LinkedIn Advertising: Costs, ROI and Benchmarks

LinkedIn ads consistently outperform other advertising platforms in conversion metrics. The average LinkedIn conversion rate is 6.1% (U.S.)—substantially higher than Google Search (3.75%) and Google Display (0.77%). This article presents LinkedIn advertising costs, ROI and benchmarks for 2025, including CPC, CPM, cost efficiency, and case studies by industry.

LinkedIn Conversion Advantage

LinkedIn ads consistently outperform other advertising platforms in conversion metrics:

• Average LinkedIn conversion rate: 6.1% (U.S.) [1]
• Google Search: 3.75% [1]
• Google Display: 0.77% [1]

According to Tamarind's B2B House, LinkedIn offers a 63% conversion advantage over Google Search and a 692% advantage over Google Display, consolidating its position as the most effective platform for B2B marketing. [1]

What Is the LinkedIn Cost Per Click (CPC)?

CPC Ranges by Format

Cost per click on LinkedIn varies by ad format: CPC by format:

• Sponsored Content: $5-8 per click [2]
• Lead Gen Forms: $5-7 per click [2]
• Videos: $4-6 per click [2]
• HR-Tech: $4-7 per click (specific sector) [2]

Factors influencing CPC:

• Targeting: More specific audiences cost more
• Ad format: Sponsored content vs. message ads
• Industry competition: High-competition industries drive up costs
• Bidding strategy: Manual vs. automatic bidding
• Time of year: Q4 typically sees higher costs

CPC vs CPM

Cost Per Mille Impressions (CPM)

According to Closely, The median CPM on LinkedIn is $31, but varies considerably by sector and targeting. [3] Factors influencing CPM:

• Sector: Saturated sectors (B2B SaaS, General Tech) = higher CPMs
• Audience: Well-defined audiences and low competition = lower CPMs
• Targeting: Very specific targeting = higher CPM
• Format: Video formats may have lower CPMs

CPM by sector:

• Saturated sectors (B2B SaaS, General Tech): Higher CPMs [3]
• Sectors with well-defined audiences: Lower CPMs, better conversion metrics [3]

When to Use CPC vs CPM

Use CPC (Cost Per Click):

• Objective: Lead generation, conversions
• Advantage: Pay only for clicks
• Ideal for: Conversion campaigns, landing pages

Use CPM (Cost Per Mille):

• Objective: Brand visibility, awareness
• Advantage: Control impressions
• Ideal for: Branding campaigns, visibility

What Is the LinkedIn Advertising ROI?

Return on Ad Spend (ROAS)

According to Dreamdata, Excellent ROAS is 3:1 or higher, meaning you generate $3 in revenue for every $1 spent on advertising. [4] ROAS Calculation: ROAS Interpretation:

• ROAS < 1:1: Losing money (revenue < spend)
• ROAS 1:1 to 2:1: Poor performance
• ROAS 2:1 to 3:1: Acceptable performance
• ROAS 3:1+: Excellent performance

Cost Efficiency

Cost Per Lead (CPL)

Cost per lead varies by format used: CPL by format:

• Lead Gen Forms: $75-150 per lead (6-10% form completion rate) [5]
• Landing pages: $100-200+ per lead (3-5% conversion rate) [5]

According to Cleverly, Efficiency gap: Lead Gen Forms reduce CPL by approximately 25% but often at the expense of lead quality. [5]

Conversion Rate by Format

Conversion rates:

• Lead Gen Forms: 6-10% [6]
• Landing pages: 3-5% [6]
• Overall benchmarks: Good performance = 5-15% conversion rate [6]

What Are the LinkedIn Advertising Benchmarks by Industry?

HR-Tech and Specialized Sectors

HR-Tech (example of specialized sector):

• CPC: $4-7 per click [7]
• Advantages: Well-defined audience, moderate competition
• Performance: Lower CPM, better conversion metrics

Sectors with well-defined audiences:

• Benefit from lower CPMs
• Better conversion metrics
• Lower acquisition costs

Saturated sectors:

• B2B SaaS: Higher CPMs, higher costs [7]
• General Tech: Higher CPMs, strong competition [7]

ROI Case Studies

Use Case: Specialized Sectors

HR-Tech Example:

• CPC: $4-7
• CPM: Lower than median ($31)
• Conversion: Better conversion metrics
• ROI: Superior performance thanks to well-defined audience

Success factors:

• Well-defined audience
• Moderate competition
• Precise targeting
• Relevant messages

Optimization to Improve ROI

1. Refine Targeting

• Narrow audience to reduce waste
• Use custom audiences
• Test different audience segments

2. Test Lead Gen Forms vs Landing Pages

• Forms: Higher conversion but potentially lower quality
• Landing Pages: Better qualification but lower conversion
• Identify optimal trade-off for your case

3. Optimize Ad Creative

• A/B test headlines, images, and copy
• Optimize for different formats
• Personalize based on audience

4. Measure Conversion, Not Vanity Metrics

• Track lead quality metrics (MQL, SQL, opportunities)
• Set LinkedIn budgets based on pipeline impact, not reach
• Ignore likes and followers, focus on conversions

5. Monitor and Adjust

• Review performance weekly
• Optimize underperforming campaigns
• Scale successful campaigns

Integration into B2B Sales Pipeline

Pipeline Conversion Stages

B2B sales pipeline conversion stages (benchmark):

• Lead → MQL (Marketing Qualified Lead): 20-30% [8]
• MQL → SQL (Sales Qualified Lead): 40-60% [8]
• SQL → Opportunity: 20-30% [8]
• Opportunity → Close: 25-40% [8]

Metrics to track:

• Lead quality: MQL, SQL, opportunities
• Pipeline impact: Impact on sales pipeline
• Sales cycle compression: Reduction in cycle duration
• Attributed revenue: Revenue generated from LinkedIn

Glossary

CPC (Cost Per Click) : Average cost paid for each click on a LinkedIn ad. Varies by format, targeting, and competition. CPM (Cost Per Mille) : Cost for 1,000 impressions. LinkedIn median CPM is $31, but varies by sector and targeting. ROAS (Return on Ad Spend) : Revenue generated per dollar spent on advertising. A ROAS of 3:1 means $3 in revenue for every $1 spent. Lead Gen Forms : Lead generation forms integrated into LinkedIn, offering 6-10% conversion rate but potentially lower lead quality. Landing Pages : External destination pages, offering 3-5% conversion rate but better lead qualification.

Methodology

The data presented in this article comes from:

• Primary sources: Official LinkedIn reports, internal LinkedIn analyses, company case studies
• Secondary sources: Analytics tool analyses, creator case studies, company reports
• Period covered: Data primarily from 2024-2025
• Limitations: Metrics may vary by industry, company size, and objectives. Benchmarks may differ by region.

FAQ