LinkedIn bidding formula
- Always begin advertising using CPC with bids within the recommended range.
- Observe the click-through rate and take the following actions:
- CTR below .35 percent — The ads are poor performers, and you’ll need to try launching new ads until you get above that level.
- CTR between .35 and 1 percent — Your ads are doing great. If your goal is efficiency, lower your bids until the campaign barely spends your daily budget. If your goal is scale, bid up slowly until you get the amount of traffic you want.
- CTR above 1 percent — The ads are real performers. Change your bid type to CPM and bid high (If you don’t bid high, your ads will fall to the second position, where CTRs are appreciably lower and will nullify the benefit of CPM bidding). Remember to watch performance on these closely, as the audience will tire of the ad eventually, and your CTRs will drop (usually between one to three weeks), and you’ll need to refresh your creative to keep your performance up.
Source: LinkedIn Ads: CPC vs. CPM bidding – Stop saying, ‘It depends on your goals’ – Marketing Land