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Now that you know how advertising space is allocated on LinkedIn, it's time to look at the different budget and bidding strategies. The interaction between your budget and bidding strategy is perhaps the most important factor in achieving favorable prices for ads.
On LinkedIn, you can currently choose between a daily budget and a lifetime budget.
Daily budget: Here you specify an amount X that will be invested in your ads daily throughout the day. With the daily budget, you have control over how much money is spent at what time (day). It is not necessary to set an end date for your campaign.
Lifetime budget: Here you specify an amount X that should be spent over the entire campaign duration. The LinkedIn algorithm will then invest the budget dynamically. This means it will sometimes invest more and sometimes less, depending on when it deems it appropriate/promising.
LinkedIn currently offers the following bidding strategies:
Maximum Delivery (Automatic Bidding): This strategy is particularly useful when starting your campaign to get a feel for how much money is needed to compete with other bidders (ad relevance is irrelevant). As the name suggests, LinkedIn automatically bids here – so that your daily budget is used up by the end of the day.
Target Cost: If you want to invest a precise amount X (e.g., €32.47 for 1,000 impressions) for your target, choose the "Target Cost" bidding strategy. LinkedIn will then try to maximize your bid.
Manual Bidding: Once you've established yourself, we recommend the manual bidding strategy. Here, you have the flexibility to choose how much money you want to bid. For example, you can start with a low bid and see if your ads are being shown sufficiently or generating leads. If not, gradually increase the bid to achieve more results. Good to know: If your daily budget is already spent well before the end of the day, either your daily budget is too low or your bid is too high. Make sure your daily budget is always sufficient to bid throughout the day.
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