- The Digital X
- Jun 26
- 11 min read
Updated: Jun 30
“What types of LinkedIn ads are there, and what makes them effective?”
If you’ve ever asked this question, this article is for you.
In this guide, we’ll break down the different types of LinkedIn ads, their key features, and how to set them up step-by-step.
We’ll also explain how LinkedIn advertising can support your business growth—complete with actual cost examples and use cases.
Read on to learn how to make the most of LinkedIn Ads in your marketing strategy.
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What Is LinkedIn Advertising?
In this section, we’ll explain the following:
What LinkedIn is
How it differs from Meta (formerly Facebook) Ads
The types and features of LinkedIn Ads
What Is LinkedIn?
LinkedIn, launched in 2003, is a professional social networking platform designed specifically for business and career-related activities.
Companies use LinkedIn to post job listings, promote products and services, and build brand credibility. Individuals use the platform for networking, career advancement, and job searching.
As of now, LinkedIn has surpassed 1 billion users globally. Since its acquisition by Microsoft, user adoption has continued to grow — especially among knowledge workers, executives, and professionals across industries in markets like the U.S. and Japan.
It is especially effective for B2B companies, allowing highly specific ad targeting based on users’ professional profiles such as job titles, industries, and company sizes. This enables direct advertising to key decision-makers or professionals in niche sectors.
For more about how to use LinkedIn beyond advertising — including corporate case studies — see this article:
How Is LinkedIn Ads Different from Meta (Facebook) Ads?
The main difference between LinkedIn Ads and Meta (formerly Facebook) Ads lies in the target audience and the platform’s primary use case.
LinkedIn is built for business networking. Most of its users are professionals in their 20s and 30s. The platform emphasizes career and industry-related information, allowing advertisers to target audiences based on job title, seniority, industry, and more.
In contrast, Meta’s core user base consists of people in their 40s to 50s, with a slightly higher ratio of male users. While Meta excels in personal data and lifestyle segmentation, it’s less direct when it comes to B2B targeting.
For B2B marketing—especially when your goal is to reach executives, managers, or industry professionals—LinkedIn offers higher targeting accuracy and intent.
How Is LinkedIn Ads Different from Meta (Facebook) Ads?
The main difference between LinkedIn Ads and Meta (formerly Facebook) Ads lies in the target audience and the platform’s primary use case.
LinkedIn is built for business networking. Most of its users are professionals in their 20s and 30s. The platform emphasizes career and industry-related information, allowing advertisers to target audiences based on job title, seniority, industry, and more.
In contrast, Meta’s core user base consists of people in their 40s to 50s, with a slightly higher ratio of male users. While Meta excels in personal data and lifestyle segmentation, it’s less direct when it comes to B2B targeting.
For B2B marketing — especially when your goal is to reach executives, managers, or industry professionals — LinkedIn offers higher targeting accuracy and intent.
Types and Features of LinkedIn Ads
Below are the main types of LinkedIn Ads and their key characteristics:
Sponsored Content
Sponsored Content is the most popular and widely used format on LinkedIn.
These ads appear in users’ feeds just like regular posts, making them feel more natural and less disruptive. Because of this, Sponsored Content tends to generate higher engagement rates.
You can choose from several creative formats, including:
Single Image Ads
Carousel Ads (multiple scrollable images)
Video Ads
These visual formats are highly effective in capturing user attention and driving clicks or conversions.
Format | Overview |
|---|---|
Single Image Ads | Use one image with concise text to deliver a clear, direct message effectively. |
Carousel Ads | Display multiple images in a sliding format, ideal for showcasing various features of a product or service from different angles. |
Video Ads | Combine visual appeal with informative content, making them highly effective for impactful promotions. |
These ads are particularly well-suited for mobile users and deliver strong performance in today’s smartphone-driven landscape.
Because Sponsored Content integrates seamlessly into users’ feeds, businesses can efficiently reach their target audience using a variety of visual formats.
Sponsored InMail
Sponsored InMail allows advertisers to send personalized messages directly to the inboxes of targeted LinkedIn users.
Messages are only delivered when the recipient is active on the platform, ensuring higher open and response rates. This makes it especially effective for B2B marketing, ideal for promoting products, inviting prospects to events, or initiating one-on-one engagement.
When paired with precise targeting and tailored messaging, Sponsored InMail delivers strong ROI for campaigns that require direct interaction.
Dynamic Ads
Dynamic Ads are personalized ad formats that appear exclusively on the LinkedIn desktop interface.
These ads are placed in the right-hand rail of the screen and remain visible even while scrolling, increasing visibility. They use the viewer’s name, profile image, and job title to deliver tailored messages such as:
“Follow our company page”
“Apply for this job”
There are three main types:
Follower Ads (increase page followers)
Spotlight Ads (highlight a product or event)
Job Ads (encourage users to apply for a job)
Dynamic Ads are highly engaging due to their level of personalization and persistent on-screen placement.
Text Ads
Text Ads are the simplest ad format on LinkedIn, primarily targeting desktop users.
These ads appear above the feed or in the sidebar and consist of a short headline, brief description, and optional image.
They are ideal for:
Promoting services or events
Sharing job opportunities
Driving traffic to landing pages
With robust targeting options — such as job title, company size, industry, and skills — you can maximize the relevance and ROI of your campaigns. Thanks to their ease of setup and budget-friendliness, Text Ads are a solid choice for small to mid-sized businesses looking to generate quality leads efficiently.
Benefits of Advertising on LinkedIn
When it comes to B2B digital marketing, LinkedIn stands out as a powerful platform. Here are three key advantages of running LinkedIn Ads:
1. Reach a Highly Engaged Business Audience
The most compelling benefit of LinkedIn advertising is the ability to target a professional, business-focused audience.
Unlike other social media platforms that center around hobbies and entertainment, LinkedIn users are primarily there to grow their careers, expand business opportunities, and engage with industry leaders.
This business-first environment allows your ads to reach high-intent users with strong purchasing power — including decision-makers and executives — making it ideal for B2B companies.
Because users are already in a business mindset, engagement rates on LinkedIn Ads tend to outperform other platforms, with users more receptive to promotional content that aligns with their professional goals.
2. Precise Targeting by Industry, Role, Interests, and More
LinkedIn offers some of the most advanced B2B ad targeting capabilities available.
With over 1 billion users worldwide, each profile includes detailed career-related data, allowing advertisers to build highly specific audiences based on:
Company name or industry
Job title or seniority
Education or certifications
Skills and interests
This makes LinkedIn ideal for Account-Based Marketing (ABM) strategies, where campaigns are customized to target specific companies or roles.
Whether you’re launching campaigns locally or expanding globally, LinkedIn’s accurate targeting ensures that your ads reach the right business professionals.
3. Full-Funnel Marketing: From Awareness to Lead Generation
LinkedIn Ads can support a full-funnel marketing strategy — from brand awareness to lead generation and conversions.
With multiple ad formats and campaign objectives to choose from, marketers can guide users through the buyer journey:
Top-of-funnel: Use image, carousel, or video ads to boost visibility and brand awareness.
Mid-funnel: Promote content, webinars, or event sign-ups to increase engagement and interest.
Bottom-of-funnel: Use lead generation forms or retargeting ads to drive conversions or collect qualified leads.
Whether you’re targeting new audiences or nurturing existing ones, LinkedIn allows for seamless funnel optimization within a single platform.
LinkedIn Advertising Costs
LinkedIn offers two main pricing models for advertising:
PPC (Pay Per Click): You are charged each time a user clicks on your ad.
CPM (Cost Per Mille): You are charged per 1,000 ad impressions.
This flexible pricing structure allows advertisers to choose the most cost-effective method based on their campaign goals — whether that’s driving traffic or increasing visibility.
Ad delivery is determined through an auction system, which evaluates both your bid and the quality of your ad. LinkedIn uses a relevance score based on factors such as:
Engagement rate
Click-through rate (CTR)
Conversion performance
Compared to other major social media platforms, LinkedIn advertising is less saturated, meaning it’s often easier to gain visibility even with smaller budgets — especially in B2B campaigns. This makes LinkedIn a highly cost-efficient channel for targeting professional audiences.
Managing and Running LinkedIn Ads
If you’re considering launching LinkedIn ads, here are three key areas to keep in mind:
Key tips for managing LinkedIn Ads In-House
How to Chooese and Work with a LinkedIn Ads Agency
In-House vs. Outsourcing: Which is Better for LinkedIn Ads?
Key Tips for Managing LinkedIn Ads In-House
To run effective LinkedIn ad campaigns internally, it’s essential to align the ad format with your campaign objective and apply precise targeting. Choosing the right type of ad based on the desired outcome — whether it’s brand awareness, lead generation, or engagement — ensures your campaign delivers optimal results.
Objctive | Key Tip |
|---|---|
Boosting Brand Awareness | Use Sponsored Content or Dynamic Ads with broad interest-based targeting. This approach allows you to deliver relevant messaging aligned with user interests, directly contributing to increased brand visibility and recognition. |
Reaching Potential Customers in the Consideration Stage | Targeted ads based on specific industries, job functions, and seniority levels are highly effective at this stage. By tailoring your messaging to match their specific needs, you can drive users toward action. Additionally, when the goal is to encourage purchases or inquiries, Sponsored InMail performs well by delivering personalized, one-on-one messages directly to decision-makers. |
Diversifying Creatives and Running Tests Is Essential
When managing LinkedIn ads, it’s essential to create multiple versions of your creatives and run A/B tests to identify the most effective variations.
Use concise messaging, and be sure to highlight the key takeaway in the headline to immediately capture attention.
How to Choose and Work with a LinkedIn Ad Agency
If you’re outsourcing LinkedIn ad management for promotional purposes, review the agency’s case studies carefully.
Understand what challenges they tackled, what strategies they implemented, and what results they achieved. This helps gauge their expertise in LinkedIn advertising.
For recruitment-focused campaigns, select an agency that not only manages ads but can also improve applicant quality and job-candidate matching.
After outsourcing, don’t leave everything to the agency. Check regularly to ensure their campaigns align with your goals. Request detailed reports and collaborate on strategy updates based on results. Ongoing communication is key to campaign success.
In-House vs Outsourcing: Which Is Better?
When it comes to managing LinkedIn advertising, whether to handle it in-house or outsource to an agency depends on your company’s current resources and goals.
Managing campaigns in-house gives you complete control over the entire process — from ad creation to performance analysis and ongoing optimization. However, this approach requires both technical expertise and significant time investment.
On the other hand, outsourcing to a professional agency allows you to save time and benefit from expert optimization, but it comes with additional costs.
To determine the best option for your business, consider the following factors:
Criteria | In-House Management | Outsourced Management |
|---|---|---|
Resources | Requires internal time and manpower | Saves internal resources by delegating to an agency |
Expertise | Needs specialized knowledge with the team | Leverages the agency's professional expertise |
Cost | Lower upfront costs, but must account for internal labor expenses | High initial investment, but potentially more cost-effective in the long run |
Control | Full control over strategy and execution | Less direct control, but streamlined and optimized by experienced professionals |
Choosing the Right Management Approach for Your Business
When deciding between in-house and outsourced LinkedIn ad management, it’s essential to select the option that best aligns with your company’s current resources and capabilities.
For example, if your team lacks advertising expertise or your HR department is already stretched thin, outsourcing ad operations is a practical and efficient choice.
On the other hand, if you have sufficient internal resources and prefer to maintain full control over campaign execution, managing ads in-house may be the better path.
How to Get Started with LinkedIn Ads
Here’s a step-by-step guide on how to launch and set up LinkedIn Ads:
Creating an Account and Linking It to Your Company Page
Setting Up a Campaign and Selecting Ad Objectives
If you haven’t yet created a LinkedIn company page, you’ll need to complete that step after setting up your personal account.
For a detailed tutorial, refer to our guide below.
How to Create an Account and Link to Your Company Page
Follow these steps to set up your LinkedIn Ads account and connect it to your business page:
Step 1:
After logging into LinkedIn, go to the upper-right corner of the homepage, select “For Business”, then click “Advertise”.
Step 2:
Enter your account name and select your preferred currency.
To link your ad account with your company page, type your company name into the field labeled “Associate a LinkedIn Company Page”.
Once entered, click “Agree and Create Account” to complete the setup.
Creating an Ad Campaign on LinkedIn
To launch a LinkedIn ad campaign, follow these steps:
Step 1:
Click on “Advertise” from your created LinkedIn ad account dashboard.
Step 2:
From the “Account Overview” page, select the ad account you wish to use for campaign creation.
Step 3:
Click on “Create” → “Campaign” to start setting up a new campaign.
Step 4:
Enter a campaign name to label your new campaign.
Step 5:
Select the campaign objective that best aligns with your goals — either “Brand Awareness” or “Website Visits”.
Step 6:
For audience targeting, click either “Based on profile attributes” or “LinkedIn templates” to proceed with setting your desired target criteria.
If you choose “Based on profile attributes”, you can set the following targeting criteria:
Location
Language
Industry
Job seniority
Job function
Job title
Enable or disable LinkedIn’s audience expansion tool
These settings allow you to define a precise and relevant audience for your campaign.
If you choose “LinkedIn template”, you can configure the following settings:
Location
Language
Enable or disable LinkedIn’s audience expansion tool
This option simplifies the setup process by using predefined targeting templates tailored for common campaign goals.
Step 7:
Based on your selected campaign objective, choose an appropriate ad format — either “Single Image” or “Video” — to best align with your marketing goals.
Step 8:
Set your “Budget & Schedule”, then click “Save and continue” to proceed.
Step 9:
Review the forecast results based on your “Audience” and “Budget & Schedule” settings. If everything looks correct, click “Create new” to finalize your campaign setup.
Step 10:
Based on the input fields, create the details of your ad creative, then click “Save Ad” to complete the setup.
Step 11:
Review all images and text carefully, then click “Next” to proceed.
Step 12:
Enter your business information and payment method, then review all details. Once confirmed, click “Agree and Launch Campaign” to start running your ad.
Key Considerations for Running LinkedIn Ads
When setting up LinkedIn ads, it’s important to keep the following points in mind:
1. Higher CPC Compared to Other Platforms
LinkedIn ads typically have a higher cost-per-click (CPC) than other social media platforms. This is primarily due to the smaller user base and competitive ad space. However, since LinkedIn allows highly accurate targeting, the cost per acquisition (CPA) can still be favorable and offer strong return on investment.
2. Overly Narrow Targeting Can Reduce Reach
While detailed targeting is a benefit, setting your targeting parameters too narrowly can significantly limit your ad reach. Be sure to monitor the estimated audience size and forecasted performance metrics such as impressions and clicks to ensure your campaign can effectively utilize the budget.
3. Optimize Language Settings Based on Audience
Even if your ads are targeting users in Japan, you should consider setting the target language to English if your audience’s LinkedIn profiles are set to English. Language targeting on LinkedIn is tied to the profile language, not the geographic location.
4. Cross-Device Compatibility Is Crucial
LinkedIn does not allow ad performance breakdowns by device, so it’s essential to ensure your landing page is mobile-responsive and renders well on all devices—PC, tablet, and smartphone alike.
5. Ad Format and Page Linking Cannot Be Changed Later
Once your ad format or LinkedIn Page is set during campaign creation, it cannot be edited afterward. Carefully consider your campaign setup in advance to avoid unnecessary rework.
By addressing these considerations, you can ensure more efficient and effective LinkedIn ad performance — particularly valuable in B2B lead generation, recruitment marketing, and professional brand awareness campaigns.
The Digital X Supports Global Businesses with LinkedIn Ads Strategy and Management
If you’re feeling uncertain about planning or managing your LinkedIn advertising campaigns, The Digital X is here to help.
Our team of local native marketers and Japanese digital marketing specialists work together to support your international growth through data-driven LinkedIn ad strategies.
Whether you’re aiming to increase brand awareness, generate B2B leads, or hire top talent, we’re ready to assist.
Contact us today through our inquiry form to discuss your goals, challenges, or questions. Let’s create a strategy tailored to your success.