The bidding process on LinkedIn is the same for both sponsored updates and ads. You control the cost of your ad campaigns in two ways:
- Setting Bids — the maximum amount you want to pay for each individual click or for every 1,000 impressions
- Setting the Budgets — the maximum total amount you want to spend per day
Cost Per Click (CPC):
This option is used to drive people to your website or LinkedIn Page. You specify the maximum amount you are willing to pay for each click. LinkedIn offers a “Suggested bid range” and the “Minimum Bid” required for the ad to run. The suggested bid range will change depending on your targeted audience.
Cost Per 1,000 Impressions (CPM):
This option is used to drive brand awareness. You pay a set cost for each 1,000 times your ad is shown, no matter how many clicks you receive. Again, LinkedIn offers a “Suggested bid range” and the “Minimum Bid” required for the ad to run. The minimum bid for sponsored updates will vary depending on your targeted audience.
The higher you bid, the more likely you are to receive impressions and clicks. That’s because you’re competing with other advertisers for the placement.
What’s your budget for this campaign?
LinkedIn requires a daily budget for the ad to run and the option to run the ad indefinitely or until a certain date. The minimum daily budget for sponsored updates is $10.
Note: Your ad isn’t guaranteed to spend your daily budget on each day. The number of impressions and clicks your ad receives depends on a number of factors, including the competitiveness of the ads in the system and the size of your target audience.
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