HOW MUCH DOES IT COST TO ADVERTSIE ON LINKEDIN?

At Lillian Purge, we specialise in Local SEO Services and have produced a transparent breakdown on how Much Does it Costs to Advertise on Linkedin? so you can plan budgets efficiently and get the best ROI from your campaigns.

LinkedIn is one of the most powerful advertising platforms for reaching professionals, business decision-makers, and B2B audiences. Its advanced targeting capabilities allow advertisers to connect with people based on industry, job title, company size, and skills. However, LinkedIn Ads tend to be more expensive than other social platforms like Facebook or Instagram. Understanding the costs, pricing structure, and factors influencing LinkedIn advertising helps you plan your campaigns effectively and maximise return on investment.

How LinkedIn Advertising Works

LinkedIn Ads operate on a bidding system, similar to Google Ads or Meta Ads. You set your campaign budget and bid against other advertisers targeting the same audience. The higher your bid and relevance score, the more likely your ad will be shown.

There are several campaign types available on LinkedIn:

  • Sponsored Content (appears in users’ feeds as posts)

  • Sponsored Messaging (direct messages sent to users’ inboxes)

  • Text Ads (displayed in the sidebar)

  • Dynamic Ads (personalised ads tailored to each viewer)

  • Video and Carousel Ads (used for engagement and storytelling)

Each ad format has its own pricing structure and performance metrics, but all follow the same pay-per-click (PPC) or cost-per-impression (CPM) model.

The Average Cost of LinkedIn Advertising

The cost of LinkedIn Ads varies depending on your targeting options, competition, and ad quality. On average, advertisers can expect to pay:

  • Cost per Click (CPC): £4 to £8 per click

  • Cost per 1,000 Impressions (CPM): £25 to £60

  • Cost per Send (Message Ads): £0.30 to £0.80 per message sent

These figures can fluctuate depending on your industry and audience. For example, campaigns targeting senior executives or niche B2B sectors tend to cost more because of higher competition for limited audiences.

Minimum Budget Requirements

LinkedIn sets minimum spend requirements for its campaigns:

  • A minimum daily budget of around £8 to £10.

  • A minimum total budget of around £80 to £100 for short-term campaigns.

This ensures your campaign gathers enough data for meaningful results. You can adjust your budget and bids at any time depending on performance.

Factors That Affect LinkedIn Advertising Costs

1. Audience Targeting

LinkedIn allows you to target users by job title, company size, seniority, and skills. The more specific your targeting, the smaller your audience becomes, often increasing costs due to higher competition for limited impressions. Broader targeting can reduce CPC but may attract less relevant leads.

2. Bidding Strategy

You can choose between automated bidding and manual bidding. Automated bidding lets LinkedIn optimise your bids for maximum results, while manual bidding gives you control over your maximum cost per click or impression. Higher bids generally win more impressions but can quickly increase costs.

3. Ad Relevance and Quality Score

LinkedIn rewards high-quality ads that generate engagement. If your ad resonates with the target audience, you’ll achieve a better relevance score, which lowers your overall costs. Poorly performing ads with low engagement will cost more per click or impression.

4. Industry and Competition

Sectors like finance, technology, and recruitment often have higher LinkedIn ad costs due to strong demand for professional audiences. Niche markets with fewer advertisers may have lower competition and therefore cheaper ad placements.

5. Campaign Objective

Your chosen campaign objective affects pricing. Awareness campaigns using impressions (CPM) usually cost less per engagement than conversion or lead generation campaigns (CPC or CPA). However, conversion-based ads often deliver higher ROI by reaching users ready to take action.

6. Geographic Location

Targeting users in high-demand regions such as London or New York typically costs more than targeting smaller markets due to audience density and advertiser competition.

Example of LinkedIn Advertising Budget

Let’s assume you run a B2B campaign targeting UK-based marketing directors:

  • Budget: £500 for two weeks

  • CPC: £5

  • Expected Clicks: 100

  • Conversion Rate: 10% (10 leads generated)

  • Cost per Lead: £50

In this example, LinkedIn Ads deliver highly qualified leads at a relatively high cost per lead, but because they target decision-makers, the potential return on investment can be substantial.

Comparing LinkedIn Costs to Other Platforms

While LinkedIn’s costs per click are higher than Facebook or Instagram (which average around £0.50 to £2 per click), its audience quality is typically superior. Users on LinkedIn are professionals actively seeking business insights, opportunities, and networking.

For B2B marketers, this means fewer but more valuable leads. In contrast, platforms like Facebook may drive higher traffic but often with lower purchase intent or business relevance.

How to Reduce LinkedIn Advertising Costs

Even though LinkedIn Ads can be expensive, there are ways to improve cost efficiency:

  • Refine targeting: Start broad, then narrow down based on engagement data.

  • Test ad creatives: Run A/B tests on headlines, visuals, and calls to action.

  • Optimise landing pages: Ensure users who click your ad convert efficiently.

  • Use retargeting: Reach people who’ve already visited your site for lower-cost conversions.

  • Schedule ads strategically: Run ads during working hours when professionals are most active.

Consistent monitoring and optimisation help reduce wasted spend and improve ROI over time.

Measuring ROI from LinkedIn Ads

To evaluate campaign performance, track metrics such as:

  • Click-through rate (CTR)

  • Conversion rate

  • Cost per lead (CPL)

  • Return on ad spend (ROAS)

You can use LinkedIn’s Campaign Manager and Google Analytics to measure these results accurately. For local businesses, adding conversion tracking to contact forms or calls provides clear insight into how ads drive real-world enquiries.

Is LinkedIn Advertising Worth the Cost?

For businesses targeting professionals, LinkedIn Ads can deliver excellent results despite higher costs. It’s particularly effective for B2B lead generation, recruitment, professional services, and brand authority campaigns.

However, for companies with limited budgets or consumer-focused products, platforms like Meta or Google Ads may offer a better cost-to-reach ratio. The key is to align your advertising platform with your audience and goals.

Final Thoughts

The cost of advertising on LinkedIn depends on your goals, audience, and bidding strategy, but the platform’s targeting precision often justifies the higher price. With a typical cost per click between £4 and £8, LinkedIn is best suited for businesses focused on quality leads rather than mass traffic.

By carefully refining your targeting, monitoring results, and testing ad creatives, you can achieve a strong return on investment and build meaningful professional connections. LinkedIn remains one of the most effective platforms for brands looking to reach serious decision-makers and elevate their B2B marketing strategy.

We have also written in depth articles on How to Advertise on Linkedin and Common mistakes businesses make with LinkedIn Ads as well as our Linkedin Advertising Guidance Hub to give you further guidance.