Are LinkedIn Ads Cheaper Than Google Ads?

Are LinkedIn Ads Cheaper Than Google Ads?

Are you trying to decide between LinkedIn Ads and Google Ads for your next advertising campaign? It’s a tough decision, as both platforms offer unique advantages. However, one of the biggest factors to consider is cost.

LinkedIn Ads and Google Ads both use a pay-per-click (PPC) model, meaning you only pay when someone clicks on your ad. However, the cost per click (CPC) can vary widely between the two platforms.

In this article, we’ll take a closer look at the cost of advertising on LinkedIn and Google, and help you determine which platform is the most cost-effective for your business.

Overview of LinkedIn Ads vs. Google Ads

A comparison of LinkedIn and Google Ads, with cost analysis

If you are considering advertising your business online, you might be wondering which platform to choose between LinkedIn Ads and Google Ads. Both platforms have their strengths and weaknesses, and it’s important to understand them before making a decision.

LinkedIn Ads is a social media platform that allows you to target professionals and businesses. Its primary audience is B2B marketers who want to reach decision-makers in various industries.

On the other hand, Google Ads is a search engine platform that allows you to target users based on their search queries. Its primary audience is B2C marketers who want to reach consumers who are actively searching for products or services.

One of the main advantages of LinkedIn Ads is its ability to target specific job titles, industries, and company sizes. This allows you to reach decision-makers directly, which can be beneficial for B2B marketing. However, LinkedIn Ads can be more expensive than Google Ads, especially if you are targeting a niche audience.

Google Ads, on the other hand, allows you to reach a wider audience at a lower cost. You can target users based on their search queries, which means you can reach people who are actively looking for products or services like yours.

Also See: Ways To Make Money With PPC

Cost Comparison Factors

When comparing the cost of LinkedIn Ads and Google Ads, there are several factors that come into play. Here are some of the key factors to consider:

Bidding Strategies

Both LinkedIn Ads and Google Ads use auction-based bidding systems, where advertisers bid on the cost-per-click (CPC) or cost-per-impression (CPM) for their ads. However, the bidding strategy used by each platform can have an impact on the cost of your ads.

Google Ads uses a second-price auction system, where the highest bidder wins the auction but only pays slightly more than the second-highest bid. This can lead to lower costs for advertisers, as they may end up paying less than their maximum bid.

LinkedIn Ads, on the other hand, uses a first-price auction system, where the highest bidder wins the auction and pays the full amount of their bid. This can lead to higher costs for advertisers, as they may end up paying more than their maximum bid.

Ad Formats

This can make it easier for advertisers to find an ad format that works for their business and budget.

LinkedIn Ads, on the other hand, primarily offers sponsored content ads and sponsored InMail ads. While these ad formats can be effective for reaching a professional audience, they may not be suitable for all businesses.

Target Audience

The target audience for your ads can also impact the cost of your campaigns.

LinkedIn Ads is known for its ability to target specific professional audiences based on factors such as job title, company size, and industry. This can be an advantage for businesses looking to reach a specific audience, but it can also lead to higher costs if there is a lot of competition for that audience.

Google Ads, on the other hand, offers a wide range of targeting options, including location, device, and language targeting. This can make it easier for advertisers to reach a broader audience, but it may not be as effective for reaching a specific professional audience.

Industry Competition

Finally, the level of competition in your industry can also impact the cost of your ads. If there are a lot of advertisers competing for the same audience and keywords, the cost of your ads may be higher. This is true for both LinkedIn Ads and Google Ads.

Also See: How To Create An Advertising Plan

Average Cost Metrics

When comparing LinkedIn Ads to Google Ads, one of the most important factors to consider is the average cost metrics. These metrics can help you determine which platform will provide the most cost-effective advertising solution for your business.

Cost Per Click (CPC)

Cost Per Click (CPC) is the amount you pay each time someone clicks on your ad. According to recent data, the average CPC for LinkedIn Ads is around $5.26, while the average CPC for Google Ads is around $2.69. This means that, on average, LinkedIn Ads are more expensive per click than Google Ads.

Cost Per Impression (CPM)

Cost Per Impression (CPM) is the amount you pay for every 1,000 times your ad is shown. The average CPM for LinkedIn Ads is around $6.59, while the average CPM for Google Ads is around $2.80. This means that, on average, LinkedIn Ads are more expensive per impression than Google Ads.

Cost Per Action (CPA)

Cost Per Action (CPA) is the amount you pay for each desired action, such as a form submission or a download.

Unfortunately, there is no recent data available for average CPA on LinkedIn Ads. However, Google Ads has an average CPA of around $48.96.

Overall, while LinkedIn Ads tend to be more expensive than Google Ads on a per-click and per-impression basis, it’s important to consider the specific goals of your advertising campaign. If your goal is to generate quality leads, LinkedIn Ads may still be a cost-effective option due to their targeted audience and professional user base.

Also See: How To Start A Business From Home

Advantages of LinkedIn Ads

If you’re considering advertising on LinkedIn, there are several advantages that make it a great option for reaching your target audience.

Professional Targeting

One of the biggest advantages of LinkedIn Ads is the ability to target your ads to a specific professional audience. With over 700 million members, LinkedIn has a vast amount of data on its users, including job titles, industries, and skills.

This allows you to create highly targeted ads that are more likely to reach the right people.

B2B Focus

LinkedIn is a social network for professionals, which makes it an ideal platform for B2B advertising. If your business is targeting other businesses, LinkedIn Ads can help you reach decision-makers and influencers in your industry.

Content Types

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

Sponsored content is a great option for promoting blog posts, case studies, and other content that can help establish your brand as a thought leader in your industry. Sponsored InMail allows you to send personalized messages to your target audience, while display ads can help increase brand awareness.

Also See: Small Business Employee Benefits: What You Need To Know

Advantages of Google Ads

Google Ads, also known as Google AdWords, is a popular advertising platform that allows businesses to reach potential customers through targeted ads. Here are some advantages of using Google Ads:

Vast Reach

Google is the most widely used search engine in the world, with over 3.5 billion searches per day. This means that Google Ads has the potential to reach a vast audience.

With Google Ads, you can target users based on their location, search terms, and browsing history, making it easier to reach the right people at the right time.

Diverse Ad Types

Google Ads offers a variety of ad types, including search ads, display ads, video ads, and shopping ads. This allows businesses to choose the type of ad that best suits their needs and target audience.

For example, if you’re a retailer, you can use shopping ads to showcase your products and drive sales.

Intent-Based Targeting

One of the biggest advantages of Google Ads is its intent-based targeting. When someone searches for something on Google, it’s usually because they have a specific need or interest.

This means that Google Ads can target users who are actively looking for products or services like yours. By targeting users based on their intent, you can increase the likelihood of conversions and drive more sales.

Also See: How to Sell Ad Space to Local Businesses

Strategic Considerations for Ad Spend

When deciding where to allocate your ad spend, it’s important to consider your marketing objectives, customer journey stages, and budget allocation.

Marketing Objectives

Your marketing objectives will determine which platform is best suited for your needs.

If your goal is to increase brand awareness, LinkedIn may be the better choice as it caters to a professional audience and can help establish your brand as an industry leader.

On the other hand, if your objective is to drive sales or leads, Google Ads may be more effective as users are actively searching for products or services.

Customer Journey Stages

Consider where your target audience is in the customer journey when deciding where to allocate your ad spend.

If they are in the awareness stage, LinkedIn may be more effective as it can help introduce your brand to a wider audience. If they are in the consideration or decision stage, Google Ads may be more effective as users are actively searching for solutions to their problems.

Budget Allocation

When allocating your budget, consider the cost per click (CPC) and cost per impression (CPM) for each platform.

LinkedIn generally has a higher CPC and CPM than Google Ads, but it may be worth the investment if it aligns with your marketing objectives and customer journey stages.

Also See: How To Start A Home Service Business

Case Studies and Industry Benchmarks

When comparing the cost of LinkedIn Ads vs. Google Ads, it’s important to look at case studies and industry benchmarks. While the cost of advertising on these platforms can vary widely depending on your industry, target audience, and ad format, there are some general trends that can be observed.

According to a study by Wordstream, the average cost per click (CPC) for LinkedIn Ads is $5.61, while the average CPC for Google Ads is $2.69. However, it’s worth noting that LinkedIn Ads tend to have a higher conversion rate than Google Ads, which can offset the higher cost per click.

One case study from Hootsuite found that a B2B software company was able to generate leads at a lower cost per acquisition (CPA) on LinkedIn Ads than on Google Ads. The company’s LinkedIn Ads had a CPA of $47.50, while their Google Ads had a CPA of $60.73.

Another case study from AdEspresso found that a B2B marketing agency was able to generate leads at a lower cost per lead (CPL) on LinkedIn Ads than on Google Ads. The agency’s LinkedIn Ads had a CPL of $16.49, while their Google Ads had a CPL of $22.64.

Conclusion

In conclusion, both LinkedIn Ads and Google Ads offer unique advantages and disadvantages when it comes to advertising.

LinkedIn Ads provide a highly targeted audience with a professional focus, while Google Ads offer a broader reach with a wider range of ad formats.

Google Ads, especially for smaller businesses with limited budgets. However, the higher cost of LinkedIn Ads may be worth it for businesses that are targeting a specific professional audience.

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