The Rise of LinkedIn Advertising

Chuck Forbes - January 15, 2024

Where to place your advertising dollars should be a constant conversation for any digital marketing team. Staying up-to-date on what is happening across advertising platforms is key, but not for just technical updates by the platform, but also user sentiment and behavior. Where there is a “winner” there could also be a platform that is on the decline. Deciding how that impacts your advertising strategy is not a one size fits all approach.

Since Elon Musk has purchased Twitter and changed the platform to “X,” many brands have moved advertising dollars away from the platform as a way to show their disapproval with Elon and how he operates his social media business. As marketers, we are called upon to put our personal bias aside so we have a clear strategy on what is best for our brands and companies.

Digital marketers appear to have chosen LinkedIn as a platform alternative to invest According to the Financial Times, LinkedIn Ad investment has soared steadily, as much as 30% in the past 10 months. A likely cause of this is budget being moved off of X, combined with LinkedIn having historically good ROI for advertising campaigns. The reason LinkedIn is seeing great investment increases is because they have always been the most expensive social media platform to advertise on. Digital Marketers are learning fast, what a budget may have gotten you on Meta or X, may not be the budget that you need to be successful on LinkedIn. But LinkedIn has not recently increased ad pricing, they have just known the power of their data for a long time.

If you are thinking of investing or investing more in LinkedIn, here is what you should consider:

  • LinkedIn uses their own auction system to determine which ads are shown and when. This is going to demand a greater ad price to win. It’s kind of like gambling at the casino, if you want to win big, you have to bet big.
  • Higher ad prices have not been met with negative reviews, as marketers still claim to see substantial returns on their investments, in some cases greater than 25%.
  • When developing a strategy for LinkedIn, use the platform first. Take notice of what ads you see, where they are and when you see them. Like any platform, LinkedIn wants an efficient user-friendly experience.
  • Remember the purpose of LinkedIn – users are there for business. You will have access to certain targeting capabilities that are unavailable on other platforms, but that power also comes with responsibility. LinkedIn users are a strong community for business, knowledge, and connections within their industry. Undesired or unrelatable content is reported all the time.
  • Be prepared to have deeper engagement with your audience, including conversations through LinkedIn messenger, depending on the ad types you chose to run. Connecting with users on LinkedIn through sponsored direct messages can be just as successful as your video ad running in the LinkedIn news feed.

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