Advertising on LinkedIn? Absolutely!

LinkedIn’s advertising function is less well-known than Facebook’s. And yet, for B2B companies, it can be an extremely powerful tool.

Suppose Facebook is the vehicle “par excellence” for organizations that want to talk to the consumer (B2C). In that case, LinkedIn is the favourite weapon of companies that want to transmit their message to other companies via their professionals.

How so?

A few figures speak for themselves*:

  • 690 million users who are primarily professionals
  • 63 million decision-makers
  • 180 million top influencers
  • 10 million senior managers

LinkedIn is an excellent gateway for decision-makers who are otherwise very difficult to reach.

The key: ROI

Do you advertise? So you have to think about ROI, that is, return on investment. ROI reveals the performance of your advertising campaign. For every dollar invested, how much do you get back?

When we compare Facebook and LinkedIn for advertising, the first thing that strikes is the price, which is much higher on LinkedIn.

And that puts off many companies. “Let’s stick with Facebook; it’s cheaper!”

Really? If you are in B2B, bring out the calculator.

How to calculate the ROI of your ads

Imagine the following scenario. It’s a fictional case, but it will help you see beyond appearances and figure out what works best for you.

So here is the situation. You are in B2B and want to find prospects; on average, each prospect brings you $65.

You turn to Facebook with an ad budget of $100.

10,000 people see your ad; of those 10,000, you convert two. So your cost per view is $0.01 and per prospect $50.

Imagine that you put the same budget on LinkedIn and that your ad is only seen by 500 people, or 20 times less! So your cost per view is $0.20 – or 20 times more than on Facebook.

But (because there is a but) you convert 4 people (instead of 2 on Facebook) because LinkedIn allows you to target your prospects better.

Therefore, your conversion cost is $25 (100 ÷ 4), which is twice as low as on Facebook.

Now let’s calculate the ROI

There are several ways to do this, but let’s take the simplest one (gain ÷ investment × 100) with the following:

  • Investment = $100
  • Gain = number of leads won × $65


  • Investment: $100
  • Gain: $130 (2 prospects at $65 each)
  • ROI: 130 ÷ 100 × 100 = 130%


  • Investment: $100
  • Gain: $260 (4 prospects at $65 each)
  • ROI: 260 ÷ 100 × 100 = 260%

In this scenario, your ROI with LinkedIn (260%) is twice as high as with Facebook (130%).

ROI is THE data you need to track to measure the results of your ads. Not clicks, not visits, not impressions: ROI.

In short, LinkedIn is undoubtedly more expensive, but it shouldn’t be ruled out for this reason only. An advertising campaign on this network could be worth the price depending on the context and your objectives.

Also Read: The Art of Online Banner Advertising

But what is LinkedIn’s strength?

It’s targeting.

You can target based on a whole lot of criteria that are highly relevant to your business, which has a direct impact on ROI.

What are these targeting criteria? Some of them include:

  • The level of education
  • Skills
  • The industry
  • The professional title
  • Current employer or previous employers
  • Function
  • The city or region
  • Etc.

So, Facebook or LinkedIn for your ad?

The basic rule: if you are in B2C, Facebook; if your customers are other companies, LinkedIn. But the essence of rules is to have exceptions.

To find out what works for you, do some tests and calculate your ROI.

Facebook, LinkedIn or others, remember that your ads only have a fraction of a second to capture attention. Good targeting, compelling design and eye-catching text are essential.

If you need a concrete strategy, our experts are here to guide you!

*Source: LinkedIn

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