LinkedIn Ads: Why Do They Matter?

Founded in 2002 as a networking site for career-minded professionals, LinkedIn has grown over the years to become one of the world’s most popular and widely used social media platforms. Decision-makers, with twice the buying power of average audiences, have flocked to LinkedIn to connect with peers, discover new opportunities, and advance their careers.

With over 875 million registered users¹, including 134.5 million active daily users², LinkedIn has become an essential platform for businesses to reach their target audience. This is where LinkedIn ads come in, giving businesses a unique opportunity to advertise to a highly engaged and professional audience.

But what exactly are LinkedIn ads, and why do they matter? This article will answer these questions and explore the benefits of using LinkedIn ads.

So, keep reading to learn more!

What Are LinkedIn Ads?

As the name suggests, LinkedIn ads are paid advertisements shared on LinkedIn. These ads are designed to appear in front of LinkedIn users who match specific targeting criteria, such as industry, location, job title, company size, and more.

Based on how and where they appear on LinkedIn, these powerful ads can take several forms, including:

Sponsored Content

Also known as native ads, these are in-feed ads that look like standard posts except that they are labeled as “sponsored.”

With sponsored content, businesses can promote their brand, products, or services to their target audience using carousel ads, single image ads or video ads.

Sponsored Messaging

These ads appear as messages in LinkedIn users’ inboxes. With an open rate of 38%³, these ads are incredibly effective compared to other forms of digital advertising, including email marketing, with an open rate of only 21.5%⁴.

Text Ads

Similar to Facebook’s sidebar ads, these ads show up on the top and right-hand side of LinkedIn pages. They appear as a single image (usually a brand logo) with a short text (advertising copy) and a clickable call-to-action (CTA).

Dynamic Ads

Like text ads, dynamic ads also appear on the right-hand side of LinkedIn pages. However, they are more personalized, featuring the user’s profile picture and name, along with a customized message based on their LinkedIn activity and interests.

Why Do LinkedIn Ads Matter?

1.   Provide Precise Targeting Capabilities

Compared to other social media platforms, LinkedIn offers more precise targeting capabilities. You can target users by job title, industry, company size, location, and even educational background or interests.

This level of targeting allows businesses to reach the right people at the right time and get the most out of their advertising budget.

2.   Drive High-Quality Leads

Thanks to LinkedIn Lead Gen Forms, businesses can quickly gather and convert leads into customers.

These forms appear directly within the ad and allow users to input their information, such as email address and phone number, in just a few clicks. This makes it easier to collect high-quality, robust leads from LinkedIn’s hundreds of millions of users.

3.   Increases Conversion Rates

LinkedIn ads drive higher conversion rates compared to other forms of digital advertising. In fact, a recent study found that LinkedIn ads convert users to leads at a 6.1% conversion rate⁵, which is very impressive compared to other ad campaigns, including Google search ads which convert only at a 2.85% rate⁶.

This is largely due to the targeting capabilities that allow businesses to reach relevant leads, who are more likely to convert.

4.   Access to a Professional and Engaged Audience

LinkedIn’s large pool of professionals, including 180 million senior-level influencers, 63 million decision-makers, and 10 million C-level executives⁷, make it an ideal platform for businesses looking to connect with a professional and engaged audience.

By utilizing LinkedIn ads, businesses can promote their brand, products, or services to this highly valuable audience, which has twice the buying power of the average audience. This means that businesses can get their message in front of the right people, who are more likely to engage with their ads and ultimately convert into customers.

5.   Ability to Measure and Optimize Campaign Performance

One great benefit of using LinkedIn ads is the ability to measure and optimize campaign performance. Businesses can track key metrics, such as clicks, impressions, conversions, and more, to determine the effectiveness of their ads and make adjustments to improve their performance.

LinkedIn’s Campaign Manager tool makes it easy to monitor and analyze ad campaigns, providing businesses with valuable insights into their target audience and ad performance.

By using this data to refine their targeting and ad content, businesses can improve their ROI and achieve better results from their advertising efforts on LinkedIn.

Final Thoughts

LinkedIn ads are an effective advertising option for businesses looking to reach a professional audience and generate high-quality leads. By following best practices and creating ads that resonate with the target audience, businesses can get the most out of their ad campaigns and drive conversions.

If you’re looking to take advantage of LinkedIn ads for your business, WSI can help! As a Phoenix social media marketing company, we specialize in creating and managing LinkedIn ad campaigns that deliver results. Our team of experts can help you identify your target audience, create compelling ad content, and optimize your social media ads marketing campaigns for maximum impact.

So, get in touch with us today and let us help you succeed on LinkedIn!