Join Brad Batesole for an in-depth discussion in this video Set a budget and schedule for your campaign, part of Up and Running with LinkedIn Sponsored Content.
- So, we just finished setting up our targeting for our sponsor update campaign. And now we've arrived at out bid, budget, and duration screen. This is where you're going to dial in the specifics of what you're going to be spending, and how you're going to be spending. The first thing that we have available is to choose between a Cost per click and a Cost per impressions campaign. So, Cost per click is going to charge us whenever someone clicks on the add. And the impressions campaign is going to charge us per 1,000 impressions.
Typically, when you're looking to optimize for conversions, you typically want to bid on a Cost per click. And when you're looking for brand awareness, you're typically going to bid on a Cost per impression. Now, this is just a generic statement. This can be very specific to your own goals, and your own niche. So you're going to need to test which brings you the best return on investment. Either biting on a CPC, or on a CPM. When you're just starting out, that CPC tends to be the easiest one to understand and the easiest one to optimize against.
From here, you're going to have to set your bid. And LinkedIn is going to automatically identify your minimum bid based on the information you provided and what the competition is doing currently on LinkedIn. So in this case, LinkedIn is showing us a bid of seven dollars. And this would be the lowest amount that we can spend per click on this campaign. Now you might be looking at that value thinking this is significantly higher than what I've seen on other platforms. And it's because LinkedIn really feels like the quality of the audience is very high.
And your ability to target it so specifically, is going to bring you tremendous value at some of these higher bid numbers. You'll notice that LinkedIn is going to tell you what other advertisers are biding between. Here in this case is between seven dollars and eight dollars and five cents. Now, I can't give you a magic formula for how to identify your bid. The best thing is to set a bid that you feel comfortable with. And then optimize out based on the information that you're seeing. A lot of times what you can do is sort of work backwards.
So you would say, "I need to acquire "this customer for a certain dollar amount". Maybe that's 25 dollars. Well how many clicks can you get for 25 dollars? And what percentage of those clicks are actually going to convert. And as you work on the math, you'll arrive at a number that is your minimum bid. The problem is, if you haven't run any campaigns on LinkedIn before, you're not going to get a good sense of what conversion rates are possible with your target market and your creative material. So what you might want to do is start with a minimum bid or slightly above the minimum bid.
And look at what happens. If you're noticing that things are panning out in your favor well you can continue to increase the bid until you reach a threshold that doesn't work. Or you can reduce the bid or change your targeting to identify a better market that has a better conversion rate. After you set your bid, you'll need to select a daily budget. Now, your campaign spend could be a little bit higher than your daily budget. So you want to factor in the likelihood that you're going to go about 20% beyond this on certain days.
And this is because as your daily budget gets exhausted, LinkedIn's going to wind down the campaigns, and you might still get a few straight clicks that they're going to charge you for. From here you have the option to start either immediately, or you can click in the box in the right-hand side to choose the day that you want the campaign to start. Here I've selected the 4th of September. And notice I could choose the radio option at the top for Cost per impressions. And this is going to change the information below. So now we're going to be biding on a CPM basis.
So I'm paying now 30 dollars per 1,000 impressions. That is the minimum bid, which is the same as the CPC. And you'll also see that bid range for other advertisers. And then you'll notice the daily budget. Now in this case, I get this red air message, because our daily budget is actually under our bid. So this daily budget needs to exceed the bid so we can at least achieve perhaps 1,000 impressions if they're available to us. Now, just because you're paying for 1,000 impressions there isn't a guarantee as to how many impressions you get. You just pay based on that mathematical formula.
I'm going to go back to cost per click. Notice that that set up a daily budget of 25 dollars. There is a minimum budget. Linked it suggesting the minimum here. In this case is 10 dollars. Now, here down below, if I choose show more, this is where you have the option to set some of those hidden criteria. And these are likely important to you as an advertiser. You can choose the End Date if you want this campaign to stop running at a particular time. And I do recommend that you set an end date because all content is going to fatigue. Meaning that all of your creatives at some point going to get a little bit tired.
And there's going to be a date when they'll know that that content is still evergreen to your audience. So select and end date. And it could be for your market. It could be a short window, it could be seven days, or for certain target markets, it could be a lot longer, such as 60 days. You're going to have to do some testing to see what works for you. This is also where you have the opportunity to set your maximum budget. If you just leave the daily budget set, and you don't have an end date, LinkedIn's going to run things indefinitely and continue trying to maximize your daily budget. If you want this campaign to stop at a certain dollar amount, perhaps you've budgeted 500 dollars, you enter in that amount.
And now LinkedIn is going to stop the campaign either when it reaches the end date or when it reaches that total budget. At any time if you want to dive even more into the specifics of how biding and budgeting work, you can select the link I want to learn more about campaign budgeting. Once you've got this dialed in, you'll choose Next. And this is where you have the option to review the campaign. And if you haven't set up your credit card information, this is where you'll go ahead and do that. Simply fill out the information. Select Review order. And follow the promps to get your first sponsor update campaign running.
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