What budget should you plan for your Linkedin Ads campaigns?

Experienced marketers know that every business has its own recipe for success. Finding the right ingredients takes time and effort, and that includes setting and managing a Linkedin campaign budget. We explain to you what budget to plan for your Linkedin Ads.

Linkedin advertising format: what is it?

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When launching a LinkedIn Ads campaign, choosing the format is crucial, as it will determine not only how your ad looks, but also how it works. LinkedIn currently offers a dozen formats, with new options appearing regularly.

On top of that, you'll need to define a goal for your advertising campaign. This choice will influence the formats available, because LinkedIn will offer you the ones it considers most relevant to achieve your goal.

Each format has its own specificities, and some are better suited than others depending on what you want to achieve. As each advertising format has its own particularities, it will also be necessary to configure them correctly to get the most out of them. To maximize the effectiveness of your advertising campaigns, it is therefore super important to choose the right LinkedIn Ads format and to set it up correctly. To give you a helping hand, we're going to go over all the LinkedIn Ads formats and share some tips on how to make the best use of them.

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How does the Linkedin Ads budget work?

The two types of budgets

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👉 Daily budget: Here, you decide how much you want to spend each day on a campaign. LinkedIn will use this budget on a regular basis throughout the day to show your ads. It's perfect for maintaining a continuous presence. You also have the option of setting a start and end date, for greater control.

💡LinkedIn tells us that it will not exceed a weekly budget of 7 times your daily budget

👉 Total budget: with this option, you set a global amount for the duration of your campaign. It will continue until this amount is fully spent. This is ideal if you have a specific amount that you don't want to exceed.

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💬 Here are some practical examples:

• If you choose a daily budget of €20, your ad will be displayed every day until this amount is reached.
• If you prefer a total budget of €200 for a two-week campaign, LinkedIn will spread your expenses over this period of time, never exceeding the total amount you set.

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Average expenses and costs

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To start a campaign on LinkedIn, there is a minimum amount of expenditure that must be respected. This can be a minimum per day (like €10 per day) or a minimum per auction (like €2 per click or per thousand impressions).

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Average costs can vary depending on a number of factors:

👉the audience you are targeting;

👉time of day;

👉competition for keywords;

👉advertising spaces.

By adjusting your daily or total budget and taking into account minimum costs, you can fine-tune your strategy to get the best possible results from your investment.

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Define your Linkedin budget according to your goals

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This is where things get interesting. Setting clear marketing goals is essential, as they serve as a compass for all your advertising decisions. Whether you're looking to increase brand awareness, generate leads, or encourage specific conversions, each goal directly influences how you should structure your budget on LinkedIn.

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Here are the various marketing goals and the associated typical budget allocations on LinkedIn:

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1. Increase brand awareness: Devote 20-30% of the total budget for this purpose. Investing in far-reaching campaigns allows you to reach a large audience and promote your brand.
2. Lead generation: Allocate 40-50% of the total budget to attract qualified prospects. Use ad formats and precise targeting to maximize the effectiveness of your campaigns.
3. Commitment: Dedicate 10-20% of the total budget to promote interactions with your content. This helps to strengthen the relationship with your audience and keep them interested.
4. Recruiting: Book 20-30% of the total budget to specifically target qualified professionals in your industry. It helps you attract the talent you need for your business.

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💬 Let's say you're running a tech startup and you need to recruit talent. You could put more of your budget into recruiting. That means using well-targeted LinkedIn ads to find pros with the skills you need. For example, you could send sponsored messages directly to their inbox to get their attention.

Now, if your main goal is to generate leads for a new product, you would put more money into campaigns that capture the interest and contact information of prospects. For this, LinkedIn Lead Gen Forms would be perfect for easily collecting the contact details of interested parties.

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The importance of bidding strategy and cost estimation

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After defining your marketing goals, the next step is to understand how the auction strategies and cost estimates on LinkedIn can impact your budget. This understanding will allow you to navigate the LinkedIn advertising ecosystem more effectively and maximize the impact of every dollar spent.

The bidding strategy you choose has a direct impact on the visibility of your ads and, therefore, on the success of your campaigns. LinkedIn offers several auction options, each with its own benefits based on your specific goals.

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💬 For example, you can opt for cost-per-click (CPC) auctions if your priority is to attract traffic to your site, or choose cost-per-thousand impressions (CPM) auctions if you want to maximize brand visibility. By adjusting your bidding strategy according to your goals, you can optimize your campaigns for the best possible results.

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Here are the different bidding strategies on LinkedIn:

👉 Cost per click (CPC): with this strategy, you pay for each click on your ad. It's ideal for lead generation campaigns. For example, if you launch a campaign to collect webinar registrations, you will only pay when a user clicks on your ad. Typical costs are between €2 and €5 per click.

👉 Cost per print (CPM): Here, you pay for a thousand impressions of your ad, with no guarantee of clicks. It's perfect for increasing brand awareness. For example, if you want to increase the visibility of a new product, you will pay for your ad to be seen by a large audience. The costs generally range between €0.75 and €2.50 per 1000 impressions.

👉 Cost per shipment (CPS): you pay for each InMail sent. It's ideal for personalized messages and recruiting. For example, if you're running a recruitment campaign that targets specific profiles, you'll only pay when you send an InMail. The costs range from €0.30 to €0.90 per shipment.

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The advantage of the Insight Tag in the Linkedin Ads campaign budget

How do I set up and use the Insight Tag?

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The LinkedIn Insight Tag is a small piece of JavaScript code that you add to your website to collect valuable data about your visitors. This data helps you track conversions, understand how users interact with your site, and most importantly, create targeted audiences for effective retargeting campaigns.

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Here's how to set up and use the LinkedIn Insight Tag:

1. Access the campaign manager: connect to LinkedIn Campaign Manager and go to the “Insight Tag” section.
2. Create the Insight Tag: select “Create an Insight Tag” and follow the instructions to generate the JavaScript code.
3. Install the code on your site: copy the Insight Tag code and paste it into the source code of your website, between the tags <head>and</head>.
4. Verify the implementation: Go back to the LinkedIn campaign manager and use the test tool to confirm that the tag is active and working properly.
5. Start retargeting: Use the data collected by the Insight Tag to create targeted audiences and launch personalized retargeting campaigns on LinkedIn.

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By following these steps, you can maximize the effectiveness of your advertising campaigns on LinkedIn thanks to accurate data and well-defined audiences.

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👉To go further, read our article for launch your Linkedin Ads ads.

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Optimizing your Linkedin campaign budget with the Insight Tag

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The LinkedIn Insight Tag has a big advantage: it helps you understand what visitors are doing on your site. For example, it can identify users who filled out a form, viewed a product page, or abandoned their shopping cart. With this information, you can create custom audiences and retarget them with ads on LinkedIn, enticing them to come back to your site to finish what they started.

This targeted method allows you to optimize your budget. Instead of wasting money on useless impressions, you're showing ads to people who are already interested in your products or services. It increases your chances of conversion and improves the return on each euro spent.

In addition to tracking conversions and creating audiences for retargeting, the Insight Tag also collects demographic data about your visitors. This gives you a better understanding of your audience, which allows you to refine your advertising campaigns even more.

Now that we've installed the LinkedIn Insight Tag and started collecting data on user interactions with our site, let's talk about budget.

You're probably wondering how to balance expenses between attracting new audiences and retargetting those who already know your brand. Here is the deal: it's about finding the right balance so that every euro counts.

On the one hand, there are visitors who have already shown interest in your site. With the Insight Tag, you know who they are and what they like. It is a golden opportunity to retarget them with ads on Linkedin personalized, encouraging them to come back and finalize what they started.

But be careful: you don't want to put all your eggs in one basket. Reaching new people is just as critical to continuing to expand your customer base. LinkedIn Ads is perfect for this, allowing you to target professionals according to specific criteria such as their position, industry or location.

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💬 For example, if you're launching a new product, you could allocate more of your budget to reach product managers in the tech sector.

Allocating your budget must therefore find a balance between these two strategies. It is a delicate dance between retaining those who already know you and seducing those who will want to know you.

With LinkedIn Ads, you have everything you need to adjust your spending based on the returns on investment you see, and to make sure your marketing budget is working as hard as possible for you.

If after reading this article, you would like to be supported by Linkedin Ads experts, here is a Top 5 best LinkedIn Ads agencies !

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