New Guide for Marketers
Best Practices for Bidding on LinkedIn
December 1, 2020
The most effective LinkedIn ad campaigns are built on focused and agile bidding strategies.
To help with your bidding strategy, we have created a new guide, “Best Practices for Bidding on LinkedIn.” The guide is full of useful tips to help you navigate bidding with LinkedIn’s Campaign Manager tool.
When you launch a campaign on LinkedIn, all ads enter a second-price auction system for advertisers trying to reach members visiting LinkedIn’s feed. The auction runs in the background in milliseconds, ranking bids from various advertisers competing for the same ad slot for a member.
The bid is the maximum price you’re willing to pay for a key result, such as a click. The bid type selected should be based on your marketing objectives, such as building awareness or generating website traffic. Then a combination of relevancy (how likely a LinkedIn member will engage with your ad) and bid value determines which advertiser’s ad is shown to the member, and when.
LinkedIn offers bid types where you can choose your bid value or more automated bid types — where LinkedIn does the work for you. Advertisers may also want to move between bid types based on their changing marketing needs. We’ve highlighted the bid types below, but for tips and more information be sure to check out the new bidding guide and tree.
LinkedIn currently has 3 bid types: Maximum Delivery, Target Cost, and Manual.
Maximum Delivery is a fully automated bid option where LinkedIn’s system sets the bid. It is best used when you want to deliver your full budget, while getting the most key results possible. (Note that Maximum Delivery was formerly known as Automated Bidding, Auto Bid.)
Target Cost is a bid type offered for CPC, CPM and CPV. It is also an automated option where LinkedIn’s system sets the bid. However, it allows the advertiser to set their preferred cost per key result. LinkedIn’s system will stay as close to that specified cost as possible.
Manual bidding is our most hands-on option for advertisers, where we recommend the campaigns be monitored regularly. However, it does offer advertisers the most control over their bid. Advertisers enter their bid value and that is exactly what is used in the ad auction.
The new guide, “Best Practices for Bidding on LinkedIn,” features a number of tips for developing an effective bidding strategy. Among the tips:
When should you use Target Cost Bidding and Maximum Delivery?
Uncertain how to bid for your campaign? Don’t have time to regularly manage bidding? Target Cost Bidding and Maximum Delivery are your best options. Manual Bidding gives you the most control over your bid values, but also requires the most oversight. Choose the bid type that best suits your campaign’s goals.
Why should you start at the high end of the recommended bid range?
With Manual Bidding, Campaign Manager suggests a bid range to make your ads most likely to be seen. Start at the high end of the recommended range. This will help in winning auctions.
When should you rely on Automated Bidding?
If your campaigns are spending 85% of their daily budget with Target Cost Bidding or Maximum Delivery, it’s an indicator that your campaign is healthy, and would benefit from using Automated Bidding to get even more results for your budget.
Read all of the tips in “Best Practices for Bidding on LinkedIn.”
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