website visits. Each objective will influence your LinkedIn ads pricing and the success of your campaign.
Target the Right Audience
Use LinkedIn’s detailed targeting options to reach your ideal audience. You can target by job title, industry, company size, and more. Utilizing LinkedIn ads audience tools like matched audiences can enhance your targeting precision.
Optimize Your Ad Creative
Create engaging and relevant ads to boost your ad relevance score, which can lower costs. High-quality visuals and compelling copy tailored to your audience’s interests are crucial.
Use A/B Testing
Continuously test different versions of your ads to see which perform best. Adjust elements like headlines, images, and calls-to-action to optimize performance.
Leverage Advanced Bidding Strategies
Choose the right bidding strategy for your goals. Manual bidding gives you control over your bids, while automatic options like max delivery can help optimize for maximum results within your budget (SaaS PPC Agency | Getuplead).
Monitor and Adjust Campaigns
Regularly review your campaign performance. Use LinkedIn’s analytics to track key metrics and adjust your strategy to improve results and manage costs effectively (WebFX) (Databox).

Key Takeaway on LinkedIn Ad Pricing 2024

Conclusion

Do LinkedIn ads work? Absolutely, if used correctly. By understanding LinkedIn’s ad formats, setting a realistic budget, and employing strategic targeting and optimization, SMEs can effectively reach and engage their desired audience. Start small, measure your results, and refine your approach to maximize your advertising ROI on LinkedIn.