Why understanding bidding strategy is essential to run social ads
Going for the right bidding strategy is the key to getting the best results* within your budget.
It can determine the chances of your ad actually being seen and interacted with by your audience.
*results: Defined by you eg. If you want to target more website conversions, then that is your key result
What is bidding strategy and how to select one
Let's try to understand what your bidding on LinkedIn first:
Suppose your target audience are accountants who are business-owners.
When such an accountant is scrolling their LinkedIn feed and there's an opportunity to show an ad to them, LinkedIn runs a small auction between you and your competitors for that ad spot.
LinkedIn assigns each of the ads a score based on:
🧠 your bidding strategy
💵 your bid amount and
🙂 the relevance of your ad
If your ad then gets the highest overall score, your ad is shown to the accountant in their LinkedIn feed.
Bidding strategies or Bid types
Automated Bid: LinkedIn sets your bid automatically to get more impressions for your budget.
Maximum Cost per Click (Max CPC): You select the maximum dollar amount you're willing to pay per ad click. LinkedIn recommends an amount to you to help you.
Enhanced Cost per Click (Enhanced CPC): You set the bid amount. But LinkedIn can auto-optimize your bid to deliver your ad to those most likely to engage, click, or convert.In comparison, Max CPC will show your ad to everyone within the CPC limit whether they're likely to convert or not.
Maximum CPM (Max CPM): You set the maximum amount you're willing to pay for 1000 impressions of your ad. LinkedIn recommends an amount to you to help you.
Maximum Cost per View (Max CPV): You set the maximum amount you're willing to pay for a single video view (A video view counts as soon as someone starts to watch the view).
Target Cost: You set a target cost per a key result (eg. conversions or leads generated) for your campaign. LinkedIn will automatically set a bid amount to get the most key results.
Cost per Send: This bidding strategy is just used for Sponsored Inmail. It's simply the maximum you're willing to spend to send a message.
Here's a helpful chart to decide when to use which bidding strategy. Over time, you'll be able to learn which works for you and decide on your own!
Bidding strategies and when to use them
There's a lot more to running ads on LinkedIn. But this will have armed you with enough information to get started with your very LinkedIn Ads campaign. Good luck!