LinkedIn Ads Costs: Budgeting Guide

"LinkedIn is expensive." This is the most common objection I hear. And it is true.

• LinkedIn CPM: $50 - $150.
• Meta CPM: $10 - $20.
• Google CPM: $5 - $15. So why do B2B companies spend millions here? Because of Deal Size.

The Math of Expensive Traffic

If you are selling a $50 T-Shirt, LinkedIn will bankrupt you. But if you are selling a $50,000 SaaS contract, the math changes. Scenario:

• You spend $5,000 on LinkedIn.
• You get 5 leads. (CPL: $1,000).
• Your Sales team closes 1 of them. (Close Rate: 20%).
• Revenue: $50,000.
• ROAS: 10x.

The CPL is high ($1,000). But the ROAS is massive. On Facebook, you might get leads for $50, but they might be students or freelancers who can't afford your software.

Average Costs in 2024

• Average CPC: $8 - $15 (US/UK/Canada).
• Average CPL (Lead Form): $50 - $150.
• Average CPL (Website): $150 - $300.

How to Budget (The Reverse Engineer Method)

Do not just "test with $500." You will learn nothing. You need Statistical Significance.

1. Target CPA: How much are you willing to pay for a Lead? (e.g., $100).
2. Required Leads: You need at least 10 leads to see if they are good quality.
3. Minimum Budget: $100 x 10 = $1,000. Rule: If you cannot spend at least $1,500 - $3,000 per month, do not start LinkedIn Ads. Stick to Meta or Google.

Reducing Costs

1. Use Lead Gen Forms: They are 5x cheaper than Website Traffic.
2. Manual Bidding: Bid "Floor + $0.10" to get the cheapest clicks.
3. Avoid "Seniority Tax": Targeting "CXOs" is most expensive. Target "Directors" or "VPs" – they are often the champions who do the research anyway.

Summary

LinkedIn is the "Business Class" of advertising. You pay for the legroom (targeting quality) and the service (intent). If you can't afford the ticket, don't fly. But if you need to reach the decision maker, it is the only airline in town.