November 17, 2023

Are LinkedIn Ads Effective?

LinkedIn ads have become an essential part of many businesses’ marketing strategy, allowing companies to reach their specific target audience more effectively. With numerous options available, such as follower ads, video ads, spotlight ads, sponsored content, and message ads, advertising on LinkedIn can help you achieve your goals in a targeted manner.

While the effectiveness of LinkedIn ads ultimately depends on your strategy and execution, there is no denying that the platform has substantial potential to make a difference in your brand’s visibility and perceived value. By leveraging the attributes of different types of LinkedIn ads and tailoring them to your specific audience, you have the opportunity to create a successful, impactful campaign.

Research has shown that LinkedIn generates more quality leads than other social platforms, thanks to the network of influential decision-makers that can be found on the site. Having surpassed $5 billion in revenue in 2022, and with projections set on capturing almost 50% of all display ad revenue by 2024, it is evident that the platform is growing in popularity among marketers and advertisers alike.

Effectiveness of LinkedIn Ads

1. Audience and Targeting

LinkedIn is known for its professional audience, making it an attractive platform for advertisers to reach professionals in various industries. One of the key advantages of LinkedIn ads is its precise targeting options. You can target your LinkedIn ads based on job titles, seniority, company size, and even skills or interests. This way, you can ensure you are reaching the right audience and optimising your ad spend.

Moreover, LinkedIn allows you to create matched audiences by using your customer data, helping you to target prospects similar to your existing customers. By engaging with this well-defined audience, you increase the chances of higher conversions and better engagement with your ads.

2. Advertising Formats

LinkedIn offers a wide range of ad formats that cater to different objectives, from brand awareness to lead generation. Some popular formats include:

  • Sponsored Content: These are native ads that appear directly in the LinkedIn feed. It can be in the form of single image ads, carousel ads, or video ads. Sponsored content is ideal for promoting your brand, content, or events to a wider audience.
  • Text Ads: These ads appear at the top or the side of the LinkedIn feed and are excellent for driving website traffic or generating leads.
  • Sponsored Messaging: This ad format enables you to send personalised messages directly to the LinkedIn member’s inbox, including Message Ads and Conversation Ads which help to engage prospects in a more interactive manner.

Each ad format offers different benefits, so choose the one that aligns best with your objectives and target audience preferences.

3. Cost and ROI

One concern for advertisers is that LinkedIn ads generally have higher cost per click (CPC) compared to other social media platforms. However, the targeting capabilities and professional user base may increase the likelihood of generating qualified leads and conversions. Thus, higher costs might be offset by the potential return on investment (ROI).

To effectively manage your budget, LinkedIn offers objective-based advertising, allowing you to optimise your ad spend based on the specific goals of your campaigns. Additionally, using conversion tracking and the LinkedIn Insight Tag, you can measure the true impact of your campaigns, and optimise them automatically with reporting and analytics provided by Campaign Manager.

In conclusion, the effectiveness of LinkedIn ads highly depends on your ads, objectives, and targeting options. By strategically utilising LinkedIn’s advertising features and best practices, you can successfully reach and engage your desired professional audience.


In the end, it’s quite apparent that LinkedIn ads can be effective for your business. They offer a 6.1% conversion rate, which is higher than other platforms such as Google search. With options like Sponsored Content, it becomes easier to create highly visible ads with eye-catching visuals and compelling headlines, making a difference in reaching your desired audience.

When using the platform, it’s crucial to follow LinkedIn ad best practices, such as keeping headlines under 150 characters, limiting descriptive copy to 70 characters or less, and including a clear, concise, attention-grabbing CTA in the form of a text button. By doing so, you increase the chances of your ads being successful and reaching a wider audience.

Moreover, the platform allows for effective audience segmentation and tracking conversion actions if you have over 300 users per month visiting your website. With tools like Sponsored Messaging, LinkedIn ads can yield impressive conversion rates due to their targeted nature, giving you an opportunity to engage with contacts directly.

In summary, while there are pros and cons to using LinkedIn ads, this platform has proven to be a powerful advertising tool when used strategically. By following best practices and tailoring your ads to the needs of your audience, you can unlock the potential of LinkedIn ads to boost your business. Keep these points in mind, and you’ll be well on your way to leveraging the capabilities of LinkedIn advertising.

Frequently Asked Questions

How do LinkedIn ad formats perform in terms of effectiveness?

Different ad formats on LinkedIn come with various features, and their effectiveness depends on how well you use them. For instance, Sponsored Content performs well by capturing users’ attention through visuals. Carousel ads showcase multiple images or videos and can effectively convey complex ideas, while Sponsored InMail allows a more personal approach increasing engagement. Ultimately, the significance of these ad formats depends on your marketing objectives and your target audience.

Which LinkedIn campaigns have a higher success rate?

Success rates on LinkedIn campaigns vary based on your industry, targeting strategy, and ad creatives. However, some campaigns are more likely to generate positive results, like Sponsored Content campaigns that aim at increasing brand awareness and lead generation. In contrast, Sponsored InMail could help you build long-lasting relationships with potential customers. To achieve the highest success rate, ensure your campaign objectives align with your business goals and your target audience is carefully defined.

What are the pros and cons of using LinkedIn text and video ads?

LinkedIn text ads provide a simple, cost-effective way to target users based on demographics, skills, and interests. Their main drawback is their limited visibility on the platform compared to other ad formats. Video ads, on the other hand, grab users’ attention with compelling visuals and dynamic content. However, they can be more challenging to create and might require higher budgets. Ensure you weigh the pros and cons of each format before making an investment.

How does the size of a LinkedIn ad impact its effectiveness?

The size of your LinkedIn ad, especially the visual elements, plays a crucial role in capturing users’ attention and encouraging engagement. For instance, large, high-quality images in Sponsored Content can increase click-through rates. However, it’s essential not to overwhelm your target audience with excessively large or cluttered visuals. Ultimately, finding the right balance between ad size and relevance is crucial to maintaining its effectiveness.

Is it worth investing in LinkedIn ads for businesses?

Investing in LinkedIn ads can be highly effective for businesses, as the platform is known to generate up to 277% more leads than Facebook and Twitter. With a professional audience consisting of decision-makers, LinkedIn offers a unique opportunity to target niche markets and increase conversions. However, ensure you tailor your campaigns to your target audience and objectives, considering ad formats and content quality to achieve your desired results.

What can you learn from a LinkedIn Ads course to improve ad performance?

Taking a LinkedIn Ads course can help you learn various tips and strategies to improve ad performance. Such courses usually cover topics like:

  • Identifying the right ad format for your objectives
  • Targeting and retargeting techniques
  • Effectively planning your ad budget
  • Creating high-converting creatives
  • Analysing and optimising your ad campaigns

By understanding and implementing these tactics, you can greatly enhance your ad performance and successfully achieve your business goals.

If, for any reason, taking a course does not work for you, hire a professional Linked advertising agency.

About Shirish Agarwal

Shirish Agarwal is the founder of Flow20 and looks after the PPC and SEO side of things. Shirish also regularly contributes to leading digital marketing publications such as Hubspot, SEMRush, Wordstream and Outbrain. Connect with him on LinkedIn.