LinkedIn Ads: Everything you need to know in 2025

Running ad campaigns on LinkedIn is one of the most effective ways to connect with the right target audience in a short period of time. It allows you to showcase your value proposition directly to decision-makers in businesses, ensuring your message reaches the right people.

LinkedIn Ads stand out as the #1 most reliable digital advertising platform, thanks to its massive user base of 1 billion professionals. Even better—4 out of 5 LinkedIn users have the authority to make business decisions, making it a goldmine for B2B marketing.

Compared to other social media platforms, LinkedIn users have 2x the buying power of the average online user, making them more likely to convert into high-value customers.

This guide will provide crucial insights into LinkedIn Ads, covering the different ad types, strategies to leverage them for your business goals, and much more. By the end, you’ll discover a secret method to reduce your LinkedIn ad costs by 4X, maximizing your ROI like never before.

Why LinkedIn Ads?

There are multiple platforms like Facebook, Instagram, and smaller ones like Quora or Reddit for advertising. But why choose LinkedIn?

It all comes down to the monetary value associated with individual users. As mentioned earlier, a significant portion of LinkedIn users are decision-makers who drive high-value business decisions.

LinkedIn Ads are the ideal choice for businesses looking to connect with other businesses and build B2B relationships.

On the other hand, Meta platforms (Facebook and Instagram) are more suitable for B2C conversions, as their targeting options are designed for reaching consumers. However, Meta Ads lack the sophisticated B2B targeting capabilities that LinkedIn offers.

LinkedIn Ads allow you to target based on company size, headcount growth, job titles, and other intricate details, ensuring that your campaign budget is spent efficiently. Additionally, those familiar with Meta Ads will find LinkedIn Ads easy to navigate, as both platforms share a similar interface.

Types of LinkedIn Ads

There are around 10 different types of ads on LinkedIn. To choose the right ones that meet your business expectations, you need to gain key insights into each ad type.

You could spend days or even weeks experimenting with LinkedIn Ads campaign settings on your own to get an idea of how they work. Or, you can stick around until the end of this blog to learn about the different types of LinkedIn ads with practical examples.

Sponsored Visual Content

Visual content that lands directly in the feed of your target audience which is also known as native ads. Sponsored content is the most popular form of LinkedIn ads because of it’s simplicity, functionality and efficiency. 

These sponsored content will be indistinguishable from other posts except for the ‘Sponsored’ label associated with that and the CTA option. 

Since it’s almost similar to organic content, users are highly likely to engage with Sponsored Visual Content compared to the rest.

These are the 6 different forms of Sponsored Visual Content Ads on LinkedIn:

• Single image ads
• Carousel ads
• Event ads
• Document ads
• Thought leader ads
• Video ads

1. Single Image Ads

These ads feature a single static image with a headline, description, and CTA button. They work best for driving traffic to landing pages, promoting blog posts, or highlighting key services. A fintech company, for example, might use a single image ad to promote a new whitepaper with a “Download Now” button.

2. Carousel Ads

Carousel ads let you showcase multiple swipeable cards (2–10) in a single ad. They’re great for telling a story, showcasing product features, or sharing testimonials. A SaaS company might use them to highlight different tools, while a recruitment agency could create a step-by-step hiring guide.

3. Event Ads

Want more attendees for your event? Event ads are designed to promote LinkedIn Events with a direct RSVP button. They help drive sign-ups for webinars, product launches, and conferences. For example, a cybersecurity firm could use an event ad to invite decision-makers to a “Live AI in Cybersecurity” webinar.

4. Document Ads

These ads allow users to preview and download PDFs, eBooks, case studies, or reports directly from LinkedIn. They work well for lead generation, as companies can require users to submit a form before downloading. A consulting firm, for instance, could share a “2024 Tech Trends Report” while capturing prospect emails.

5. Thought Leader Ads

Unlike other ads, this format promotes organic posts from employees, executives, or industry experts within a company. It helps brands build credibility by amplifying CEO insights, employee success stories, or industry commentary. A company might boost their VP’s post on “The Future of Remote Work” to engage HR leaders.

6. Video Ads

Video ads autoplay in the LinkedIn feed, making them ideal for product demos, customer testimonials, and brand storytelling. A SaaS company could showcase a 30-second walkthrough of its platform, while a fintech brand might share a success story featuring a real customer.

Each ad type serves a unique purpose—lead generation, brand awareness, or event promotion. Choosing the right one depends on your goals. In the next session, we’ll cover LinkedIn’s campaign settings, exploring how to set up these ads effectively to maximize results.

Other Types of LinkedIn Ads

While sponsored visual ads dominate the platform, LinkedIn offers several other ad formats that cater to different marketing needs.

1. Text Ads

Text ads are small, clickable ads that appear in the sidebar or top of LinkedIn pages. They consist of a short headline, brief description, and CTA. These ads are cost-effective for brand awareness and driving website traffic.

For example, an HR tech company might run text ads targeting recruiters with a message like “Struggling to hire top talent? Get AI-driven insights today.”

2. Dynamic Ads

Dynamic ads use LinkedIn profile data (such as a user’s name, job title, or company) to create personalized ads in real-time. These ads are available in three formats:

Follower Ads – Encourage users to follow a company page.

Spotlight Ads – Direct traffic to a landing page.

Job Ads – Promote job openings dynamically based on a user’s profile.

A tech company hiring software engineers could use job ads that automatically display relevant job postings to qualified candidates.

3. Message Ads & Conversation Ads

These ad types allow businesses to engage with prospects directly through LinkedIn messages:

Message Ads (InMail Ads): Personalized messages sent straight to a user’s inbox with a CTA.

Conversation Ads: A more interactive format that lets users choose different CTA paths within a single conversation.

For example, a cloud computing company could send targeted InMail messages offering an exclusive whitepaper to CTOs, encouraging them to book a free consultation.

4. Lead Gen Forms

Lead Gen Forms allow businesses to collect high-quality leads without redirecting users away from LinkedIn. When users click the ad, LinkedIn automatically fills out their details (name, email, job title) based on their profile, reducing friction in the sign-up process.

For example, a marketing agency could use lead gen forms to capture emails for a free LinkedIn Ads strategy guide.

1. Awareness – Making Your Brand Recognizable

Brand awareness campaigns are designed to introduce your business to potential customers and increase familiarity with your name, product, or service. These campaigns focus on maximizing reach and impressions rather than immediate conversions.

How It Works

Uses impressions-based bidding to display your ads to as many relevant users as possible.

Helps brands build credibility and stay top-of-mind among decision-makers.

Ideal for businesses launching new products, entering new markets, or competing in saturated industries.

Example:

Imagine a new AI-powered resume builder targeting HR professionals and job seekers. Instead of jumping straight to sales, the company runs a brand awareness campaign, showcasing testimonials from professionals who found jobs using their tool. The goal? Familiarize HR teams with their brand so that when they need a new tool, this company is the first name they remember.

Best Ad Formats

🔹 Sponsored Content (Single Image, Carousel, Video Ads) – Great for storytelling.

🔹 Text Ads – Cost-effective for keeping your brand visible in search results.

Think of this like a billboard on a busy highway—your ad isn’t asking for an action, just ensuring your brand is seen and recognized.

2. Consideration – Encouraging Engagement and Exploration

At this stage, your audience knows about you, but they need more information before making a decision. These objectives help nurture potential customers by driving interactions, website visits, or lead collection.

2.1 Website Visits – Bringing Traffic to Your Digital Storefront

Want people to explore your website, read an article, or check out your latest product? The Website Visits objective ensures your ads drive qualified traffic to a landing page, blog, or company site.

How It Works

Uses cost-per-click (CPC) bidding to drive targeted visitors.

Optimizes ad placements for users most likely to click and engage.

Example:

A SaaS company launching a new project management tool wants to increase sign-ups for its free trial. Instead of waiting for users to discover them organically, they run LinkedIn ads directing users to a landing page with a video demo. By using this objective, they ensure potential customers learn about their tool firsthand.

Best Ad Formats

🔹 Single Image Ads – Direct traffic to a product page.

🔹 Video Ads – Showcase product features visually.

🔹 Message Ads – Personalized messages inviting users to learn more.

Think of this like handing out flyers at a business conference—you’re inviting people to check out what you offer.

2.2 Engagement – Sparking Conversations Around Your Brand

Not all marketing should be about selling. Sometimes, engagement is the goal—getting people to interact with your content, follow your company page, or join a conversation.

How It Works

Optimizes ads for likes, comments, shares, and follows.

Builds credibility and strengthens social proof for your brand.

Example:

A leadership consultant runs a LinkedIn poll asking, “What’s the #1 leadership quality you value in a manager?” This ad sparks meaningful conversations among professionals while positioning the consultant as an authority in leadership training.

Best Ad Formats

🔹 Sponsored Content – Engage users with valuable insights.

🔹 Conversation Ads – Directly chat with users.

Like hosting a networking event—you’re encouraging people to talk about your brand.

2.3 Video Views – Capturing Attention Through Visual Storytelling

Videos are one of the most engaging formats in digital marketing. This objective helps businesses maximize video views to educate, entertain, or showcase their offerings.

How It Works

Ads are optimized for cost-per-view (CPV) to maximize video completion rates.

Works well for explainer videos, product demos, and customer testimonials.

Example:

A cybersecurity company releases a 30-second animated video showing how hackers steal company data—and how their software prevents it. A video ad campaign ensures their message reaches IT professionals and decision-makers who need security solutions.

Best Ad Formats

🔹 Video Ads – Ideal for capturing attention in the feed.

This is like a TV commercial—capturing attention through visual storytelling.

2.4 Lead Generation – Collecting High-Quality Prospects

This objective helps businesses gather leads without users ever leaving LinkedIn. A pre-filled form makes it easy for users to share their details.

How It Works

Uses LinkedIn’s Lead Gen Forms, where users submit details (email, job title, company) instantly.

Works well for webinars, eBooks, free consultations, and product demos.

Example:

A consulting firm offering a free industry report uses Lead Gen Ads to collect high-intent prospects. Instead of sending users to an external website, LinkedIn pre-fills their details—boosting sign-ups with minimal effort.

Best Ad Formats

🔹 Lead Gen Ads – Form submission directly within LinkedIn.

🔹 Sponsored Content – Promote gated content like eBooks or case studies.

Like an RSVP form at a seminar—collecting attendee details effortlessly.

3. Conversion – Driving Actions That Matter

Now, it’s time for business. These objectives push users to take meaningful actions, whether it’s signing up, making a purchase, or applying for a job.

3.1 Website Conversions – Turning Interest into Action

This objective drives users to complete a specific action, such as signing up for a demo, purchasing a product, or filling out a contact form.

How It Works

Uses LinkedIn Insight Tag to track and optimize conversions.

Works best when combined with retargeting strategies.

Example:

A fintech startup wants users to sign up for a budgeting app. Instead of just sending traffic, they optimize for users who actually complete the sign-up process, ensuring better ROI.

Best Ad Formats

🔹 Sponsored Content – Drive conversions with strong CTAs.

🔹 Message Ads – Personal invites to complete a specific action.

Think of this like an online checkout counter—pushing users toward completing an action.

3.2 Job Applicants – Recruiting Top Talent

For companies looking to hire, LinkedIn offers Job Ads that promote open positions directly to qualified candidates.

How It Works

Targets professionals based on skills, experience, and job titles.

Works best for hard-to-fill roles requiring specific expertise.

Example:

A healthcare company hiring nurses uses LinkedIn Job Ads to reach professionals with medical backgrounds. This ensures that only qualified candidates apply, saving time and hiring costs.

Best Ad Formats

🔹 Job Ads – Showcase open roles.

🔹 Sponsored Content – Promote company culture.

Like a virtual job fair—attracting the best candidates to apply for your roles.

How to Set Up a LinkedIn Ad Campaign: A Step-by-Step Guide

LinkedIn is the go-to platform for B2B marketing, allowing businesses to connect with decision-makers and industry professionals. With over 1 billion users, LinkedIn Ads provide a powerful way to generate leads, increase brand awareness, and drive sales.

If you’re new to LinkedIn advertising, don’t worry—this guide will walk you through every step of setting up a successful LinkedIn ad campaign, from choosing the right objective to optimizing your performance.

1. Getting Started with LinkedIn Campaign Manager

Before you can launch ads on LinkedIn, you’ll need to create a Campaign Manager account—LinkedIn’s dedicated ad platform.

1.1 Creating a LinkedIn Campaign Manager Account

1. Go to LinkedIn Campaign Manager.
2. Click “Create Account” and enter your company details.
3. Connect your account to your LinkedIn Company Page (optional but recommended).

Why? Connecting your ad account to a company page allows you to run Sponsored Content ads and gain credibility with potential customers.

1.2 Setting Up Billing Information

• Add a payment method (credit card or invoice).
• Choose between prepaid or postpaid billing.
• Review LinkedIn’s billing cycle to understand when charges occur.

Tip: If you plan on running multiple campaigns, set up an invoice billing option to manage payments efficiently.

2. Defining Your Campaign Objectives

Your campaign objective determines how LinkedIn optimizes your ad delivery. Choose one based on your marketing goals:

Example: If you’re launching a new SaaS tool, you might start with Brand Awareness and then shift to Lead Generation once your brand gains recognition.

3. Audience Targeting: Finding the Right People

One of LinkedIn’s biggest advantages is precise audience targeting. You can reach users based on:

3.1 Key Targeting Options

Location – Target by country, city, or ZIP code.
Job Titles & Seniority – Reach decision-makers or entry-level professionals.
Industry & Company Size – Focus on companies within your niche.
Skills & Interests – Target users based on their LinkedIn activity.
LinkedIn Groups – Engage with professionals in relevant groups.
Matched Audiences – Retarget people who visited your website.

Tip: Keep your audience size between 50,000 – 500,000 for best results. Too broad? Your message may be irrelevant. Too narrow? Your reach may be too limited.

4. Choosing the Right LinkedIn Ad Format

LinkedIn offers six ad formats to choose from:

Example:

• Brand Awareness? → Use Sponsored Content with engaging visuals.
• Lead Generation? → Use Lead Gen Forms to collect emails.
• Hiring? → Use Dynamic Job Ads to attract applicants.

5. Creating and Writing an Effective Ad

5.1 Crafting a Strong Headline

Your headline is the first thing users see. Make it clear, concise, and compelling.

✅ Example of Good Headlines:
❌ “Boost Your Business” → Too generic.
✅ “Get 3X More Leads with Our AI-Powered CRM” → Specific & benefit-driven.

5.2 Writing Compelling Ad Copy

• Speak directly to your audience’s pain points.
• Keep it short and scannable (less than 150 characters).
• Use a clear CTA (e.g., “Download Now,” “Sign Up for Free”)

5.3 Designing Eye-Catching Visuals

• Use high-quality images (1200×627 px for Single Image Ads).
• For videos, keep them under 30 seconds for best engagement.

6. Setting Your Budget and Bidding Strategy

6.1 Understanding LinkedIn’s Pricing Model

LinkedIn uses auction-based pricing, meaning costs depend on competition.

• CPC (Cost-Per-Click): Best for website visits & lead generation.
• CPM (Cost-Per-1,000 Impressions): Best for brand awareness.
• CPV (Cost-Per-Video View): Optimized for video ads.
• CPS (Cost-Per-Send): Used for Message Ads.

6.2 How to Set Your Budget

• Daily Budget: Best for ongoing campaigns.
• Lifetime Budget: Best for short-term promotions.

Start with at least $20/day for testing. Scale up once you see positive ROI.

7. Launching Your Campaign & Tracking Performance

7.1 Final Review Before Launch

• Double-check your targeting settings.
• Test different ad variations (A/B testing).
• Preview your ad on mobile & desktop.

7.2 Using LinkedIn Analytics

• Click-Through Rate (CTR): Measures how many people clicked your ad.
• Conversion Rate: Tracks how many completed an action (sign-up, purchase).
• Cost-Per-Lead (CPL): Measures the cost of acquiring a new lead.

Tip: If CTR is below 0.5%, tweak your ad copy or targeting.

8. Optimizing and Scaling Your LinkedIn Ads

• Test different ad creatives (images, headlines, CTAs).
• Adjust your bidding strategy (lower CPC without sacrificing quality).
• Retarget website visitors to boost conversions.

9. Common LinkedIn Ad Mistakes to Avoid

🚨 Mistake #1: Overcomplicating your audience targeting. (Keep it simple!)
🚨 Mistake #2: Forgetting to A/B test ads. (Always test variations!)
🚨 Mistake #3: Ignoring mobile optimization. (Over 60% of users browse LinkedIn on mobile.)

10. Conclusion & Next Steps

LinkedIn Ads are powerful but require strategic planning. To summarize:
✅ Choose the right objective based on your goals.
✅ Target the right audience to maximize relevance.
✅ Create engaging ad copy with a strong CTA.
✅ Monitor and optimize based on performance data.

Now it’s time to launch your first LinkedIn campaign!

FAQs

1. How does the LinkedIn ads auction work?

LinkedIn operates on an auction-based system where advertisers bid for ad placements. The platform considers your bid, the relevance of your ad, and the likelihood of your desired outcome to determine whose ad is shown. A higher bid increases your chances, but ad quality and relevance are equally crucial.

2. What types of companies benefit most from LinkedIn ads?

LinkedIn ads are particularly effective for B2B companies targeting professionals based on specific criteria like job title, industry, or company size. However, B2C companies aiming to reach a professional audience can also find success on the platform.

3. How can I improve the performance of my LinkedIn ad campaigns?

To enhance your LinkedIn ad performance, focus on precise audience targeting, compelling ad creatives, and continuous testing. Regularly monitor metrics and adjust your strategy based on data-driven insights to optimize results.

4. What is the Campaign Quality Score in LinkedIn advertising?

The Campaign Quality Score is a metric that reflects the relevance and effectiveness of your ad campaigns. A higher score indicates better alignment with your target audience’s interests, potentially leading to improved ad performance and lower costs.

5. How does LinkedIn’s retargeting feature work?

LinkedIn’s retargeting, known as Matched Audiences, allows you to re-engage users who have interacted with your website or content. By installing the LinkedIn Insight Tag on your site, you can track visitor behavior and serve tailored ads to these users, enhancing conversion opportunities.

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Ezekiah Livingston

Founder & CEO at Rank Brand Social

A seasoned Digital Marketing expert, currently serving as the Head of Content and Marketing at Amassing Investment, a leading US-based Fintech Firm.

With a passion for SEO, digital branding, and social media marketing (SMM), this expert brings extensive experience in driving online visibility and engagement.

As the founder and CEO of Rank Brand Social, they leverage expertise in SEO strategies and digital branding to help businesses achieve their marketing goals effectively.

With a proven track record of success, they are dedicated to delivering impactful solutions that elevate brands and drive measurable results in the competitive digital landscape.

Connect With Me on LinkedIn

https://www.linkedin.com/in/ezekiah-livingston/

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