LinkedIn Ads Costs & ROI Calculator

Use our LinkedIn Ads costs & ROI calculator to estimate the return on your investment by calculating key metrics such as cost per lead, conversion rates, and potential profit.

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MetricValue
Number of Clicks0
Number of Leads0
Cost per Lead£0
Qualified Leads0
Cost per Qualified Lead£0
Profit£0

ROI Calculation Formula

The formulas used for calculations are as follows:

Stage 1: Number of Clicks = Ad Spend / Cost per Click

Stage 2: Number of Leads = Number of Clicks * Conversion Rate

Stage 3: Cost per Lead (CPL) = Ad Spend / Number of Leads

Stage 4: Qualified Leads = Number of Leads * Lead to Sale Conversion Rate

Stage 5: Cost per Qualified Lead = Ad Spend / Qualified Leads

Stage 6: Profit = (Qualified Leads * Average Revenue per Sale) – Ad Spend

 

Using Industry Averages to calculate LinkedIn CPC (Cost-Per-Click)

The industry average Cost-Per-Click (CPC) for LinkedIn ads in the B2B sector typically ranges between $5.58 and $12. The exact cost can vary based on several factors such as the specific ad format, the target audience, and the competition within the industry. For example, targeting senior decision-makers tends to be more expensive, with an average CPC of around $6.40, whereas targeting junior employees can be lower, averaging around $4.40.

To break it down further, the average CPC for LinkedIn Sponsored Content is reported to be approximately $8 to $12. However, some sources suggest a lower average of $5.58, especially for broader targeting.

It’s essential to consider that LinkedIn ads generally command higher CPCs compared to other platforms like Facebook and Google Ads. Still, they also tend to deliver higher-quality leads and better conversion rates for B2B marketing efforts.

For more detailed and specific benchmarking based on your particular objectives and target audience, utilising LinkedIn’s campaign forecasting tools is recommended to get the most accurate and relevant cost estimates.

 

Using Industry Averages to Calculate Lead Gen Conversion Rates

In 2024, the average conversion rate for converting a lead to a sale on LinkedIn for B2B companies varies significantly across different industries. Typically, conversion rates range from 1.5% to 7.4%, depending on the specific industry and sales cycle.

For instance, industries such as IT & Managed Services have a lower average conversion rate of about 1.5%, while sectors like Legal Services can see conversion rates as high as 7.4%. Overall, the average conversion rate for B2B sales through LinkedIn and other channels tends to be around 2.23% to 3.6%, with some high-performing sectors reaching rates significantly above the average.

To optimize these conversion rates, businesses often focus on improving the quality of their leads, enhancing their targeting strategies, and refining their sales processes. Leveraging LinkedIn’s advanced targeting options and maintaining high engagement with prospects can also contribute to better conversion rates.

For more specific benchmarking and tailored strategies, it is recommended to use LinkedIn’s campaign analytics tools and industry reports to gain insights into performance and optimize campaigns accordingly here.

 

Using Industry Averages to Calculate Lead-to-Sale Conversion Rates

In 2024, the opportunity to close conversion rates for B2B sales on LinkedIn can vary widely, typically ranging between 10% and 28%. This means that out of all the opportunities generated through LinkedIn, approximately 10% to 28% will convert into actual sales.

For more detailed insights:

  • Opportunity to Close Rates: On LinkedIn, the chance to close conversion rates can vary widely. On average, it ranges between 10% and 28% for B2B sales.
  • Overall Conversion Metrics: These rates depend on various factors such as the industry, quality of leads, and the effectiveness of the sales process.

Focusing on high-quality lead generation, effective engagement strategies, and refining sales approaches is essential to optimise these rates. Utilising LinkedIn’s analytics tools can provide more accurate and actionable insights tailored to specific business needs.

For further information, you can refer to the full report on Gradient Works’ benchmarks.

 

Tips for running effective LinkedIn Advertising Campaigns

Running successful B2B LinkedIn ad campaigns requires a strategic approach that leverages various tools and techniques to engage and convert potential leads effectively. Here are some tips to help you maximise your LinkedIn ad campaigns:

  1. Use Whitepapers and Webinars to Generate Leads:
    • Offering valuable content such as whitepapers and webinars can attract high-quality leads. These resources provide in-depth information and insights that appeal to B2B audiences looking to solve specific problems or gain industry knowledge. Promote these assets through sponsored content and lead generation forms on LinkedIn.
  2. Prepare Your Sales Team:
    • Ensure your sales team is prepared to engage with leads generated from your LinkedIn campaigns. Prompt and effective communication is crucial. The sales team should be well-versed in the content you are promoting and able to continue the conversation started by the ad, addressing the needs and questions of the leads.
  3. Address All Phases of the Funnel:
    • Your LinkedIn ad strategy should target prospects at every stage of the sales funnel. Use awareness campaigns to introduce your brand, consideration campaigns to educate potential customers about your solutions, and conversion campaigns to drive action. Tailor your messaging and offers to meet the needs of your audience at each stage.
  4. Retargeting Users:
    • Implement retargeting strategies to re-engage users who have interacted with your ads but haven’t converted. This can be done by creating custom audiences based on website visits, video views, or engagement with previous ads. Retargeting helps keep your brand top-of-mind and encourages prospects to take the next step.
  5. Use Predictive and Matched Audiences:
    • Leverage LinkedIn’s predictive and matched audience features to refine your targeting. Predictive audiences use machine learning to identify and target users who are more likely to convert based on their behaviour and attributes. Matched audiences allow you to upload lists of company names or targets based on specific criteria like the percentage of a video viewed, enabling highly targeted campaigns.

By incorporating these strategies into your LinkedIn ad campaigns, you can effectively reach and convert a B2B audience, driving growth and achieving your marketing goals.

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