Are LinkedIn Ads Cheaper Than Facebook Ads?

Are LinkedIn Ads Cheaper Than Facebook Ads?

If you’re advertising your business online, you’re probably familiar with Facebook and LinkedIn ads. Both platforms offer a range of ad formats to help businesses reach their target audience.

However, you may be wondering which platform is more cost-effective for your business. In this article, we’ll explore whether LinkedIn ads are cheaper than Facebook ads.

LinkedIn is a social media platform designed for professionals and businesses. It has over 700 million active users, making it a great platform to reach a professional audience. LinkedIn offers a range of ad formats, including sponsored content, sponsored messaging, and display ads.

Facebook, on the other hand, has over 2.8 billion active users and offers a wide range of ad formats, including image ads, video ads, carousel ads, and more.

While both platforms offer a range of ad formats, the cost of advertising on each platform can vary. In the next section, we’ll take a closer look at the cost of advertising on LinkedIn and Facebook and compare the two platforms to determine which one is more cost-effective for your business.

Overview of LinkedIn Ads

A computer with two open browser tabs, one showing LinkedIn Ads and the other showing Facebook Ads. A price comparison chart displayed on the screen

If you are looking for a professional networking platform to advertise your business, LinkedIn Ads can be a great option. LinkedIn Ads allows you to target professionals based on their job title, company, industry, and other factors.

In this section, we will discuss the different ad formats, targeting options, and bidding strategies available on LinkedIn Ads.

Ad Formats on LinkedIn

LinkedIn Ads offers a variety of ad formats to choose from, including sponsored content, sponsored InMail, and display ads.

Sponsored content appears in the LinkedIn feed of your target audience and can be in the form of a single image, carousel, or video. Sponsored InMail allows you to send personalized messages directly to the inbox of your target audience. Display ads appear on the right-hand side of the LinkedIn desktop interface.

Targeting Options

One of the biggest advantages of LinkedIn Ads is its targeting options. You can target professionals based on their job title, job function, company, industry, location, and more.

You can also target specific LinkedIn Groups or followers of specific LinkedIn Company Pages. This allows you to reach a highly targeted audience that is most likely to be interested in your product or service.

Bidding Strategies

LinkedIn Ads offers two bidding strategies: cost per click (CPC) and cost per impression (CPM).

CPC allows you to pay only when someone clicks on your ad, while CPM allows you to pay for every 1,000 impressions of your ad. You can also set a bid range and a daily budget to control your ad spend.

Also See: Are LinkedIn Ads Cheaper Than Google Ads?

Overview of Facebook Ads

Facebook Ads is a popular advertising platform that allows businesses to reach a large audience through targeted ads. With over 2.8 billion monthly active users, Facebook offers a vast potential audience for businesses of all sizes.

Ad Formats on Facebook

Facebook offers a variety of ad formats to choose from, including image ads, video ads, carousel ads, and more. Each ad format has its own unique benefits and can be customized to fit the needs of your business.

Targeting Capabilities

One of the biggest advantages of Facebook Ads is its powerful targeting capabilities. 

This allows businesses to reach the right audience with the right message, increasing the effectiveness of their ads.

Ad Auction and Bidding

Facebook Ads operates on an auction-based system, where businesses bid on ad placement. The ad auction takes into account the bid amount, ad relevance, and estimated action rates to determine which ads are shown to users.

This means that businesses with higher bids and more relevant ads are more likely to win ad placement.

Also See: Ways To Make Money With PPC

Cost Comparison

When it comes to advertising on social media, two of the biggest players in the game are LinkedIn and Facebook. Both platforms offer a range of advertising options, including pay-per-click (PPC) and cost-per-impression (CPM) ads.

However, one of the most important considerations for any advertiser is the cost of advertising. In this section, we’ll compare the cost of advertising on LinkedIn and Facebook.

Average Cost-Per-Click (CPC)

LinkedIn’s average cost-per-click (CPC) is generally higher than Facebook’s. According to a study by AdEspresso, the average CPC for LinkedIn ads is $5.61, while the average CPC for Facebook ads is $0.97.

This is likely due to the fact that LinkedIn is a more niche platform, with a smaller audience and a higher cost-per-acquisition (CPA) for advertisers.

Cost-Per-Impression (CPM)

The cost-per-impression (CPM) for LinkedIn ads is also generally higher than Facebook’s. According to the same AdEspresso study, the average CPM for LinkedIn ads is $6.59, while the average CPM for Facebook ads is $7.19.

This means that while LinkedIn ads may be more expensive on a per-click basis, they may be more cost-effective on a per-impression basis.

Factors Influencing Ad Costs

There are a number of factors that can influence the cost of advertising on both LinkedIn and Facebook. These include:

  • Target audience: The more specific your target audience, the higher the cost of advertising is likely to be.
  • Ad placement: Ads that appear in more prominent positions on the platform (such as in users’ news feeds) are generally more expensive than those that appear in less prominent positions (such as in the sidebar).
  • Ad format: Different ad formats (such as image ads, video ads, or carousel ads) have different costs associated with them.
  • Ad quality: Advertisers with higher-quality ads (as determined by the platform’s algorithms) may receive lower costs-per-click or per-impression.

Also See: How To Create An Advertising Plan

Effectiveness and ROI

When it comes to advertising on social media, effectiveness and ROI are two critical factors to consider. In this section, we’ll compare LinkedIn Ads and Facebook Ads based on their engagement rates, conversion rates, and industry benchmarks.

Engagement Rates

Engagement rates are a measure of how well your ads are resonating with your target audience.

LinkedIn Ads tend to have higher engagement rates than Facebook Ads due to their professional nature. LinkedIn users are more likely to engage with content that is relevant to their professional interests. On the other hand, Facebook Ads may have a wider reach, but the engagement rates tend to be lower.

Conversion Rates

Conversion rates are a measure of how well your ads are performing in terms of driving conversions, such as sign-ups, downloads, or purchases.

LinkedIn Ads tend to have higher conversion rates than Facebook Ads due to their targeting capabilities. LinkedIn Ads allow you to target specific job titles, industries, and companies, which can result in higher-quality leads.

Facebook Ads, while they may have a larger audience, may not be as effective in driving conversions.

Industry Benchmarks

Industry benchmarks can provide insights into how well your ads are performing compared to your competitors.

According to a study by AdStage, the average cost per click (CPC) for LinkedIn Ads is $6.50, while the average CPC for Facebook Ads is $1.72.

However, the average cost per conversion (CPC) for LinkedIn Ads is $28.84, while the average CPC for Facebook Ads is $19.68.

These benchmarks suggest that while LinkedIn Ads may be more expensive, they may also be more effective in driving conversions.

Also See: How To Start A Business From Home

Budgeting Strategies

Setting Ad Budgets

When it comes to setting ad budgets, both LinkedIn and Facebook offer a variety of options that can be customized to fit your needs.

Both platforms allow you to set a daily or lifetime budget, as well as choose between cost-per-click (CPC) or cost-per-impression (CPM) pricing models.

One key difference between the two platforms is the minimum budget required to run ads. While Facebook allows you to set a daily budget as low as $1, LinkedIn requires a minimum daily budget of $10.

This means that if you have a limited budget, Facebook may be a more cost-effective option.

Another factor to consider when setting ad budgets is the target audience.

LinkedIn’s targeting options are more focused on professional demographics, such as job title, company size, and industry, while Facebook’s targeting options are more diverse and can include interests, behaviors, and demographics.

Optimizing Ad Spend

To optimize your ad spend on either platform, it’s important to track your ad performance and make adjustments as needed.

One strategy to optimize ad spend is to test different ad formats and targeting options to see which perform best.

For example, you may find that video ads perform better on Facebook, while sponsored content works better on LinkedIn.

This can involve adjusting demographics, interests, and behaviors based on the performance of your ads.

Also See: How to Sell Ad Space to Local Businesses

Choosing the Right Platform

When it comes to advertising on social media, two of the most popular platforms are LinkedIn and Facebook. choose the right one based on your specific business needs.

Business Objectives Alignment

Before deciding on which platform to advertise on, it’s important to align your business objectives with the strengths of each platform.

For example, if your objective is to generate leads and conversions, LinkedIn might be a better choice since it’s a professional networking platform where users are more likely to be in a business mindset.

On the other hand, if your objective is to increase brand awareness, Facebook might be a better choice since it has a larger user base and allows for more creative ad formats.

Audience Demographics

Another important consideration when choosing between LinkedIn and Facebook is your target audience demographics.

LinkedIn users are typically professionals with higher income levels, while Facebook users are more diverse in terms of age, income, and education.

However, if your target audience is more diverse, Facebook might be the better choice.

Industry Considerations

Finally, it’s important to consider your industry when choosing between LinkedIn and Facebook.

Certain industries, such as B2B and finance, tend to perform better on LinkedIn due to its professional nature.

Other industries, such as fashion and beauty, tend to perform better on Facebook due to its visual nature and younger user base.

It’s important to research your industry and understand which platform is better suited for your business.

best.joydeep@gmail.com avatar

Leave a Reply

Your email address will not be published. Required fields are marked *

Liyana Parker

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.