Running LinkedIn Ads without a clear sense of how they stack up against industry benchmarks is like driving without a map. You might be moving, but are you actually headed in the right direction? Understanding how your campaigns compare to industry standards can help you identify areas for improvement, refine your strategy, and maximize your return on investment.
But what exactly should you be measuring, and how do you know if your performance is strong or falling behind? Let’s break it down.
Key LinkedIn Ad Metrics to Track
Before you can benchmark your performance, you need to track the right metrics. The most important ones for LinkedIn Ads include:
- Click-Through Rate (CTR) – Measures how many people clicked on your ad compared to how many saw it.
- Conversion Rate – The percentage of users who took the desired action (e.g., filled out a form, signed up for a webinar, or requested a demo).
- Cost-Per-Click (CPC) – How much you’re paying for each click on your ad.
- Cost-Per-Lead (CPL) – The cost of acquiring a lead through your LinkedIn campaign.
- Engagement Rate – How often users interact with your ad, including likes, comments, and shares.
Tracking these metrics over time will give you a clear picture of what’s working and where adjustments are needed.
How Your LinkedIn Ads Compare to Industry Benchmarks
Every industry has different expectations for LinkedIn ad performance. A high CTR in one sector might be considered below average in another. While benchmarks vary, here are some general LinkedIn ad performance averages:
- CTR: 0.44% – 0.65% (varies by industry)
- CPC: $5 – $10 per click
- CPL: $75 – $150 per lead (depending on targeting and offer)
- Engagement Rate: 1.5% – 3%
If your metrics are significantly below these benchmarks, it may be time to adjust your targeting, messaging, or creative assets. If you’re outperforming these averages, you’re likely running an effective campaign—but there’s always room for optimization.
Identifying Areas for Improvement
Once you’ve compared your performance against industry benchmarks, the next step is improving weak spots. Here’s how:
1. If Your CTR Is Low:
- Test new ad creatives, such as videos or carousel ads.
- Experiment with different ad copy to make it more engaging.
- Adjust your targeting to ensure your ads are reaching the right audience.
2. If Your CPC Is High:
- Narrow your audience to make your ad spend more efficient.
- Use LinkedIn’s Matched Audiences to target users who have already engaged with your brand.
- Optimize your bidding strategy—manual bidding might lower costs compared to automated bidding.
3. If Your Conversion Rate Is Low:
- Align your ad messaging with your landing page to ensure consistency.
- Reduce friction in the sign-up process (e.g., pre-fill Lead Gen Forms).
- Offer more compelling incentives, such as free trials or exclusive content.
Using Benchmarking to Refine Your Strategy
Benchmarking shouldn’t just be a one-time exercise. Regularly comparing your performance to industry standards helps you:
- Spot trends in your campaign performance over time.
- Make data-driven decisions instead of guessing what works.
- Justify ad spend and prove ROI to stakeholders.
For businesses that manage LinkedIn Ads at scale, working with a LinkedIn advertising agency can provide deeper insights. Agencies often have access to more extensive benchmarking data and can help fine-tune campaigns based on broader industry trends.
Takeaway
Benchmarking your LinkedIn Ad performance against industry standards isn’t just about knowing where you stand—it’s about continuously improving. By tracking key metrics, identifying gaps, and making strategic adjustments, you can ensure your LinkedIn campaigns are not just meeting expectations, but exceeding them.
Whether optimizing in-house or partnering with a LinkedIn advertising agency, keeping a close eye on benchmarks will help you drive better results and maximize your advertising budget.
