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LinkedIn Ads vs Facebook Ads: Cost Comparison

Published on: November 17 2023 by Sam Frost

LinkedIn Ads vs Facebook Ads: Cost Comparison

Table of Contents

  1. Introduction
  2. Cost Comparison: LinkedIn vs Facebook Advertising
    • 2.1 Minimum Spend
    • 2.2 Cost per Thousand Impressions (CPM)
    • 2.3 Cost per Click (CPC)
  3. Target Audience and Platform Differences
    • 3.1 LinkedIn: The Go-to Platform for Professionals
    • 3.2 Facebook: More Consumer-Oriented
  4. Profitability and Return on Investment (ROI)
  5. Choosing Between LinkedIn and Facebook Advertising
    • 5.1 Consumer-Level Businesses
    • 5.2 Business-to-Business (B2B) Solutions
  6. Conclusion

Cost Comparison: LinkedIn vs Facebook Advertising

When it comes to advertising on LinkedIn and Facebook, there are some notable differences in cost. In this article, we'll discuss why LinkedIn ads tend to be more expensive than Facebook ads and when it might be more favorable to choose one platform over the other.

2.1 Minimum Spend

One of the primary differences between LinkedIn and Facebook advertising is the minimum spend requirement. With Facebook, you can start advertising with as little as $2 or $5 a day. However, LinkedIn requires a minimum spend of at least $15 per day in every account. This higher minimum spend on LinkedIn may pose a challenge for businesses with limited budgets, making Facebook ads a more cost-effective choice.

2.2 Cost per Thousand Impressions (CPM)

Another aspect to consider is the cost per thousand impressions (CPM). Generally, you'll find that LinkedIn advertising has a higher CPM compared to Facebook. This higher cost can be attributed to the fact that LinkedIn is known as the go-to platform for professionals and business people to network and share experiences. As a result, the ads on LinkedIn often target a specific audience with greater revenue potential, which leads to higher advertising costs.

2.3 Cost per Click (CPC)

Similarly, the cost per click (CPC) on LinkedIn is generally higher than on Facebook. The nature of the LinkedIn audience, consisting of professionals and employees with identifiable job functions and titles, makes it an attractive platform for business-to-business (B2B) advertising. If your offer is focused on career development, business activity, or selling high-value solutions, LinkedIn's targeting capabilities can outweigh the higher cost per click.

3. Target Audience and Platform Differences

To better understand the cost disparity between LinkedIn and Facebook advertising, it's essential to consider the differences in their target audiences and platforms.

3.1 LinkedIn: The Go-to Platform for Professionals

LinkedIn has established itself as the primary platform for professionals and business-oriented individuals. It provides a unique space for users to connect based on their employment, industry, job function, and company. This makes it an effective platform for advertising B2B solutions or targeting specific professional segments.

3.2 Facebook: More Consumer-Oriented

In contrast, Facebook's primary focus is on connecting individuals in a more casual and consumer-oriented environment. While there are opportunities for targeting specific demographics, interests, and behaviors, the overall purpose of Facebook is not exclusively business-related. This difference in audience mindset and platform usage translates into lower advertising costs compared to LinkedIn.

4. Profitability and Return on Investment (ROI)

While LinkedIn ads may be more expensive upfront, it's crucial to evaluate the overall profitability and return on investment (ROI) of your advertising efforts. Ultimately, the effectiveness of your advertising should be measured by the value it generates for your business. The higher costs of LinkedIn ads may be justified if it leads to a better return or increased profitability compared to Facebook.

5. Choosing Between LinkedIn and Facebook Advertising

When deciding between LinkedIn and Facebook advertising, consider the nature of your business and target audience.

5.1 Consumer-Level Businesses

If you operate a consumer-level business, such as a cafe, retail store, or salon, Facebook advertising is often the better choice. The lower costs per impression and click on Facebook, coupled with its wider reach and consumer-centric atmosphere, make it a more cost-effective option for targeting a broader audience.

5.2 Business-to-Business (B2B) Solutions

On the other hand, if your business revolves around B2B solutions or requires targeting professionals based on their job functions and industries, LinkedIn is the platform to prioritize. Despite the higher advertising costs, LinkedIn's precision targeting capabilities enable you to reach decision-makers and individuals with a greater propensity for high-value offers.

6. Conclusion

In conclusion, LinkedIn ads tend to be more expensive than Facebook ads, primarily due to the platform's focus on professionals and its highly targeted advertising potential. However, the choice between LinkedIn and Facebook advertising should be based on the specific goals and target audience of your business. Consider the overall profitability, return on investment, and the ability to reach your desired audience when making a decision.

Highlights

  • LinkedIn ads generally cost more than Facebook ads, primarily due to targeting professionals and B2B audiences.
  • LinkedIn requires a higher minimum spend compared to Facebook.
  • The cost per thousand impressions (CPM) and cost per click (CPC) are also higher on LinkedIn.
  • Facebook is more consumer-oriented, while LinkedIn is known as the go-to platform for professionals and business people.
  • Consider the profitability and return on investment (ROI) when evaluating the effectiveness of your advertising efforts.
  • Choose LinkedIn for B2B solutions and precise targeting, and Facebook for reaching a broader consumer-level audience.

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