LinkedIn Ads Benchmarks: CPM, CPC, CTR etc. (2023)

To make the most out of Linkedin advertising, you have to understand the benchmarks that can help guide your decisions in setting up and optimising your Linkedin ads.

LinkedIn should provide these performance metrics themselves, however they currently do not. As a result, unbiased third parties have done their best to aggregate data from all the LinkedIn advertising campaigns they manage as benchmarks.

So to help you evaluate your campaigns, we’ve compiled our metrics, collected from Linkedin Sales Navigator and from our experience looking at campaigns across different formats, industries & geographies.

Jump ahead to:

Considerations when using these Linkedin Ads benchmarks

1. Your target audience’s level of experience, industry, geographic area, etc., may affect the KPIs’ values.

2. At the start of 2020, COVID-19 caused significant behavioral changes. Metrics are predicted to level off after the pandemic. Therefore you may view any data collected before that year as likely to be abnormal.

3. Due to iOS 14.5’s removal of crucial data, CPMs have risen, and the performance of some ads has suffered. It is because you may have to pay more to reach the same audience, which does not indicate that social media advertising is ineffective or a good investment.

4. Using campaign data from the past, it is essential to update your benchmarks list regularly. While the “norm” for one company may never be attainable for another, that doesn’t negate the campaign’s effectiveness. A campaign’s performance can be measured most accurately by the extent to which it yields a positive return on investment or accomplishes predetermined marketing objectives.

Let’s examine the current average benchmarks for three essential indicators in LinkedIn Ads:

CTR (Click-Through Rate): 0.29%
CPM (Cost Per Thousand): $27.03
CPC (Cost Per Click): $8.95

Benchmarks for Linkedin Ads’ Click-Through Rates

Clickthrough rate {CTR) is the ratio of people that click through the ad over the total number of impressions.

The Sponsored Content click-through rates typically range from 0.44% to 0.65% worldwide. The answer to this question varies widely between nations and areas. The average CTR is typically greater in developing countries than in industrialised ones. It varies marginally between ad formats but is generally highest for display ads.

1. Sponsored Content

Sponsored content on LinkedIn is a type of advertising format that allows businesses to promote their content to a targeted audience of LinkedIn users. Sponsored content can take various forms, including articles, videos, images, and carousel ads. These ads appear directly in the LinkedIn feed of the targeted audience, just like regular posts, and can be identified by the “Sponsored” label in the top left corner.

Sponsored content on LinkedIn allows businesses to promote their thought leadership, share industry insights, and showcase their products or services in a more engaging and informative way. It can be used to drive website traffic, generate leads, and increase brand awareness on the platform.

Sponsored posts, Group posts, and Influencer posts are the three categories of LinkedIn advertising that each have a unique CTR.

Sponsored Content (One Image): 0.54 percent
Sponsored Content (Carousel): 0.38 percent
Sponsored Video Content: 0.39 percent

2. Text & Dynamic Ads

Text advertisements on LinkedIn are a type of ad format that allows businesses to promote their products or services through short and concise text-based ads. These ads typically consist of a headline, a short description, and a call-to-action (CTA) button. Unlike other ad formats, text ads on LinkedIn do not contain images or videos, making them more suitable for promoting text-heavy content, such as whitepapers, case studies, and blog posts.

Text ads on LinkedIn can be targeted to specific audiences based on criteria such as job title, company size, industry, and location, which can help businesses reach their target audience more effectively. Additionally, text ads on LinkedIn are typically displayed in the right-hand column of the desktop interface, making them highly visible to users who are browsing the platform.

Dynamic ads are created using pre-designed templates and can feature a range of content, including images, headlines, descriptions, and calls-to-action. The content is automatically populated with the user’s profile information, which makes the ad more relevant and engaging for the user.

We find that text & dynamic ads perform best for awareness campaigns that attract people to your page. Conversion & bottom-of-funnel type campaigns tend to not perform as well.

Dynamic Ads: 0.07%
Text Ads: 0.025%

3. InMail Messages

Sponsored messaging campaigns on LinkedIn are a type of advertising format that allows businesses to deliver personalized messages to their target audience on the platform. These messages are sent directly to the LinkedIn inboxes of the selected audience and can be customised to include a personalised greeting, a call-to-action, and a link to the business’s website or landing page.

Sponsored messaging campaigns on LinkedIn can be used to promote events, webinars, product launches, or any other marketing initiative that requires a more personalised approach. They can also be used to nurture leads and guide prospects through the sales funnel by providing them with relevant information and resources at each stage of their journey.

Promotional Messages: 2.8%, with 25% open rates

So Why is CTR Important?

CTR is important for LinkedIn ads for several reasons:

Cost-effectiveness: LinkedIn ads are charged on a cost-per-click (CPC) basis, which means that businesses only pay when someone clicks on their ad. A high CTR can help reduce the cost per click and make the ad campaign more cost-effective.
Relevance: A high CTR indicates that the ad is relevant and resonating with the target audience. This can help businesses refine their targeting and messaging to better connect with their audience.
Ad performance: CTR can be a useful indicator of ad performance and can help businesses optimize their ad campaigns for better results. A low CTR may indicate that the ad needs to be revised, such as changing the ad copy or image.

Overall, CTR is an important metric for measuring the success of LinkedIn ads and can help businesses optimize their ad campaigns for better results. By focusing on increasing CTR, businesses can improve the effectiveness of their ad campaigns, reduce costs, and generate more leads and conversions on the platform.

CTR by Function

Function-specific benchmarks are provided below.

0.52% on Product Management
0.59% on Sales
0.60% on Media and Communications
0.50% on Operations
0.60% on Informational Technology
0.58% on Marketing
0.57% on Finance
0.60% on Human Resources
0.59% on Engineering
0.62% on Business Development
0.62% on Education
0.58% on Accounting

CTR by Region

Latin America: 0.72%
EMEA: 0.58%
Asia-Pacific: 0.82%
North America: 0.47%

CTR by Job Seniority

These are the click-through-rate norms for increasingly authoritative sponsored content.

Average CTR for senior decision-makers around the world: 0.52%
Junior employees worldwide have an average CTR of 0.61%.

Those with managerial responsibilities, for example, vice presidents, directors, seniors, owners, and partners, are considered senior decision-makers.

CTR by Industry

The following are some standard benchmarks by industry

Transportation & Logistics: 0.67%
Corporate Services: 0.5%
Public Administration: 0.46%
Consumer Goods: 0.6%
Media & Communication: 0.42%
Retail: 0.8%
Healthcare: 0.58%
Manufacturing: 0.49%
Education: 0.42%
Hardware & Networking: 0.40%
Software & Internet: 0.39%
Finance Services, Insurance & Banking: 0.49%

Benchmarks for Cost Per Click (CPC)

Cost-per-click varies depending on ad structure and purpose. You have little to no say on your CPCs. LinkedIn uses an auction system to set prices based on supply and demand. So here’s a quick tip.

A change in audience targeting could result in a decrease in cost per click. Expand your scope and experiment with new methods of targeting.

Across the board, the average cost per click on Linkedin is $5.58. Here are additional CPC standards that could be helpful:

Junior employees: $4.42
Senior decision-makers: $6.43

In addition, here are some resources you may utilise to find industry-specific CPC averages:

Product Management: $7.32
Sales: $5.42
Media and Communications: $5.63
Operations: $5.75
Information Technology: $7.95
Marketing: $6.83
Finance: $6.92
Human Resources: $6.04
Education: $4.92
Engineering: $5.14
Accounting: $5.01
Business Development: $6.31

Companies use Linkedin to advertise to people in these common professions. Then, using the campaign manager’s forecasting function, you can receive a more precise CPC estimate for your region/audience.

Benchmarks for Cost Per Impression (CPM)?

This can be estimated by dividing your advertising budget by the predicted average number of impressions. For example, suppose you want to spend $10,000 on advertising and expect 150,000 – 200,000 people to see your ads. Ten thousand dollars / 175 people = (A middle ground between 150,000 – 200,000 impressions). The resulting estimated CPM is $57.

Keep in mind that 1,000 impressions equals $1.00 CPM. So, to determine the CPM, divide the whole number of expected impressions, say 175,000, by 1,000.

The average cost per thousand impressions (CPM) on LinkedIn is $33.80.

If people will launch a brand awareness campaign and CPM bidding is the only choice, they’ll occasionally employ this.

Other statistics indicate that CPM on Linkedin is approximately $8.50 per thousand views. That’s true only if your intended audience is global. This statistic is inaccurate because you won’t be aiming at the entire global population.

For business-to-business interactions, advertisers tend to be picky about who they target. They wouldn’t dream of attacking an entire nation, for instance. Alternatively, they may focus on specific businesses or occupations (among other filters).

The CPM consequently rises sharply because of this.

What is The Benchmark for The Cost Per Lead or CPL?

The amount that an advertiser incurs to get a lead is known as the “cost per lead.” This measure is crucial to your success if you’re trying to run lead generation campaigns.

Unfortunately, there is no standard to which one can aspire. One’s past performance is the only and most reliable indicator. In addition, the price per license (CPL) can be anywhere from $15 to $350.

Advertising incentives, audience characteristics, and originality play significant roles in this enormous range. Your lead-focused initiatives live or die by the cost per lead (CPL) measure. So, keep a close eye on it.

Note that this metric will only be relevant if you utilize Lead Gen forms in your Ads. Consider the metric “Key Results” or “Cost per result” if you’re interested in website conversions.

Cost Per Lead by Region

You can see the average cost per lead for all the regional campaigns we’re promoting. This information is based on a six-month study of the effects of a multi-account advertising campaign that spent millions of dollars at various geographic locations. This is a reasonable estimate at this level of advertising investment.

Latin America: $60
EMEA: $120
Asia-Pacific: $80
North America: $230

To restate, CPL is highly variable due to factors like the targeting, offer, and prominence of the company’s brand.

Cost Per Lead by Industry

These are some of the statistics for cost per lead when breaking down ad spending of $1M across different industries.

Corporate Services: $60
Transportation & Logistics: $130
Consumer Goods: $89
Public Administration: $85
Retail: $80
Media & Communications: $65
Manufacturing: $100
Healthcare: $125
Hardware & Networking: $150
Education: $64
Finance: $100
Software & IT: $125

What is the Average Rate of Lead Generation Form Completion?

Lead Generation Forms

Lead gen forms on LinkedIn ads are a type of advertising format that allows businesses to capture lead information directly within the LinkedIn platform. These forms are designed to streamline the lead generation process by pre-filling a user’s contact information, such as their name, email, job title, and company name, based on their LinkedIn profile information. This makes it easy for users to submit their information and for businesses to collect high-quality leads on the platform.

When a user clicks on a LinkedIn ad that includes a lead gen form, the form will appear directly within the ad, without requiring the user to navigate to a separate landing page. This can help reduce friction in the lead generation process and increase the likelihood of users submitting their information.

Once a user submits their information through a lead gen form, the business can access the lead information directly within the LinkedIn Campaign Manager. They can then use this information to follow up with the lead, such as through email or phone, to continue the sales process.

LinkedIn’s Lead Gen Forms enhances user experience because the form fields are usually pre-populated with user profile data, making it easy for the prospect to interact with your ad.

It’s essential to design your Lead Gen form correctly to minimise friction and loss of potential customers. Keep your forms as short and straightforward as possible regarding the number of required fields.

Here are some guidelines for Lead Gen Forms for Linkedin Ads:

✅ Include at least three fields

✅ Twelve is the maximum allowed number of fields.

✅ Your name, profile URL, email address, job title, phone number, and location must be on the table.

Lead Gen Form Completion Rate

The LGF completion rate is the fraction of available forms actually filled out. This is the number of submitted forms divided by the total number of forms opened.

A poor lead gen form completion rate indicates members are opening but not filling out your forms. In most cases, this occurs when:

Lack of interest due to unappealing lead generation form details
It’s not what they believed it would be when they clicked on the front advertisement.
Audience expectations are off.

The target completion rate for Linkedin’s lead generation forms is 10%. Therefore, when running campaigns to generate leads, you should only use this as a guideline for your Lead Gen Form.

LinkedIn’s Conversion Rate Benchmark:

5% – 15%

There is a tremendous variation because businesses employ various definitions of conversions. For example, to some marketers, a conversion is simply someone who clicks their call-to-action button, while for others, it could be the purchase of a >$1000 product.

Different offers would have different conversion rates. Downloading an ebook should have a greater conversion rate than signing up for a demo, as downloading an eBook is much easier and less intimidating than receiving a cold call from a sales rep.

Benchmarks for Linkedin Engagement Rates

The engagement rate is the proportion of people who click on your ad. It is calculated by paid and unpaid clicks divided by total impressions.

So why is this useful? Awareness of the brand is the primary goal. Creating a buzz around your product and giving your sales team cover fire is crucial. The average participation rates are as follows:

Non-video Advertisements: 0.52 Percent
Video Ad Viewing Rate: 1.58 Percent

You should know that LinkedIn’s pricing for clicks and engagements varies with your goals. The traffic will serve as the basis for every evaluation.

Rate of Sponsored Content Engagement by Region

Note that the Benchmark for engagement is based on the engagement goal. In the same way, as with the other mentioned benchmarks, you will choose a campaign target that fits your goal.

North America: 0.75%
Asia-Pacific: 1.36%
EMEA: 1.18%
Latin America: 1.43%

Industry Engagement Rates for Sponsored Content

Sectors’ engagement rates are shown here. We have covered every primary business sector represented by Linkedin advertisements.

Software & IT: 0.88%
Finance:1.22%
Education: 1.22%
Hardware & Networking: 1%
Healthcare: 1.1%
Manufacturing: 1.33%
Media & Communications: 1.05%
Retail: 1.42%
Public Administration: 1.58%
Consumer Goods: 1.26%
Transportation & Logistics: 1.2%
Corporate Services: 1.16%

Disclaimer: Businesses have self-reported their own industry when creating their Linkedin pages.

Benchmarks for Ads and Emails

There are no standard metrics for message ads. In addition, sponsored content metrics do not apply here because the ad format is unconventional.

Click-through rate (CTR) for in-message ads/emails: 3.57%
Ad/InMail Open Rates in Messages: 39%

The click-through rate (CTR) of a message ad is the fraction of recipients who went on to click an advertisement in the Message.

The open rate of a messaging campaign is calculated by dividing the number of opened emails by the total number of emails sent. Recipients may never read your communications despite your best efforts.

Video Ad Benchmarks on LinkedIn

The new big trend in online advertising is video, which is seen as more authentic and attention-grabbing. Both marketers and consumers are showing a growing interest in and preference for online video.

These metrics will help you gauge the success of your LinkedIn video ads:

View-through rate of approximately 29.3%
Engagement rate of approximately 1.7%

The view-through rate is the ratio of unique views to total views or impressions.

A “View” on a Linkedin video ad indicates that one person has viewed the video. Two or more seconds of playback with the video inside 50 percent of the screen. Or, a click-to-action is required to count as a view. So the first one that occurs is the winner.

Industry Standards for LinkedIn Conversation Ads

An average of 50% of viewers open LinkedIn Conversation Ads.
An average CTR of 12%.

Conversation Ads is one of Linkedin’s more recent advertising options. This type of advertisement is intended to increase member engagement with businesses.

Benchmarks for LinkedIn Live & Virtual Events

A LinkedIn virtual event is an online event hosted on the LinkedIn platform, allowing individuals and organizations to connect and engage with their audience from anywhere in the world. These events can be used for a variety of purposes, including job fairs, product launches, webinars, conferences, and more.

LinkedIn virtual events can be live-streamed or pre-recorded, and can include a range of features such as keynote speeches, Q&A sessions, polls, and networking opportunities. Attendees can join the event from their LinkedIn account, and interact with other participants and hosts through the chat and messaging features.

The average Live engagement rate is 8%
The attendance rate is estimated 39%
Average Live lifetime views: 100 – 17,000 views
Cost per registration for LinkedIn Event, without a registration form, is $50.00
Cost per registration for LinkedIn Event would be $91.00

Key Takeaway

LinkedIn’s Ad Benchmarks are a great way to compare your current ad campaigns and see where you need to make improvements. With the above stats, you can track your success rates, identify any gaps in your marketing strategy, and make necessary adjustments.

So, whether you’re just starting out or you’ve been doing it for years, LinkedIn Ads is an essential part of successful online B2B advertising.