Why LinkedIn Ads are Expensive
Why LinkedIn Ads are Expensive ? I mean all the time people say that they are paying like one dollar or two dollars per click on let's say Google Ads or Facebook Ads but when it comes to LinkedIn Ads, they are like paying six to seven dollars per click, sometimes even greater than ten dollars specially when they are targeting CEO's or C Level Executives in the North American Markets which
are the most competitive markets
Now there are various reasons for this , but the main reason is the question of inventory, the question of supply and demand. Now consider how much time do you spend on Facebook versus the time you spend on LinkedIn. So you probably log into Facebook multiple times in a day, so the amount of time that people spent on Facebook is much higher compared to the time that they spent on LinkedIn
So there is a mismatch in terms of supply and demand, so the inventory or supply is very less on LinkedIn , considering the fact that people spend only a very little amount of their time on LinkedIn (Even though it is increasing but still very less). On the other hand the demand specially for the C Level Executives is very high specially among the North American Markets. This results in a mismatch between supply and demand
So if you are advertising in the North American Market the demand is very high and the supply is limited specially for C Level Executives and therefore the Cost Per Click (CPC) is very high for the C Level Executives in the North American Markets
But once you move away from the North American Markets or English Language your CPC tend to drop.
Hence the main reason for high CPC on LinkedIn Ads Platform is the mismatch in supply and demand and that is the reason why LinkedIn Ads are so much expensive compared to other ad platforms like Google Ads or Facebook Ads