The article discusses the recent surge in demand for LinkedIn ads and the subsequent increase in ad prices. This surge is reportedly driven by the advertiser boycott of unspecified platforms. It highlights the potential of LinkedIn as an alternative platform for advertisers considering moving their ad spend away from other platforms in 2024. Marketers are seeing good returns, but it comes with a higher cost, so budget considerations should be made before switching.
In the past year, the cost of ads on LinkedIn has surged by as much as 30%, according to the Financial Times. The platform has seen a significant increase in demand, with many advertisers switching over from other platforms. The cost per 1,000 impressions of an ad on LinkedIn is now reported to be as high as $300 for premium campaigns, far exceeding the costs on other platforms such as Meta’s, which range between $10 and $15.
LinkedIn ad prices are determined by an auction system based on market demand, so the greater the demand, the higher the ad price. Despite the steep rise in prices, marketers are claiming substantial returns on their investments, with some reporting as much as 20% ROI, indicating that for every $100 spent, they are generating profits of $120.
The platform’s annual ad revenue soared by 10.1% year-on-year in 2023 to almost $4 billion, and Insider Intelligence forecasts an additional 14.1% growth in 2024. LinkedIn’s vice-president of marketing solutions, Penry Price, stated that “more brands” are investing their ad spend in the platform due to its unique targeting capabilities and the platform’s user base, which has twice the buying power of the average web audience, with four out of five members driving business decisions.
Overall, LinkedIn is experiencing a significant increase in ad prices due to the surge in demand from advertisers, driven by various factors such as the advertiser boycott of other platforms. Despite the higher cost, marketers are reporting substantial returns on their LinkedIn ad investments. The platform’s annual ad revenue is also on the rise, and it is likely to see further growth in the coming year. For advertisers looking for an alternative platform to invest their ad spend, LinkedIn is emerging as a solid choice with its unique targeting capabilities and potential for substantial ROI.
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