What is CPM in relation to LinkedIn?
CPM stands for Cost Per Mille, and it is an advertising metric used to measure the cost of reaching 1,000 people with an ad on LinkedIn. CPM is used to compare the cost of advertising on different platforms and to help determine the most cost-effective way to reach a target audience.
CPM allows you to optimize for views over clicks or interactions
“CPM is ideal if you want to prioritize visibility over clicks or sales,” explains Adobe Experience Cloud communications director, this type of campaign strategy is ideal for companies and organizations “targeting high-value leads to convert to customers.”
How to use CPM bidding on LinkedIn
LinkedIn Ads should strive for a Click-Through-Rate (CTR) of 1% or higher, if they wish to switch to cost-per-impression (CPM) bidding. This could potentially be below $1/click.
To maximize the effectiveness of LinkedIn Ads, advertisers should focus on creating effective ad copy, selecting relevant targeting options, and testing different ad variations to find the best performing combination. Additionally, advertisers should use A/B testing to measure the effectiveness of different ad variations over time. This will help to identify the most effective ad variations, as well as helping to optimize campaigns and maximize ROI.
Average CPM Data for Paid Campaigns on LinkedIn
The average cost-per-mille (CPM) rate for paid campaigns on LinkedIn is often starting around $6.00 and could be as high as $195. the cost-per-thousand (CPM) of LinkedIn ads can vary greatly depending on a variety of factors such as the industry, target audience, ad format, and bidding strategies.
That being said, the average CPM of LinkedIn ads is estimated to be around $20-$25. This rate can vary depending on the type of campaign and the targeting options used. It is important to remember, advertisers with larger budgets may be able to uncover better rates.