Measure ROI from LinkedIn Ads Campaigns

At Lillian Purge, we specialise in Local SEO Services and have written How to measure ROI from LinkedIn Ads campaigns helping you track conversions and prove the value of your advertising investment.

LinkedIn Ads are one of the most effective tools for reaching decision-makers, professionals, and B2B audiences. However, to truly understand whether your campaigns are working, you need to measure return on investment (ROI). Tracking ROI helps you determine how much revenue your ads generate compared to what you spend, allowing you to refine your strategy and focus on what delivers the best results. This article explains how to measure ROI from LinkedIn Ads campaigns, what metrics to monitor, and how to connect your advertising efforts to real business outcomes.

What ROI means in LinkedIn advertising

ROI, or return on investment, measures how effectively your ad spend translates into revenue or valuable actions. The basic formula is:

ROI = (Revenue Generated – Campaign Cost) ÷ Campaign Cost × 100

If you spent £1,000 on LinkedIn Ads and gained £3,000 in revenue directly from those ads, your ROI would be 200%. Understanding this figure helps you see whether your campaigns are profitable and identify areas for improvement.

For some businesses, especially those running lead generation or awareness campaigns, ROI might also include non-monetary goals such as brand visibility, engagement, or website traffic that later contributes to conversions.

Step 1: Define your campaign objectives

Before measuring ROI, it’s essential to define what success looks like. LinkedIn Ads can achieve various goals, such as generating leads, driving website visits, increasing brand awareness, or promoting events. Each objective requires a different approach to measuring ROI.

For example, a campaign focused on lead generation would measure ROI based on the cost per lead and the number of leads converted into paying customers. A brand awareness campaign might measure ROI through engagement rates and growth in followers or website visits. Clear objectives ensure you measure the right metrics from the start.

Step 2: Set up LinkedIn conversion tracking

To accurately track results, you need to implement LinkedIn’s conversion tracking. This is done through the LinkedIn Insight Tag, a small piece of code added to your website.

The Insight Tag allows LinkedIn to record when users click your ad and take an action on your site, such as filling out a contact form, downloading a whitepaper, or completing a purchase. Once installed, you can view conversion data in LinkedIn Campaign Manager, making it easier to connect actions back to specific ads or audiences.

Step 3: Track key performance metrics

Monitoring the right metrics helps you determine how efficiently your campaigns are performing. Important LinkedIn Ads metrics include:

• Click-through rate (CTR): Measures how many people clicked your ad compared to how many saw it. A high CTR indicates strong relevance and engagement.

• Cost per click (CPC): The amount you pay for each click on your ad. Lower CPCs mean your ads are performing efficiently.

• Conversion rate: The percentage of users who took a desired action after clicking your ad.

• Cost per conversion: The total spend divided by the number of conversions. This metric directly impacts ROI.

• Lead quality: Evaluate not just how many leads you receive but how many are genuinely interested and qualified.

Step 4: Connect LinkedIn data to your CRM

To measure ROI accurately, you must link LinkedIn Ads data with your customer relationship management (CRM) system. This connection allows you to track leads from initial click through to final sale.

By integrating LinkedIn with CRMs like HubSpot, Salesforce, or Zoho, you can see which campaigns and audiences generate customers, not just clicks. This full-funnel visibility is critical for understanding true ROI.

Step 5: Assign value to leads and conversions

Not every conversion has the same value. To calculate ROI properly, you need to assign a financial value to each type of conversion.

For instance:

• A consultation booking might be worth £100.

• A completed lead form might be worth £50.

• A closed sale might generate £1,000 in revenue.

Multiplying the number of conversions by their average value gives you an estimated total revenue figure to use in your ROI calculation.

Step 6: Calculate your ROI

Once you have your total revenue and campaign cost, use the formula mentioned earlier. For example:

If your campaign cost £2,000 and generated £6,000 in sales, your ROI would be 200%.

This calculation helps you understand whether your campaigns are generating sufficient return and which ones deliver the best results for your budget.

Step 7: Consider long-term ROI

In B2B marketing, leads generated through LinkedIn often take time to convert. Many decision-makers research multiple times before contacting your business. This means you should also measure long-term ROI, taking into account leads that convert weeks or months later.

Use attribution models to understand how LinkedIn Ads fit into the customer journey. For example, a user might first see your ad on LinkedIn, then visit your website organically later before converting. Attribution tracking ensures these interactions are properly credited.

Step 8: Evaluate different campaign types

Different LinkedIn ad formats offer different ROI potential. Sponsored content and lead gen forms tend to perform well for lead generation, while dynamic ads and message ads work better for engagement and awareness.

Analyse ROI for each campaign type individually to see which produces the best balance between cost and conversion value. Focus your budget on the highest-performing ad types and audiences.

Step 9: Factor in non-financial returns

While revenue is the most important indicator, LinkedIn Ads can also deliver indirect ROI through brand awareness, audience growth, and customer loyalty. For example, increased website traffic or engagement on thought leadership posts can strengthen your reputation and generate future sales opportunities.

Tracking these metrics alongside financial ROI gives a more complete view of campaign performance.

Step 10: Optimise and refine continuously

ROI measurement is not a one-time process. Continuously monitor and adjust your campaigns to improve performance. Test different ad creatives, audience segments, and bidding strategies to reduce costs and increase conversions.

Regularly review your analytics to see which keywords, headlines, and offers resonate most with your audience. Over time, these refinements will lead to more efficient campaigns and stronger ROI.

Why measuring ROI improves overall marketing performance

Understanding ROI ensures your marketing budget is invested wisely. It highlights which strategies deliver genuine results and which need improvement. By aligning your campaigns with measurable outcomes, you can scale successful tactics and eliminate wasted spend.

For businesses targeting professionals and decision-makers, LinkedIn’s precise targeting and measurable data make it one of the most powerful advertising platforms for long-term growth.

How Lillian Purge helps businesses improve LinkedIn Ads ROI

At Lillian Purge, we help businesses design and manage LinkedIn Ads campaigns that deliver measurable returns. From setting up conversion tracking and CRM integrations to analysing campaign performance, we ensure every part of your strategy is data-driven and ROI-focused.

Our team combines SEO expertise with paid advertising insights to build strategies that attract local and B2B audiences effectively. Whether your goal is lead generation, brand awareness, or measurable sales growth, we’ll help you optimise your LinkedIn Ads for maximum ROI.

We have also written in depth articles on How local businesses can use LinkedIn Ads to attract clients and how Much Does it Costs to Advertise on Linkedin? as well as our Linkedin Advertising Guidance Hub to give you further guidance.