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2024年5月24日

What are LinkedIn Ads? Explains how to set it up with 17 images!

What are the different types and features of LinkedIn ads?"


For those who have such questions, this article will explain in detail the types and features of LinkedIn ads and how to set them up.


We will also explain how using LinkedIn can help you grow your business, along with specific costs, so please read on.


What is LinkedIn Advertising?

The following is an explanation of LinkedIn advertising.


  • What is LinkedIn?

  • Differences from Meta ads

  • Types and Features of LinkedIn Ads


What is LinkedIn?

LinkedIn is a business-oriented social networking service established in 2003. Companies post job openings and product information, while individuals use it to advance their careers, change jobs, and network with others.


Currently, LinkedIn has over 1 billion users worldwide, and its usage has increased since its acquisition by Microsoft. In particular, it is widely used by knowledge workers and executives in many countries, including the U.S. and Japan, where its importance as a business social network is growing.


Suitable mainly for BtoB companies, it enables targeted advertising using users' detailed occupational information and can directly approach specific industries and occupations. Thus, for example, it is possible to send advertisements to executives or experts in a specific industry.


Other non-advertising uses of LinkedIn and examples of corporate implementation are explained in the following article.


What is LinkedIn? Benefits for individuals and businesses and how to use it.


Differences with Meta Advertising (formerly Facebook)

LinkedIn ads and Meta (formerly Facebook) ads differ in the attributes of their target audiences.


LinkedIn is a business-specific platform and is used primarily by business people in their 20s and 30s.


In contrast, Meta's primary user base is mainly in their 40s and 50s, and tends to have a higher percentage of male users.


LinkedIn users provide business-related details such as job title and industry in their profiles, which enables highly accurate targeting based on this information.


Meta, on the other hand, has more private information, making LinkedIn a better choice for a direct approach to business-specific needs.


Types and Features of LinkedIn Ads

The types and features of LinkedIn ads below are explained.


  • Sponsored Content

  • Sponsored InMail

  • Dynamic Ads

  • Text Ads


Sponsored Content

Sponsored content is one of the most popular types of LinkedIn ads. This is a format that appears in a regular post, allowing you to reach your target audience in a natural way, resulting in high engagement.


The main formats include single image, carousel image, and video ads, which bring visuals to the forefront and grab the user's attention.

Format

Overview

Single Image

Effective for communicating a direct message using a single image and concise text.

Carousel Ads

Slide format with multiple images to introduce your product or service in a more multifaceted way.

Video Advertising

Combines visual appeal and informative content for particularly impactful promotions.

These ads are particularly suitable for mobile users and are highly effective in today's world of smartphone users. Sponsored content, with its variety of formats and natural integration into feeds, provides a means for companies to efficiently reach their intended audience.


Sponsored InMail

Sponsored InMail is an advertising service that allows you to send personalized messages to targeted recipients' message boxes. This Sponsored InMail feature allows you to communicate directly and individually to specific users.


The feature has a very high open and response rate because messages are sent only when the user is active. This individually optimized message can be sent at the most appropriate time for effective promotion, and is therefore considered an effective means of BtoB marketing.


Sponsored InMail is especially effective in scenarios where a direct approach is required, such as product promotions or event invitations. In these scenarios, high cost-effectiveness can be achieved with appropriate messaging and targeting.


Dynamic Advertising

Dynamic Ads are personalizable ad formats that appear only on LinkedIn desktops. These ads are fixed to the right side of the feed and remain on the screen even when scrolling, making them highly visible.


In particular, customized messages can be displayed for each user, such as "Would you like to become our follower?" for a specific user? or "Would you like to apply for this job? or "Would you like to apply for this job? Such personalization can be further engaged by utilizing the user's name and profile picture.


There are several types of dynamic ads, including follower ads, spotlight ads, and job ads, each of which can be designed to prompt a specific action. Follower ads encourage people to follow a company page, spotlight ads are used to highlight a product or event, and job ads encourage people to apply for a specific job.


These ads are customized based on the behaviors and interests of the target audience and can be expected to generate high engagement.


Text Ads

Text ads are the simplest form of advertising on LinkedIn and primarily target desktop users. This ad format combines text with a small image and appears at the top of the post or in the sidebar.


The main appeal of text ads lies in their directness, with a clear message and compact visuals that grab the user's attention and prompt a specific action.


They can be used in a wide variety of situations and are ideal for messages that involve guidance, such as product promotions, event announcements, and job postings. There are also a variety of targeting options, allowing users to be narrowed down by geographic region, industry, job title, skill set, and other details.


This improves the relevance and effectiveness of the advertisement and allows for maximum return on a limited advertising budget. Due to its cost efficiency and simplicity of setup, text ads are an effective advertising vehicle, especially for small and medium-sized businesses.


Advantages of Advertising on LinkedIn

The following are three advantages of advertising on LinkedIn.


  • Ads can be distributed to the business segment.

  • Ads can be targeted based on industry, job title, interests, characteristics, etc.

  • Can be utilized in the full funnel (from awareness to lead acquisition)


Ads can be delivered to the business segment

The biggest advantage of using LinkedIn is the ability to distribute advertisements to business-focused users. While other social networking sites focus on hobby sharing and communication, LinkedIn users are primarily looking to expand their careers, develop new business, and learn from industry leaders and experts.


For this reason, advertising on LinkedIn can directly reach an audience that is business-minded and has purchasing power. This is a particularly valuable medium for B-to-B companies, as many users are in a position to be involved in decision-making.


Because ads can be delivered in a natural way to these users, they can expect higher engagement and results than other platforms. the LinkedIn environment is dominated by business-related content, and users are accessing it in business mode, so responses to ads also tend to be positive tend to be positive.


Targeted distribution by industry, job title, interests, characteristics, etc. is possible.

A second advantage is the ability to precisely target LinkedIn ads. With over 1 billion users worldwide, LinkedIn allows users to provide detailed information about their professional backgrounds in their profiles, which forms the basis for ad targeting.


Companies can segment their targets by categories such as company, job level, education, and topics of interest to reach specific business segments directly.


LinkedIn is an ideal platform for B2B companies, especially those employing an account-based marketing strategy (i.e., a focused approach to specific companies). By distributing ads based on company name and industry, you can efficiently reach potential customers and address their specific business needs.


In addition, by reaching out to LinkedIn's global user base, you can also conduct cross-border advertising campaigns. In this way, LinkedIn can maximize the suitability and effectiveness of your ads by combining the accuracy of business information with the personalization of your ads.


Can be used in a full funnel (awareness to lead acquisition)

LinkedIn ads fully support a full-funnel marketing strategy through its variety of ad formats and objectives. The platform allows you to run campaigns from brand awareness to lead acquisition to job applicants. This allows us to provide the right ads for each stage of the user's buying journey.


In the early stages, visual and video-based ads are placed to increase brand awareness, while in the middle stages, interest is deepened through ads that encourage engagement and video viewing. Further downstream, we develop ads that lead to specific actions with the goal of conversion and lead acquisition.


LinkedIn Advertising Costs

The cost structure of LinkedIn advertising consists of two main methods: PPC (pay-per-click) and CPM (pay-per-impression).


This flexible billing method allows companies to choose the most cost-effective method for their campaign objectives. Ads are delivered in an auction format, with delivery determined based on the advertiser's budget and the quality of the ads.


The quality of the ads is measured by their reach, engagement rate, and percentage of goals achieved.


This characteristic encourages a cost-effective way to reach target audiences. This allows for cost-effective advertising development in BtoB marketing.


Operation and Management of LinkedIn Ads

The following three points will be explained regarding the operation and management of LinkedIn advertisements.


  • Points to consider when operating on your own

  • How to choose and cooperate with an agency

  • Which is better, in-house or with an agency?


Points to consider when operating on your own

For effective operation of LinkedIn advertisements, it is important to select advertisements according to the purpose and refine the targeting. It is recommended that different advertisements be used for different purposes.


Purpose

Point

To improve brand awareness

Sponsored content and dynamic ads that utilize targeting based on broad interests and concerns are suitable.


This allows us to provide content that matches the user's interests, which directly leads to increased awareness.

When approaching a customer base under consideration

Advertising with targeting based on specific industries, job titles, and positions is effective. This makes it possible to design messages that meet specific needs and encourage users to take action.


In addition, sponsored InMail is effective at the stage of encouraging purchases and inquiries, as it can provide individually customized messages.

Diversification and testing of creative is essential to the operation. It is recommended to prepare different versions of the ads and identify the most effective elements through AB testing.


In addition, while maintaining the brevity of the message, the headline should be the first important information to be conveyed, so that it can easily grab the user's attention.


How to Select and Cooperate with an Operations Agency

When outsourcing LinkedIn advertising management agency for promotional purposes, confirm what issues were addressed in the case study, how the agency approached those issues, and what results were achieved. This will allow you to determine how in-depth their knowledge of LinkedIn is.


When outsourcing for recruiting purposes, it is advisable to choose an agency that can not only manage the ads, but also improve the quality of applications and matching with applicants.


Even after outsourcing advertising management to an agency, it is recommended that you regularly check to see if the management meets your company's needs, rather than leaving everything to the agency.


Requesting regular reports and working together to adjust your strategy based on the results is essential to the success of your campaign.


In-house or outsourced management?

When it comes to managing your LinkedIn ads, whether you prefer to do it in-house or with a third-party agency depends on your situation.


If you manage your ads in-house, you can be involved in the entire process, from ad serving to results analysis and improvement, but this requires expertise and time. On the other hand, if you use an outsourced agency, you can avoid all of this work, and the optimization will be done by a vendor with expertise, but at an additional cost.


The following points should be considered in making your choice.

Comparison points

In-house operation

Operation on behalf of the company

Resources

Requires in-house time and human resources

Save resources by hiring a contractor

Expertise

Requires in-house expertise

Agency provides specialized operations

Cost

Low direct costs, but labor costs must be taken into account

Initial investment is high, but may be more efficient in the long run

Control

High

Low

Based on this information, it is important to choose the method that best fits your company's situation.


For example, if you do not have in-house expertise in advertising operations, or if you do not want to put additional workload on your busy human resources department, using an operations agency may be appropriate. On the other hand, if you have extensive internal resources and want to control the entire advertising process, in-house management may be preferable.


How to start and set up a LinkedIn ad

Here is how to get started and set up your LinkedIn ad


  1. Create an account and link it to your company page

  2. Create an ad (campaign)


The details of each of these steps are described below.


However, if you have not created a company page before starting LinkedIn Ads, you will need to set up your company page details after setting up your personal account. The details are explained in the following article.


What is LinkedIn? Benefits for individuals and businesses and how to use it.


Creating an Account and Linking to Your Company Page

To create an account and link it to your company page, follow these steps


Step 1: After logging into LinkedIn, select "For Business" in the upper right corner of the home page and click "Ads".


Step 2: Enter your account name and select a currency. Enter your company name in the "Associate LinkedIn Company/Organization Page" to link it to your company page. After entering the information, click "Agree and Create Account" to complete the process.


Creating an Ad (Campaign)

To create an ad (campaign), follow the steps below.


Step 1: Click "Ads" in the created ad account.


Step 2: From the "Detailed Account List," select the account for which you wish to place an ad.


Step 3: Click "Create" and then "Campaigns" to begin creating a new campaign.


Step 4: Enter a Campaign Name.


Step 5: Select either "Brand Awareness" or "Website Visits", whichever matches your campaign objectives.


Step 6: Click on either "Based on Profile" or "LinkedIn Template" for targeting.


If you select "Based on Profile," set the location, language, industry, job level, job type, position, and whether or not automatic reach extension tools are available.


If you select "LinkedIn Template," set the location, language, and whether or not automatic reach extension tools are available.


Step 7: Select the ad format with "Single Image" or "Video" depending on the selected objective.


Step 8: Set the "Budget & Schedule" and click "Save & Continue.


Step 9: Confirm the contents of the forecast results for the "Audience" and "Budget & Schedule" settings, and if there are no problems, click "Create New.


Step 10: Create the creative details of the ad according to the input fields and "Save Ad".


Step 11: Confirm all images and text and click "Next.


Step 12: Enter your "Business Information" and "Payment Method" and after confirming, click "Agree and Start Campaign" to start your ad.


Notes on LinkedIn ad serving

The following cautions apply to the distribution of LinkedIn ads.


  • Cost-per-click is higher than other social networking services.

  • If targeting is set too finely, the target population will decrease.

  • Languages need to be optimized for the target country.



First, the cost-per-click for LinkedIn ads tends to be higher than for other social networking sites. This is partly due to the relatively small number of LinkedIn users, which makes competition for ads more intense. However, because of the high accuracy of targeting, it can be cost-effective when cost-per-acquisition is taken into account.


In addition, when targeting, there is a risk that too much fine-tuning will result in a low volume of ad serving. It is necessary to check the budget and the expected number of clicks and the expected number of audiences on the ad management screen, and make adjustments so that appropriate advertising costs can be used.


In addition, care should be taken in setting the targeting language. Even when serving ads in Japan, if you want to reach users whose profile language is set to English, it is recommended that you set the targeting language to English.


Since it is not possible to adjust or check reports by device, it is important to adjust the display content of the linked website so that it is displayed appropriately on all devices. In addition, ad formats and LinkedIn page linkage cannot be changed once set, so please consider this when creating your campaign.


TheDigitalX provides LinkedIn ad consulting and management support for overseas companies

If you have any concerns about LinkedIn strategy planning and management, please contact The Digital X for a consultation.


Our local native marketers and specialists in Japan will support you.


Please feel free to contact us with any questions or concerns you may have.


We look forward to hearing from you.

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