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LinkedIn Ads are often seen as a premium channel for B2B marketers and rightly so. But while the platform offers access to high-value decision-makers, it also comes with a steep learning curve and much higher costs compared to platforms like Google or Meta.
Take Mark, a SaaS founder who invested thousands into LinkedIn advertising. He ran sponsored posts and message ads and even tried video campaigns. Yet despite the spending, conversions were nearly non-existent. The problem? Poor audience targeting and inefficient campaign setup led to irrelevant clicks and a wasted budget.
LinkedIn reports that advertisers see a 33% increase in purchase intent when campaigns are structured correctly. But if you're not optimising, you're not just missing out, you're burning cash.
In this blog, we’ll break down the real reasons LinkedIn ads fail, the hidden costs behind poor campaign structure and the exact strategies you can use to reduce cost-per-click (CPC) while boosting ROI.
LinkedIn is one of the most expensive platforms for paid media, especially if you're not careful with your targeting or bidding strategy. On average, Cost-Per-Click (CPC) on LinkedIn ranges between £3–£9 ($4–$12) depending on your industry, audience and ad format. That’s significantly higher than what you'd expect to pay on platforms like Facebook or Google Ads.
So why the premium?
LinkedIn offers direct access to decision-makers and high-value B2B audiences, including CEOs, directors, procurement leads and people with buying power. That also means more competition per click. Everyone from SaaS startups to enterprise consultancies is targeting the same users, driving up CPCs.
Add to that LinkedIn’s auction-based ad model. If your campaign isn’t properly optimised, bidding too broadly or targeting irrelevant segments, you end up competing against high-spending advertisers, which forces your CPC even higher.
And unlike Google Ads, LinkedIn doesn’t offer as much search intent. If your messaging or targeting is off, you’ll spend premium rates for traffic that doesn’t convert.
Bottom line: LinkedIn advertising can be powerful, but without the right strategy, you’re just paying more for less.
LinkedIn offers powerful targeting options, but that power becomes expensive fast when used incorrectly. Many businesses unknowingly burn through their budget due to a handful of avoidable mistakes:
One of the most common errors is casting the net too wide. Targeting "IT Professionals" sounds strategic, until you realise you’re reaching everyone from junior developers to CIOs. A software company targeting all IT professionals, for example, is likely to see high CPCs and poor lead quality. Instead, narrowing to IT Directors at mid-sized tech firms improves both relevance and ROI.
Not all ad formats are created equal. Sponsored InMail (Message Ads) often have low response rates despite high delivery costs. For lead generation, Single Image Ads typically outperform Document Ads, especially when paired with a strong CTA and Lead Gen Form. Choosing the wrong format means paying more for fewer results.
LinkedIn’s default “Maximum Delivery” bidding strategy can result in overspending. While it maximises impressions, it also lets LinkedIn control your CPC, often not in your favour. Using Manual CPC bidding gives you control over how much you're willing to pay, helping prevent your campaign from spiralling out of budget.
Generic messaging is another budget killer. Ads that say “Learn More” or “We Can Help” fail to grab attention. A stronger CTA like “See How 500+ CEOs Increased ROI by 3x” creates urgency and speaks directly to a high-value audience.
Running cold campaigns without retargeting means you’re constantly paying for first-touch engagement, the most expensive kind. Retargeting site visitors or past ad engagers helps nurture warm leads for a fraction of the cost.
Every one of these mistakes increases your ad costs without improving conversions. Fixing them is the first step to running LinkedIn ads that perform.
LinkedIn’s audience filters are powerful, but only when used with precision. Fine-tuning your targeting can cut waste, boost engagement and significantly lower CPC.
Start by using layered targeting. Instead of selecting broad categories, combine filters like Job Title + Seniority + Industry + Company Size. For example, target “Marketing Directors” at Tech Startups with 11–50 employees. This reduces noise and ensures your ad reaches decision-makers in your sweet spot.
Next, leverage Matched Audiences for account-based marketing (ABM). Upload customer email lists or CRM segments to target high-value accounts. You can also retarget visitors who engaged with your website or previous ads, delivering messages to people already familiar with your brand.
Don't forget to exclude irrelevant segments. If you're selling to decision-makers, there's no reason to spend budget reaching interns, job seekers, or students. Use LinkedIn’s filters to exclude these groups and focus solely on users who can make or influence buying decisions.
Finally, prioritise decision-makers over casual browsers. Roles like CMOs, Heads of Operations and Procurement Directors have buying authority and higher conversion potential.
Smarter targeting not only improves performance, it ensures every pound or dollar spent is moving the needle toward real business outcomes.
Once you’ve fine-tuned your audience targeting, the next step is to actively reduce your cost-per-click (CPC) without compromising on lead quality. These proven strategies can help you bring down spend while increasing ROI:
LinkedIn’s default bidding strategy, “Maximum Delivery”, prioritises reach but not efficiency. By switching to Manual CPC bidding, you set a ceiling on what you're willing to pay per click.
Example: If LinkedIn suggests a bid of £6 ($8), test with £3 ($4) and monitor performance. You’ll often find you can maintain lead volume while spending far less per click.
LinkedIn rewards high-performing ads with lower CPCs and better placement. Continuously A/B test your headlines, creatives and CTAs to identify top performers. The more relevant and engaging your ad is, the more cost-efficient it becomes.
Driving users to external landing pages introduces friction and increases drop-offs. Instead, use LinkedIn’s native Lead Gen Forms, which pre-fill user details and make conversion frictionless. These forms can double your lead conversion rate compared to standard website redirects.
Ad timing matters. LinkedIn engagement is highest from Tuesday to Thursday between 8 AM – 12 PM and 4 – 6 PM. Running ads during these windows maximises visibility while keeping CPC down.
Avoid weekends. Engagement plummets while CPCs often remain elevated due to low activity. Together, these adjustments can reduce LinkedIn ad costs by 20–40%, giving you more qualified leads without scaling your budget.
Total Bathrooms partnered with Mr Digital to reduce their rising ad spending while maintaining strong lead volume. Like many businesses using LinkedIn, they were wasting their budget on low-intent clicks and broad targeting.
We helped them refine their strategy by:
The results?
Just like with LinkedIn, this case proves that precise targeting, smart bidding and optimised ad formats can significantly improve campaign performance without increasing budget.
Yes, LinkedIn ads come at a premium. But when used strategically, they can deliver exceptional results without draining your budget. The key lies in targeting the right audience, choosing efficient bidding models and using ad formats that convert.
By excluding unqualified traffic, leveraging retargeting to nurture warmer leads and refining your ad copy and CTAs, you make sure that every click drives real value. It’s not about spending more, it’s about spending smarter.
Struggling with high LinkedIn ad costs? Let us build you a custom LinkedIn ad strategy that maximises ROI and cuts out waste. Contact us today to get started.
Joshua is a Senior Content Writer with a diverse background in journalism and storytelling. He has a passion for crafting engaging and informative content that resonates with target audiences. Joshua's experience in writing and his understanding of digital marketing ensure content is both captivating and effective in achieving marketing goals.
Ross is the Managing Director of Mr Digital, bringing over 15 years of experience in digital marketing and business strategy to the company. He has a proven track record of driving growth and achieving exceptional ROI for clients. Ross's leadership and expertise in the digital landscape make him a valuable resource for businesses seeking to thrive online.
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