Running Targeted LinkedIn Ads—a little more detail

Cost Structure and Minimums

LinkedIn uses a bidding model with options like Cost Per Click (CPC), Cost Per Impression (CPM), or Cost Per Send (for Sponsored InMail).
The minimum CPC generally ranges from (click here for more).
Daily budget minimums are usually around (click here for more).

Precision Targeting

The platform’s ability to target users based on job title, industry, company size, and even specific companies or job functions is unmatched, which is why costs are higher. This targeting precision is valuable if your business relies on reaching specific professionals or decision-makers. Remember, NEOs are pre-loaded on LinkedIn—and NEOs are more likely than anyone else to be business decision-makers, even in large companies.

ROI Considerations for SMEs

For SMEs, investing in LinkedIn ads could be worth it if:

Your product/service has a higher price point or significant lifetime value (e.g., B2B services, consulting, SaaS products).
Your NEO target market includes business leaders, executives, or niche professionals, where each NEO conversion holds substantial value.
You have clear, specific goals (e.g., generating leads, building brand awareness in a targeted industry).

Optimising for Affordability

To make LinkedIn Ads more cost-effective for a small business:

Start Small: Begin with a low budget to test ad performance and refine targeting.
Narrow Targeting: Target NEOs to reduce wasted ad spend.
Optimise Creatives and Copy: Ensure your ads resonate with the NEO audience to drive better engagement and conversions.
Track ROI Rigorously: Monitor results to see if LinkedIn Ads are driving value compared to other platforms.

For small businesses focused on niche markets or high-value sales, LinkedIn Ads can provide strong results despite the higher costs. However, other platforms may offer better affordability and reach for lower-cost products or broad-market services.