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What’s the ROI on LinkedIn Ads for Startups?

4 min read

If you’re a startup founder, you’ve probably heard people say that LinkedIn is “too expensive” for ads. But here’s a better question: What’s the ROI on LinkedIn? Is it worth your budget? Can it really help startups grow?

Let’s explore what makes LinkedIn ads different, how to calculate your return, and most importantly—how to make every rupee or dollar count.

Professional woman working on LinkedIn ads strategy, representing what’s the ROI on LinkedIn for startups in a modern office setting

What’s the ROI on LinkedIn Ads: Understanding the Basics

ROI stands for Return on Investment. It tells you how much money or value you get back compared to what you spend. In simple words:

ROI = (Earnings from Ads – Cost of Ads) / Cost of Ads x 100

Let’s say:

  • You spend ₹10,000 on LinkedIn ads
  • You earn ₹40,000 through the leads you got

Then your ROI is:

(40,000 – 10,000) / 10,000 x 100 = 300%

What’s the ROI on LinkedIn? It depends on your business goals and how smartly you use the platform.


Why Startups Choose LinkedIn Ads

Compared to Facebook and Instagram, LinkedIn is designed for professionals. For B2B startups or service-based businesses, this is powerful.

Unique Benefits:

  • Reach decision-makers like CEOs, founders, and managers
  • Target by job title, company size, location, industry
  • Fewer distractions—people are in a professional mindset

When startups ask, “What’s the ROI on LinkedIn?”, it’s not just about cost per click. It’s about getting quality leads who are more likely to convert into long-term clients.


What’s the ROI on LinkedIn: Cost Breakdown

Yes, LinkedIn ads cost more than other platforms. But the real value lies in the higher intent of your audience.

Average Costs (2025):

  • CPC (Cost per click): ₹400–₹700 (compared to ₹80–₹150 on Facebook)
  • Conversion rates: 5–7% for well-optimized B2B campaigns
  • Lead value: High-ticket services like SaaS, coaching, and consulting get better returns

If you’re a B2B startup selling a product worth ₹10,000+, LinkedIn is your playground.


What’s the ROI on LinkedIn: How to Measure It

Here’s a simple example to show how a startup can measure their LinkedIn ROI:

  1. Ad Spend: ₹15,000
  2. Leads Generated: 50
  3. Conversions (clients): 5
  4. Revenue per Client: ₹5,000

Total Revenue = 5 × 5,000 = ₹25,000

ROI = (25,000 – 15,000) / 15,000 × 100 = 66.6%

Not bad, especially when it brings long-term clients.


What’s the ROI on LinkedIn: 6 Ways to Improve It

Want a better ROI? Follow these strategies:

1. Laser-Focused Targeting

Only target the people who are most likely to buy. Use LinkedIn’s advanced filters: job title, industry, region, etc.

2. Strong, Simple Creatives

Use clear visuals and write headlines that speak to pain points. A/B test different formats (carousel, video, single image).

3. Lead Magnets That Convert

Offer free resources like a checklist, whitepaper, case study, or a webinar. Build trust before selling.

4. Landing Pages that Match

Your ad must connect directly with the landing page. No confusion. One goal. One CTA.

5. Use the LinkedIn Insight Tag

This small piece of code helps you track performance. Know what’s working and improve the weak spots.

6. Retarget Interested Visitors

Someone visited but didn’t sign up? Retarget them with a better offer or testimonial. That second impression might convert them.


What’s the ROI on LinkedIn: Common Mistakes to Avoid

Some startups waste their ad budgets because of simple errors. Avoid these:

  • No clear goal: Know whether you want brand awareness, leads, or signups
  • Ignoring analytics: Data tells you what works. Use it.
  • Poor follow-up: Don’t let leads go cold. Email or call within 24 hours.
  • Too broad targeting: Be specific. Relevance increases clicks and conversions.

What’s the ROI on LinkedIn Ads in 2025: Worth the Spend?

In 2025, LinkedIn has over 1 billion users, with nearly 60% of them in decision-making roles. For startups, it’s no longer an optional platform—it’s a growth engine.

But here’s the truth: ROI on LinkedIn doesn’t happen by luck. It happens by:

  • Knowing your audience
  • Testing different formats
  • Offering real value
  • Following up smartly

Final Thoughts: What’s the ROI on LinkedIn?

LinkedIn ads are not cheap—but the quality of leads is unmatched. If you want fast traffic, go to Instagram. If you want clients who can pay, go to LinkedIn.

What’s the ROI on LinkedIn for your startup? That depends on how strategic, focused, and data-driven your campaigns are.

Start small. Measure everything. Improve every week.

In the end, smart marketing on LinkedIn can give you 3x, 5x, or even 10x returns if you play the long game.

You can also check out our guide on: The Best Internet Marketing Strategy for 2025 – Step-by-Step

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