When running LinkedIn ads, it can be tempting to use LinkedIn’s default bidding option, Max Delivery (Automated), and call it a day. However, if you really want to spend your budget efficiently, we recommend bidding manually and optimizing for clicks. This is the option with the most control and least amount of risk.

If you’ve followed B2Linked or our Founder and CEO, AJ Wilcox, for a while now, you’ll know that a recommendation we often give when using this bidding strategy is to start by bidding low. In our experience, this is the most cost-efficient method, but there are times when this rule can and should be broken.

So when should you bid low and when should you bid high? Let’s dive into it.

BIDDING “THE FLOOR”

So when we talk about bidding strategy, what do we mean when we say “the floor”? The floor is referring to the lowest possible amount LinkedIn will allow you to bid in an ad campaign. The floor is going to be different for every audience but you can find it by simply testing an extremely low bid, such as $1.

If you bid too low, LinkedIn will give you a message that reads “Your bid must be at least X amount”. It will be displayed in bright red text and LinkedIn won’t allow you to create or save your campaign until you adjust your bid. The minimum amount LinkedIn says you can bid is “the floor” for that campaign.

Sometimes, when bidding the floor, you won’t be bidding aggressively enough to be included in the auction. If you’re seeing very few impressions or clicks at the lowest possible bidding amount, gradually increase your bids over the course of a few days until you start seeing clicks and are spending your full daily budgets.

By doing this, you will eventually find the “sweet spot” of winning the auction while also maintaining a lower cost-per-click. Bidding the floor, or starting at the floor and incrementally raising bids until you can find that sweet spot, prevents you from overspending on clicks and is the tried and true approach to saving money on LinkedIn Ads.

WHEN TO BID HIGH

Though our recommendation is to bid low most of the time, the decision to bid high comes down to urgency vs. efficiency. Bidding low allows you to spend your budget more efficiently, as you generate click traffic for as low a cost as possible. Bidding high, on the other hand, is the way to go if you need to spend your budget quickly.

For example, you may be promoting a time-sensitive offer, such as an upcoming event. Starting with an aggressively high bid will help you beat out your competition and spend your full budget at a faster rate. Yes, you’ll spend more per click than if you were to bid low, but you’ll be able to generate click traffic at the pace that you need.

HOW HIGH SHOULD YOU BID?

When creating or editing a LinkedIn ad campaign and selecting your bid, LinkedIn will display a “recommended” bidding range in order to remain competitive with other advertisers. In our experience, this range is much higher than what is necessary to win the auction (as we alluded to earlier when discussing the strategy to bid the floor).

However, if you need to advertise more urgently or spend more rapidly, LinkedIn’s recommended bid or even the higher end of its recommended bidding range is a good place to start. From there, if you want to spend more efficiently, you can monitor performance and lower your bids each day until you find the sweet spot, where you’re generating clicks and spending your full daily budgets while maintaining a lower cost-per-click.

WHICH STRATEGY IS RIGHT FOR YOU?

If your goal is to spend your full daily budgets and get results quickly, then starting your bids high may be the right strategy for you. If you’re looking to save the most money over a longer period of time, stick with bidding low.

What’s been your experience? Which of these strategies has worked best for you? Leave a comment below! And if you’re ever having trouble generating qualified leads at your desired cost, reach out to our team of LinkedIn ad experts here.

Written by McKay Sainsbury

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