LinkedIn ad prices have soared due to a surge in demand fueled by the advertiser boycott of X.
Why we care. If you’re thinking about moving your ad spend away from platforms like X in 2024, LinkedIn could be a solid alternative to consider. Sellers are seeing good returns, but keep in mind that it comes at a higher cost, so be sure to check your budget before making the switch.
Ad prices are increasing. In the past year, the cost of ads on the Microsoft-owned platform has risen by as much as 30% in some cases, reports the Financial Times. Leesha Anderson, vice president of digital marketing and social media at advertising agency Outcast, told the paper:
“Tis the season for LinkedIn. Most have switched to LinkedIn in the last year. . . A few weeks ago most of our customers were off X. Now they’re all off X.”
A media buyer revealed that the cost per 1,000 ad impressions was now $300 for LinkedIn premium campaigns. In contrast, running a comparable campaign on Meta’s platforms costs between $10 and $15.
How ad prices are calculated. LinkedIn ad prices are determined through an auction system based on market demand. The higher the demand, the higher the ad price.
ROI Despite the steep rise in LinkedIn ad prices, marketers claim to get a substantial return on their investment. Advertisers report an ROI of 20%, which means that for every $100 spent, they generate $120 in profit.
LinkedIn advertising revenue. The platform’s annual ad revenue rose 10.1% year-over-year in 2023 to nearly $4 billion, according to Insider Intelligence. The research group now predicts that growth will increase by an additional 14.1% in 2024.
What Microsoft says. Penry Price, LinkedIn’s vice president of marketing solutions, said “more brands” are investing their ad spend on LinkedIn because of the platform’s unique targeting capabilities. The platform claims to have twice the purchasing power of the average web audience, with four out of five members driving business decisions.
Search Engine Land has reached out to Microsoft for additional comment.
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deep dive Read LinkedIn’s announcements in 2023 to learn more about how the platform has strengthened its position with B2B advertisers.
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