LinkedIn ad prices have soared due to a surge in demand reportedly driven 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. Marketers are seeing good returns, but keep in mind it comes with a higher cost, so be sure to check your budget before making the switch.
Ad prices soar. In the past year, the cost of ads on the Microsoft-owned platform has surged by as much as 30% in some cases, reports the Financial Times. Leesha Anderson, the vice-president of digital marketing and social media at Outcast ad agency, told the paper:
- “This is LinkedIn season. Most have switched over to LinkedIn over the past year . . . A few weeks ago most of our clients were off X. Now they are all off X.”
One media buyer revealed that the cost per 1,000 impressions of an ad was now as much as $300 for premium LinkedIn 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 by an auction system based on market demand. The greater the demand, the higher the ad price.
ROI. Despite the steep rise in LinkedIn ad prices, marketers are claiming to see substantial returns on their investments. Advertisers are reporting as much as 20% ROI, indicating that for every $100 spent, they are generating profits of $120.
LinkedIn ad revenue. The platform’s annual ad revenue soared by 10.1% year-on-year in 2023 to almost $4 billion, according to Insider Intelligence. The research group now forecasts that growth will soar by an additional 14.1% in 2024.
What Microsoft is saying. Penry Price, LinkedIn’s vice-president of marketing solutions, said that “more brands” are investing their ad spend in LinkedIn because of the platform’s unique targeting capabilities. The platform claims to have twice the buying 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.
Get the daily newsletter search marketers rely on.
Deep dive. Read LinkedIn Ads in 2023 for more information on how the platform has strengthened its position with B2B advertisers.