Are you advertising on LinkedIn and wondering how your ads are performing compared to industry averages? As a marketer, understanding LinkedIn ad benchmarks is crucial for assessing the success of your campaigns.
This guide will provide you with the key LinkedIn advertising benchmarks to track in 2024 for different objectives and formats. With the right metrics, you can set realistic goals and optimize your LinkedIn ads for better results.
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What Are LinkedIn Ad Benchmarks?
LinkedIn ad benchmarks are standardized points of reference that indicate average or expected performance levels across major metrics like clicks, costs, and conversions.
Key LinkedIn ad benchmarks include:
- Click-Through Rate (CTR)
- Cost-Per-Click (CPC)
- Cost-Per-Conversion
- Engagement Rates
- Lead Conversion Rates
Comparing your campaign‘s actual metrics to these industry benchmarks shows you how your ads are stacking up. If your CTR is lower than the average 0.5%, for example, you know there‘s room for improvement.
Tracking benchmarks allows you to:
- Gauge the health of your campaigns
- Set realistic goals and forecasts
- Optimize underperforming ads
- Identify issues and opportunities
In other words, LinkedIn ad benchmarks help you evaluate and improve your return on ad spend. Rather than flying blind, you can make data-driven decisions based on typical performance.
Now let‘s dive into the key LinkedIn ad types and formats you need to know.
LinkedIn Ad Types and Formats
LinkedIn offers advertisers multiple options when it comes to choosing ad formats. Selecting the right ad type for your goals and audience is critical.
Here are the most popular LinkedIn ad formats with examples of effective use cases:
Sponsored Content
Sponsored Content refers to native ads that match the look and feel of organic posts in the LinkedIn feed. You can use text, images, or video.
Use Cases:
- Increase brand awareness
- Promote thought leadership content
- Drive traffic to your site
- Generate engagement
Sponsored Content is versatile for a range of branding and demand generation objectives.
Sponsored InMail
Sponsored InMail allows you to send customized messages directly to LinkedIn members via their inbox. You can target InMails based on profile criteria.
Use Cases:
- Personalized outreach and sales prospecting
- Event promotions
- Lead generation
InMail‘s personal nature makes it ideal for one-to-one messaging.
Dynamic Ads
Dynamic Ads automatically pull member profile data like name, title, and company to customize ad content in real-time.
Use Cases:
- Boost engagement
- Increase followers
- Build awareness
Dynamic ads create highly relevant and personalized experiences.
Text Ads
Text ads contain short headline and description copy and appear primarily on the sidebar or top of the LinkedIn feed.
Use Cases:
- Drive traffic to your site
- Increase clicks and conversions
- Low-cost promotions
Text ads are best for direct-response objectives focused on driving clicks.
Conversation Ads
Conversation Ads are interactive units that prompt viewers to engage with tailored content based on their responses.
Use Cases:
- Lead generation
- Audience engagement
- Brand interaction
Conversation Ads foster two-way engagement between brands and prospects.
Carousel Ads
Carousel ads feature multiple cards/images that viewers can horizontally scroll through. Each card can have its own link.
Use Cases:
- Showcase products or services
- Highlight brand stories or campaigns
- Promote different content offers
Carousels allow advertisers to display more information within a single ad.
Video Ads
Video ads play different video content like brand stories, product explainers, or thought leadership.
Use Cases:
- Engage audiences
- Build brand awareness
- Convey key messages creatively
Video‘s visual motion and sound create an immersive experience.
Job Ads
Job ads help you promote open positions and source qualified candidates for your company right on LinkedIn.
Use Cases:
- Recruit employees
- Drive applicants to your careers page
- Target passive job seekers
Job ads are purpose-built to attract talent.
Lead Gen Forms
Lead gen forms let visitors submit contact information without leaving the LinkedIn platform.
Use Cases:
- Capture quality leads from your target audience
- Promote gated content offers, events, and trials
Lead gen simplifies collecting lead contact data.
Now that we‘ve covered the core LinkedIn ad types, let‘s explore the key performance benchmarks.
Crucial LinkedIn Ad Benchmarks and Metrics
To assess your LinkedIn ad results, pay attention to these essential benchmarks:
Click-Through Rate
Click-through rate (CTR) measures how often people click your ad after it‘s displayed. It‘s a key indicator of how compelling your messaging and targeting is.
To calculate CTR, divide clicks by impressions:
CTR = (Clicks / Impressions) x 100
For example, if you had 300 clicks and 10,000 impressions, your CTR would be 3%:
(300 / 10,000) x 100 = 3% CTR
According to LinkedIn, the average CTR across ad formats is:
- Sponsored Content: 0.90%
- Text ads: 0.81%
- Dynamic ads: 0.53%
Aim for at least a 0.5% CTR as a minimum goal. Higher CTR signals your ads and targeting are resonating.
Cost-Per-Click (CPC)
Cost-per-click reveals how much you pay each time someone clicks your ad. CPC indicates what it costs to drive engagement.
To calculate CPC, divide total ad spent by clicks:
CPC = Ad Spent / Clicks
For example, if you spent $1,000 and got 500 clicks, your CPC is $2:
$1,000 / 500 clicks = $2 CPC
Average LinkedIn CPC rates typically range from:
- $3 – $8 per click
Try to keep CPC under $5. Lower CPC is better but may require broader targeting.
Cost-Per-Thousand Impressions (CPM)
CPM reveals what you pay for every 1,000 impressions (views) of your ad. It measures your ad campaign‘s media cost efficiency.
To calculate CPM, divide ad spent by impressions (in thousands)
CPM = Ad Spent / (Impressions / 1000)
For example, if you spent $5,000 and had 1,000,000 impressions, your CPM would be $5:
$5,000 / (1,000,000 / 1000) = $5 CPM
Average LinkedIn CPM rates are:
- $4 – $12 for most ads
- $50+ for highly targeted ads
Shoot for sub $10 CPM when possible. Higher CPM signals your targeting is more niche and expensive.
Cost-Per-Lead (CPL)
For lead gen ads, cost-per-lead shows your average cost to acquire each new lead through LinkedIn ads.
To calculate CPL, divide total ad spent by leads:
CPL = Ad Spent / Leads
For example, if you spent $3,000 and generated 30 leads, your CPL would be $100:
$3,000 / 30 leads = $100 CPL
Average cost per lead varies greatly based on audience, offer, and industry. According to WordStream, typical LinkedIn CPL ranges from:
- $50 – $200+ per lead
Track CPL closely to value the quality of leads you‘re capturing.
Lead Gen Form Conversion Rate
For lead gen ads, form conversion rate is the percentage of opened forms viewers complete. Higher rates signal better targeting and compelling offers.
To calculate conversion rate, divide form submissions by form opens:
Conversion rate = (Form Submissions / Form Opens) x 100
For example, if you had 100 form opens and 10 submissions, your rate would be 10%:
(10 / 100) x 100 = 10% conversion rate
Good lead gen conversion rates on LinkedIn tend to exceed:
- 10%+ form completion rate
If your rate falls below 5%, rework your offer and form for higher quality leads.
Ad Conversion Rate
For ads focused on driving site actions, conversion rate is the percentage of ad clicks that convert into goals like signups, purchases, etc.
To calculate conversion rate, divide goal completions by clicks:
Conversion rate = (Goal Completions / Clicks) x 100
For example, if you had 500 clicks and 20 signups, your conversion rate would be 4%:
(20 / 500) x 100 = 4% conversion rate
According to WordStream, respectable LinkedIn conversion rate benchmarks are:
- 2-4%
If your rate falls below 2%, look to improve your landing page and tighten your targeting.
Engagement Rate
For Sponsored Content, engagement rate reveals how well your ads generate reactions and discussion. Stronger engagement signals content that resonates.
Engagement rate is calculated by dividing engagement actions (likes + comments + shares) by impressions.
For example, if your Sponsored Content got 300 engagements off 10,000 impressions, your rate would be 3%:
(300 / 10,000) x 100 = 3% engagement rate
Good engagement benchmarks for LinkedIn Sponsored Content are:
- 0.09% > Average
- 0.5%+ = High engagement
Analyze engagement trends to create more compelling content.
Cost-Per-Conversion
For conversion campaigns, cost-per-conversion shows how much you must spend to acquire a conversion result like a signup or purchase.
To calculate cost per conversion, divide total ad spent by conversions:
Cost per conversion = Total Ad Spent / Conversions
For example, if you spent $1,000 and generated 50 conversions, your cost per conversion would be $20:
$1,000 / 50 conversions = $20 cost per conversion
Average cost per conversion benchmarks on LinkedIn tend to range from:
- $20 – $50+
Work to reduce cost per conversion through testing and optimization.
Get More from Your LinkedIn Ads
Measuring and optimizing based on LinkedIn‘s key advertising benchmarks is crucial for assessing performance and maximizing your ROI.
Focus on the metrics aligned with your campaign goals. Set realistic targets based on averages. Continuously test different targeting, ad formats, creatives, and placements.
Mastering LinkedIn advertising KPIs elevates your strategy and enables data-driven decision making. With the right benchmarks, you can evaluate successes, address issues, and ultimately get the most value from your LinkedIn ad investment.
