LinkedIn Ads Lead Forms & Costs
LinkedIn Ads cost and budget: LinkedIn Ads Cost: Why Lead Gen Forms are the best choice in most cases
LinkedIn Ads Lead Gen Forms are essential in lead generation as their conversion rate is on average five to ten times higher than landing pages. Due to the click costs of €7 – €8, this is crucial.
LinkedIn has developed strongly in recent years: the social media portal for business networks is showing a dynamism that Facebook once had at its peak. People share their diverse insights from their professional careers, thoughts, projects and mostly knowledge from their special fields – often highly specialized knowledge.
In the area of ad placement, LinkedIn Ads offer very accurate control options, which is why the delivery in the B2B area to certain decision-makers is valid and reliable. As with other advertising systems, LinkedIn measures bids for impressions through real-time auctions where competitors bid on possible impressions in order to reach a specific audience. Therefore, your advertising spend may vary depending on your goals and your target audience. Also due to the high budgetary commitment to placement in coveted positions in the target audience’s feeds, the average CPCs are higher than, for example, Facebook.
Above-average costs, but also above-average conversion rates
A normal, average CPC for a single single image ad can be around €7 to €8 in German-speaking countries in 2022. That depends entirely on the degree of optimization and user interest. If a topic meets with a very high level of interest and the design of the ad is particularly exciting and low-threshold, the click-through rate can be higher, causing the click price to fall. A normal CPM, i.e. the purchase price for 1,000 impressions, is around €50 – €60. A normal CTR, i.e. the click-through rate, can be 0.6% – 1.5% in good cases, which means: 6 – 15 clicks on 1,000 impressions would cost around €4 – €10 per impression with a CPM of €60 click.
Landing page as a link target is not a solution with a conversion rate of 1% - 3%
Now the question is: What do we get out of it – and what do we gain from it? Therefore, let’s take a look at the LinkedIn Ads conversion rates. A conversion rate indicates what percentage of users have been converted to a target action. In the B2B area, this would usually be a completed contact form, a registration, an inquiry or an appointment booking.
The benchmark for an average conversion rate when redirected to a landing page was officially given by LinkedIn in 2019 as 2.50%. So this is quite a typical conversion rate on a B2B landing page, which we would also find in the Google Ads area, where it is often around 1% – 3%. The only difference is that with Google Ads, the click price can be as little as €2 in many areas of the search network, and less than €1 in performance max mode, because many clicks are generated from the display network and YouTube, which often come from a Click price of less than €0.50. This means: A conversion with LinkedIn Ads with the redirection to a landing page costs significantly more in most cases than with Google Ads. With a LinkedIn Ads CPC of €8 and a conversion rate of 2.50%, we would need exactly 40 clicks to achieve a conversion, which would mean a cost per lead of €320.
LinkedIn Ads Lead Gen Forms can achieve a consistent conversion rate of 20%
However, the Lead Gen Forms are quite a trump card of LinkedIn Ads: According to official LinkedIn benchmarks from 2019, these have an average conversion rate of around 10.26% internationally. With sufficient optimization and cuts in ads targeting, a stable conversion rate of just over 20% is absolutely realistic. Means: Every fifth click becomes a lead. Also means: With a CPC of €8, the conversion, in this case the lead through the registration, would cost €40 and €320. A CPC of €7 would result in a €35 conversion. There are even campaigns that can generate a lead for less than €10 if a particularly exciting and popular incentive is used for registration, such as a highly popular downloadable guide on a topic.
What is a Lead Gen Form?
Lead Gen Forms are an important milestone in the development of successful online marketing technologies. At their core, they are classic contact forms that are characterized by the fact that most of the data is filled out by the system via auto-fill. With LinkedIn Ads, the user only has to enter the email address and the form can be sent. Each click on the ad on LinkedIn always calls up the Lead Gen Form – the user never gets to a landing page.
By auto-filling in various custom information, such as company name and job title, we can import important data into our CRM. Above all, however, the auto-fill-in is easy to reach in decision-making and thus increases the willingness of users to get in touch with us at all. That’s why the conversion rate is so high. Lead Gen Forms can be used for direct inquiries, webinar registrations, incentive downloads or job postings.
Linkedin advertising formats: Lead Gen Forms in combination with single image ads as standard for lead generation
In my experience, the Single Image Ad in combination with Lead Gen Forms is the most effective advertising format. With a single image ad, there is an introductory text with a maximum of 600 characters, an image and a title for the image including a call-to-action button. The introductory text should contain functional elements and explain what the offer is about, give a taste of the topic and generate interest. An exciting question at the beginning of the introductory text can often be very successful in generating leads. The picture should arouse interest and, if possible, match the subject matter. Any number of variations of text can also be used in the image, because unlike Facebook Ads, there are no percentage restrictions on the space taken up by text elements on LinkedIn.
Do other advertising formats work in lead generation?
In my experience, other formats, such as videos, have consistently shown that they can even generate good CTRs, i.e. click-through rates – but the conversion rate is significantly lower than with single image ads. Overall, in my experience in lead generation, single image ads have always been more productive than video ads with lead gen forms. So it may well be that with every frame of the video, users get more opportunities to change their mind. A confused mind always says no, that’s what they say about decision-making of any kind. It’s just that with videos, due to the many different tonalities, sentences and movements, it’s very difficult to find out which of these things is crucial for the user not converting was. With a single image ad, the effectiveness of one element can be tested against the other using an A/B test. Above all, however, the single image ad is low-threshold and appropriate for the push-based appearance in the user’s news feed: It does not overload the user’s capacity and willingness to accept an offer from an everyday situation.
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