Facebook, Instagram, Twitter, and YouTube are the most popular digital advertising sites today. However, because of the saturation, small businesses can have a challenging time competing with large corporations on these platforms due to limited budget and resources.

Fortunately, there are alternative websites that you can focus on to reach potential customers. LinkedIn is a viable advertising platform for business-to-business (B2B) companies. You can also use the professional networking site to target young adults.

Here are the things you should know about the cost to advertise on LinkedIn:

1. There’s an Affordable Minimum Rate

The minimum cost to advertise on LinkedIn is 10 USD. You have the option to set this figure as the daily budget or for the entire campaign. However, the highest allowable amount is 20,000 USD.

Even if you set ten dollars as your daily budget, you’ll only end up spending approximately 300 USD per month. This sum is still more affordable compared to other forms of marketing.

2. Three Factors Affect Advertising Costs

Regardless if you’re spending only the minimum rate or a substantial amount each month, you want to get the most return on investment (ROI). You must identify the different aspects that affect the cost of posting an ad on the professional social network.

These are the factors that influence the price of your LinkedIn placement:

• Target Audience – Expect to pay more if you want your ads to be seen by users who are in demand, such as those who are in high-earning positions or people working in top companies. To lower the cost of your campaign, you should improve audience targeting.
• Bid Amount – LinkedIn conducts an auction for ad placements among brands in the same niche. The amount affects the price of advertising because, if you win the bid, you have to pay one cent more than the other company. While this may seem insignificant at a glance, the cost can easily add up if you don’t monitor your campaign regularly.
• Ad Relevance – LinkedIn evaluates your ad to make sure that it’s relevant to users. This means that the ad should address the needs of prospects or, at the very least, fall in their list of interests. The platform encourages appropriate targeting, which is why the ad relevance score can help in lowering advertising costs.

3. Choose From Three Ad Pricing Options

To leverage LinkedIn for your business, you also have to identify the ad pricing option that fits your needs and preferences. For some companies, paying for each click on their ad works well. Other options include paying the platform for every 1,000 impressions or cost-per-send.

Here’s an in-depth look at each of the ad pricing choices:

• Cost-Per-Click – With this option, you only pay LinkedIn for every user that clicks on your ad. CPC is ideal for businesses that want to drive visitors to their websites or generate leads.
• Cost-Per-1,000 Impressions – Unlike CPC, CPM doesn’t require any other interaction other than the user scrolling past your sponsored post. LinkedIn charges you for every 1,000 people who see your ad. This method is best if you want to boost awareness for your brand.
• Cost-Per-Send – LinkedIn allows you to send ads through their InMail. With this model, you have to pay the platform for each message that’s successfully delivered to your target audience. CPS is valuable for capturing highly-qualified leads or sending out event registrations.

4. Control Ad Spend in Three Ways

The third time’s the charm for LinkedIn because there’s another set of three things that you should know about. You have three options for managing your advertising budget. You can either determine a total or daily budget or set a bid.

Let’s study these three ways comprehensively:

• Total Budget – If you’re running an ad on an urgent schedule, you’ll be better off setting a total budget. This option allows you to maximize the reach of your post without exceeding the price threshold that you’re comfortable with.
• Daily Budget – Setting a daily budget is valuable for long-term campaigns. You still get full control of your LinkedIn advertising cost while meeting the needs of your company.
• Bids – You can also set a maximum amount for clicks, impressions, and InMails. Plus, the platform automatically ensures that you won’t be going over your budget. You can start with the minimum bid for each click, which is two dollars.

5. Ad Formats Also Influence Advertising Costa

Similar to YouTube, LinkedIn also offers various ad formats to cater to the needs of their clients. You have to learn the different types and test them out to find the ones that work well for your company.

The platform offers five formats:

• Sponsored Content – If you’ve ever stumbled across sponsored posts on other social media sites like Facebook and Instagram, LinkedIn sponsored content has the same function. It shows up on the news feeds of your target audience. For this ad, you can post text, images, and even videos.
• InMail Ads – With this option, you can send your ad directly to your target audience’s inboxes. You also have the choice to have your ad displayed on the right side of the Direct Message page.
• Text Banners – This is a budget-friendly ad that’s mainly composed of texts and links. It is not accompanied by any other media. This type of ad typically appears in desktop news feeds at the top of the screen.
• Display Ads – LinkedIn display ads guarantee that your ad will be viewed by high-quality prospects and leads You can target your audience with precision through this format.
• Dynamic Ads – This one is a personalized ad that merges user information with your ads. There are three ways that this ad is displayed: Follower, Spotlight, and Content.

Conclusion

LinkedIn is a viable advertising platform for B2B companies or businesses that target young adults. You can start your campaign with just ten dollars. You get to control all aspects of your budget as long as you know the factors that affect advertising costs. Plus, you can choose from different pricing options and manage your spending in three ways.