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How do LinkedIn ads work? A complete guide to paid posts

Looking to reach decision-makers and grow your B2B presence? LinkedIn advertising might be exactly what your business needs. With its professional network and powerful targeting options, LinkedIn offers unique opportunities to get your message in front of the right people.

17 January 2025
Richard Hatfield Managing Director

This is the fifth blog post in our Back to Basics series, where we break down the jargon, answer the important questions and give you an insight into the marketing tools that could help to improve your business.

What is a paid LinkedIn post?

A paid LinkedIn post, also known as “Sponsored Content”, is a form of advertising that appears in the LinkedIn feed of your target audience. These posts look similar to regular LinkedIn updates but are marked as "Promoted" and can reach a much wider audience than organic posts.

Types of LinkedIn ads

Sponsored content:

These are feed-based ads that appear naturally in your target audience's LinkedIn feed. They come in three flavours, each offering unique advantages for B2B marketers:

Single image ads

  • Perfect for driving brand awareness with eye-catching visuals

  • Typically achieve higher click-through rates (around 0.56%) compared to other formats

  • Ideal for straightforward messaging like product launches or service announcements

  • The most cost-effective option for testing new markets or messages.

Carousel ads

  • Tell a more complete story with up to 10 customisable cards

  • Excellent for showcasing multiple products, features, or client testimonials

  • Interactive format encourages higher engagement through swiping

  • Each card can have its own call-to-action, perfect for different audience segments.

Video ads

  • Generate up to 5 times more engagement than static content

  • Brilliant for demonstrating complex products or services

  • Create stronger emotional connections with your audience

  • Particularly effective for thought leadership content and product demonstrations.

Sponsored InMail (message ads)

If you want to get directly into your prospects' LinkedIn inbox, Sponsored InMail lets you send personalised messages to specific LinkedIn members. It's perfect for event invitations, webinar registrations or direct outreach campaigns.

  • Achieves direct personal connection by landing right in your prospect's LinkedIn inbox

  • Ideal for high-value conversions such as:

    • Event registrations (perfect for webinars and industry conferences)

    • Direct consultation bookings

    • Premium content downloads like whitepapers

  • Only delivers when prospects are active on LinkedIn, ensuring better engagement

  • Allows hyper-personalisation using LinkedIn's professional data

  • Particularly effective for senior decision-maker outreach in the UK market.

Text ads

These simple but effective ads appear in the right column of LinkedIn's desktop site. They're great for testing new markets, working with smaller budgets and building brand awareness

  • Cost-effective entry point for LinkedIn advertising

  • Perfect for:

    • Testing new market segments

    • Working with smaller marketing budgets (starting from £500)

    • Building initial brand visibility

  • Desktop-focused placement ensures visibility during business hours

  • Quick to create and easy to optimise

  • Excellent for local UK market targeting with a specific geographic focus.

Dynamic ads

These automatically personalise themselves using LinkedIn profile data to create more relevant messaging.

  • Automatically personalises content using LinkedIn profile data, creating highly relevant messaging

  • Drives stronger engagement through personalisation:

    • Uses profile photos and names to grab attention

    • Adapts messaging based on job titles and industry

    • Updates automatically based on profile changes

  • Particularly effective for:

    • Professional recruitment campaigns

    • Growing your company page followers

    • Promoting industry-specific content to relevant sectors.

It is important to remember that each of these ad types can be powerful when matched with the right objective.

For example, if you're a UK tech company launching a new software solution, you could follow a process like this:

  • Start with single Image Ads for awareness

  • Use Carousel Ads to showcase your features

  • Follow up with InMail for demos

  • Then use Dynamic Ads for ongoing engagement.

Making LinkedIn Ads work for your business

When setting up your LinkedIn advertising campaign, there are five key elements to consider:

1. Campaign objective

Start by choosing your campaign objective:

  • Awareness campaigns: Brilliant for new products or services

    • Example: Launching a new HR software solution in the UK market

    • Focus on reach and impressions

    • Use eye-catching visuals and compelling headlines

  • Consideration campaigns: Perfect for educating your audience

    • Example: Promoting a whitepaper on national industry trends

    • Drive website visits and engagement

    • Share valuable insights and expertise

  • Conversion campaigns: Drive specific actions

    • Example: Webinar registrations or consultation bookings

    • Use strong calls-to-action

    • Include testimonials from UK businesses.

2. Audience targeting

LinkedIn's targeting is incredibly precise, offering numerous opportunities to reach your ideal audience. Now, let's explore how each targeting option can benefit your campaigns:

  • Job titles

    • Target specific decision-makers with pinpoint accuracy

    • Example: "Managing Director", "Finance Director", "Head of Digital"

    • Perfect for reaching the exact professionals who make purchasing decisions

    • Reduces wasted ad spend by making sure your message reaches the right people.

  • Company size

    • From SMEs to enterprise (1-10, 11-50, 51-200, etc.)

    • Tailor your messaging to organisations of different scales

    • Particularly useful for:

      • Enterprise software companies targeting larger businesses

      • Professional services firms focusing on SMEs

      • Startups looking to connect with scale-ups.

  • Industry

    • Focus on specific sectors like Financial Services, Manufacturing, or Technology

    • Create industry-specific content that resonates with your audience

    • Enhance relevance by speaking directly to sector-specific challenges

    • Ideal for companies offering specialist solutions.

  • Skills

    • Target people with specific expertise like "Digital Marketing" or "Business Development"

    • Connect with professionals based on their actual capabilities

    • Particularly effective for:

      • Professional training providers

      • Software companies targeting users with specific technical skills

      • Recruitment campaigns.

  • Location

    • Target specific UK regions, counties, or cities

    • Perfect for:

      • Regional business development

      • Local event promotion

      • Territory-specific campaigns

  • Combine with other targeting options for hyper-local precision.

The power of LinkedIn’s targeting lies in the combination of these options to create highly focused campaigns.

For example, trying to target Finance Directors in manufacturing companies with 50-200 employees in Yorkshire. This will increase the chances your message reaches exactly who needs to see it.

3. Ad creation

Your content needs to stand out in a professional feed - and for good reason. On LinkedIn, high-quality content not only makes you look professional and polished but directly impacts your bottom line

Professional content consistently delivers up to twice the conversion rates compared to basic ads, and well-crafted messaging can boost purchase intent by 33%. When you are investing in LinkedIn advertising, every element of your content needs to work hard:

  • Headlines should be clear, benefit-focused, and professional

    • Good: "Boost Your Team's Productivity by 45%"

    • Better: "How Yorkshire Manufacturers Are Increasing Efficiency"

    • Best results come from headlines under 50 characters that speak directly to your audience

  • Images should be professional, high-quality, and relevant

    • Use charts and graphs for data-focused content (can increase engagement by 98%)

    • Show real UK workplace settings

    • Include your branding elements consistently.

  • And the copy must be concise, value-driven, and action-oriented

    • Address pain points directly

    • Include statistics and proof points

    • End with clear next steps

    • And speak in a tone of voice and writing style that resonates with your target market.

4 out of 5 LinkedIn members influence purchasing decisions in their organisations.

Remember, you're speaking to decision-makers who drive business choices - 4 out of 5 LinkedIn members influence purchasing decisions in their organisations. Therefore, your content needs to reflect the professional standard they expect.

4. Budgeting and campaign management

Make your budget work harder with smart campaign management:

  • Start with a test budget (£500-£1,000) to gather data

  • Monitor engagement metrics daily

  • Adjust bids based on performance

  • Test different audience segments

  • Consider UK business hours for campaign scheduling.

5. Performance tracking

Use LinkedIn's analytics to optimise your campaigns by tracking these fundamental metrics - each tells an important part of your advertising performance:

Track engagement rates by content type

Understanding how your audience interacts with different content formats is key for a successful campaign. With industry benchmarks showing 0.44%-0.65% CTR for sponsored content, monitoring these rates helps you identify which messages truly resonate with your target audience.

Monitor cost per lead

Knowing your cost per lead is essential for measuring campaign efficiency and ROI. With UK and European leads averaging £95-£100, this metric helps you understand if your investment is delivering value and where you might need to optimise your approach.

Analyse audience demographics

Your campaigns may get engagement, but this alone will not confirm if you are reaching the right decision-makers. Demographic analysis helps confirm if your message is reaching the key decision-makers in your target organisations.

Measure against industry benchmarks

Context is everything in B2B marketing. By comparing your performance against industry standards you'll know whether your campaigns are truly competitive in your sector.

Review performance by UK region

Finally, different regions often yield different results, and understanding these variations is important for national campaigns. This insight helps you allocate your budget more effectively and tailor your messaging to resonate with specific regional audiences.

Why LinkedIn ads work for businesses

LinkedIn advertising is particularly effective for:

  • B2B marketing

  • Reaching decision-makers

  • Recruiting top talent locally, nationally and globally

  • Establishing yourself as an industry thought leader

We’ve also found that LinkedIn's professional user base makes it especially valuable for:

  • Professional services firms

  • Technology companies

  • Manufacturing businesses

  • Financial services providers

  • Recruitment agencies

  • Among much more.

How can Applied Digital Marketing help with my LinkedIn advertising?

We specialise in creating LinkedIn advertising campaigns that connect with decision-makers and drive real business results. Our expertise in B2B digital marketing means we know exactly how to make your message stand out in a professional feed.

Want to explore how LinkedIn advertising could work for your business? We're always up for a chat:

Drop us a line at hello@applieddigital.co.uk

Or give us a ring on 01484 302010.

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