LinkedIn’s advertising cost is determined by an online auction system that allows you to place competitive bids for your ads to win placement.
When you run ads, you compete with other advertisers who want to reach a similar target audience.
Whenever a member visits LinkedIn.com, we run an auction. A campaign that has won an auction for that audience will have its ad served to those members on LinkedIn.com. Similarly, message ads that win the auction will be delivered to their target audience members.
The factors that determine the price you pay for ads are your target audience, your bidding strategy, your objective, and your ad relevance score.
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Target audience - You bid against other advertisers trying to reach the same LinkedIn members. The cost required to win the auction depends on the desirability of your target audience.
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Bidding strategy - The bidding strategy you select for your campaign will influence how much you pay per key result.
- Maximum delivery bidding strategy uses automated bidding to ensure your campaign is competitive in the ad auction. It’s designed to maximize your campaign results while utilizing your full budget.
- Manual bidding strategy gives you the most control over your bid in the ad auction.
- Cost cap bidding strategy allows advertisers to set the maximum cost per action (CPA) that they are willing to pay for results.
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Objective - The campaign objective you choose will determine the optimization goals and bidding strategies available for your campaign. Your optimization goal and bidding strategy will determine how your campaign is charged.
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Your ad relevance score - The LinkedIn auction rewards relevant, engaging ads. Your ads receive relevance scores based on factors like click-through rate, comments, likes, and shares. The more relevant your ad, the lower the price you pay.
You can control your campaign spend by setting a budget, schedule, and bidding strategy.
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