How Can Linkedin Spotlight Ads Improve Your ROI and Generate High-Quality Leads?

Linkedin spotlight ads are a dynamic ad format that uses personalization to create a more engaging and relevant advertising experience for viewers. They offer several benefits to advertisers, including increased visibility and engagement, enhanced targeting capabilities, and measurable results.

Placement and Specifications

Spotlight ads are only displayed on desktop devices and are very customizable; they can be tailored based on the Linkedin profile information of individual members, like photo, job title, seniority, and company name. Here, the objective is to provide a more relevant and engaging user experience, ultimately resulting in higher conversion rates for businesses.

Compared to text ads and follower ads, Spotlight ads occupy a larger space in the LinkedIn interface. They are positioned to the right of the feed. Although similar in appearance to other ad formats, Spotlight ads offer a more visually compelling experience and feature personalized elements such as the user’s profile image.

You require several assets to create and effective Spotlight ad, including an ad description (up to 70 characters), an ad headline (up to 50 characters), and a company name (up to 25 characters) which appears when a user hovers over your logo. Additionally, your text is not automatically translated, so you must ensure that your wording is appropriate for your target audience.

You will also need a company image (at least 100 x 100px in JPG or PNG format), and a call-to-action (CTA) button text (up to 18 characters).

LinkedIn supports third-party click-tracking destination URLs via tracking parameters or redirects. If your Spotlight ad leads to a landing page, remember to use quotation marks within the parameter settings to avoid technical errors. Note that special characters (such as < > # % { } [ ] and others), when included in the query string at the end of the URL, may result in a glitch.

Finally, you may choose to include a custom background image (300 x 250px and 2MB or less).

Benefits of LinkedIn Spotlight Ads

By fully understanding the potential of spotlight ads, organizations can develop a more strategic approach to their advertising activities, resulting in a more effective and efficient use of resources.

In this section, we will explore some of the key advantages of spotlight ads, including their ability to provide a more engaging and personalized user experience, their flexibility and customization options, and their potential for generating higher conversions.

1. They generate a higher number of impressions

Due to their placement and personalization features, Spotlight ads have more visibility and are designed to be real attention-grabbers. As a result, they receive high impressions—for example, a budget of $100 can yield up to 10,000 impressions. That said, it’s important to note that impressions do not always translate into clicks. While an ad may be visible on a user’s screen, it may not necessarily capture their attention or prompt them to take further action.

To maximize the impressions of your Spotlight Ads, you should consider targeting the right audience based on factors such as job title, industry, location, and company size. Additionally, you may want to adjust your bid amount to ensure that your ad is competitive and visible to your target audience. It’s also important to note that the success of your Spotlight Ads campaign should not be based solely on impressions. Instead, you should measure other metrics such as clicks, engagement, and conversions to determine the effectiveness of your ad.

2. They demonstrate a higher frequency

The high frequency of Spotlight ads contributes to increased brand awareness and recognition, which ultimately leads to higher engagement and conversions for businesses. Over time, with repeated exposure, you can use them to build familiarity and establish yourself as a prominent player in the industry. This also improves your chances of the user taking a desired action, like filling out a LinkedIn lead generation form or downloading an ebook.

I believe that the placement of a Spotlight ad on the prospect’s screen, coupled with its potential for high frequency, helps project a favorable perception of your brand. The inclusion of a company logo and tagline in the format creates a positive association with the prospect and facilitates ad recall.

3. They are very customizable

Spotlight ads offer several customization options, including the ability to target specific audiences based on various demographics such as job titles, company sizes, and industries. Additionally, businesses can customize their ad copy, images, and headlines to ensure that their messaging aligns with their brand voice.

In comparison to other ad formats, Spotlight ads allow for a fully customizable call-to-action (CTA) button. Aside from the character limit, the CTA field is free-form, enabling businesses to redirect users to any destination URL. When managing paid campaigns for a client, I decided to invest in a Spotlight ad promoting a YT video, where the CTA was tailored to encourage users to take a specific action, such as “Watch video now!” This level of versatility lets you exercise greater control over your advertising strategy and allows a more clearly-defined targeting of prospects. You can also perform A-B testing with different copy and destination URLs to see what your audience is the most receptive to.

Drawbacks of Spotlight ads

Spotlight ads provide businesses with a viable approach for widening their reach and boosting visibility. Nevertheless, being cognizant of their most common limitations is important, so you can make informed decisions about their involvement in the overall outreach plan.

Let’s quickly dive into the potential disadvantages associated with Spotlight ads:

1. High Cost Per Click (CPC)

The cost of Spotlight ads is determined through a bidding system, with businesses setting a maximum bid they’re willing to pay for each click or impression on their ad. LinkedIn then uses an algorithm to determine which ads to display to users based on the bid amount, relevance, and other factors. This means that the cost of each click or impression can vary depending on the level of competition for a particular audience or targeting criteria. Overall, when compared to other ad formats, Spotlight ads are more expensive—for example, the average CPC for Dynamic ads (including Follower and Spotlight ads) is between $6 to $8, which is higher than that of text ads (between $3 to $6).

The higher cost of Spotlight Ads can be attributed to several factors. Firstly, the placement is considered a ‘prime spot’ that leads to higher competition for ad space, driving up the CPC. Secondly, the targeting options for Spotlight Ads are more granular, allowing advertisers to target specific job titles, industries, company sizes, and more. While this can be beneficial for reaching a specific audience, it can also limit the reach of the ad, which can drive up the CPC or Cost Per Impression (CPM). It’s also worth noting that the effectiveness of Spotlight Ads can also justify their higher cost. The positive return on investment (ROI) makes them a valuable tool for businesses looking to reach a professional audience.

2. Low Click Through Rate (CTR)

While Spotlight Ads can be effective at driving engagement with a brand or product, they may not necessarily generate a high volume of clicks. The average CTR for Spotlight Ads is around 0.06% which is slightly higher than that of Text ads at 0.02% and Sponsored Content (comprising of Video ads, Single image, and Carousel ads) at 0.39%.

The CTR of a Spotlight Ad can also be influenced by the relevance and quality of the ad. Remember, LinkedIn uses a relevance score to determine how relevant an ad is to a particular audience, with more relevant ads being displayed more frequently and at a lower cost. Therefore, it’s business imperative to ensure that your ad copy, collateral, and targeting all align with the interests and preferences of your desired audience. Often, many brands are bidding for the same audience, making the ad space more competitive.

For example, let’s say that multiple SaaS brands in the AI industry are interested in running Spotlight ads and are bidding for an audience of C-Suite employees in the Bay Area. It is likely that these ads will also be displayed in the same news feed, making it difficult for any one ad to stand out. It is possible that the CTR for each ad will decrease (to an extent) as the audience becomes overwhelmed with option

How to Run LinkedIn Spotlight Ads

I believe Spotlight ads are like digital billboards; they create brand exposure amongst ideal prospects even when people are not actively engaging with them. Since the CTR is low and the impressions are high, you can choose to pay per click to ensure that not many will click the ad but a ton of them will actually see it.

​​Furthermore, Spotlight ads can be utilized as a part of both cold and retargeting campaigns to improve their brand recognition, generate leads, and increase their conversion rates.

Running Spotlight ads as cold ads

When running Spotlight ads as cold ads, the goal is building brand awareness rather than driving immediate clicks or conversions.

While you may not see a high click-through rate on these types of ads, the value lies in the exposure that your brand receives. With Spotlight ads, your logo and main tagline are prominently displayed to your target audience, making it an effective way to introduce your brand to new prospects.

By having your logo and tagline appear on a consistent basis in the LinkedIn feed, your brand becomes more recognizable and top-of-mind for potential customers. This can have a positive impact on the performance of your other ads, as prospects are more likely to engage with an ad from a brand they recognize.

To get the most out of your LinkedIn Spotlight ad campaign, it’s important to have a solid strategy in place. This includes setting clear goals and KPIs, defining your target audience, and optimizing your ad creative for maximum impact. By regularly monitoring your campaign performance and making adjustments as needed, you can ensure that your Spotlight ads are delivering the results you need.

Running spotlight ads as retargeting ads

With retargeting campaigns, you have the opportunity to reach a more engaged audience who has already demonstrated an interest in your brand. By layering in Spotlight ads with high impression share and frequency, you can create a consistent brand experience for this audience,

For example, if you have a retargeting group of 2,000 people and a budget of $50, you can use Spotlight ads to deliver a high frequency of impressions to this audience. With a frequency of 25 over a period of 30 days, this means that each prospect in the retargeting group will see your Spotlight ad an average of 25 times. While not all of these impressions may result in clicks or engagement, the exposure can still have a significant impact on brand recall and recognition.

In fact, having your logo and messaging constantly appear in front of your target audience will not only drive conversions but also improve the performance of your other campaigns.

To maximize the impact of your Spotlight ads in retargeting campaigns, it’s important to have a clear understanding of your target audience and the messaging that will resonate with them. By aligning your ad creative with the interests and pain points of this audience, you can create a more personalized and relevant

In Conclusion

With their prominent, personalized placement, Linkedin Spotlight ads can be a powerful tool for businesses looking to target a specific subset of working professionals.

However, as with any advertising platform, there are potential disadvantages to running Spotlight ads on Linkedin. The higher cost per click compared to other ad formats may make them less accessible for some businesses, and the potential for lower click-through rates in highly competitive ad environments may require careful optimization and targeting. Despite potential drawbacks, many businesses have found success with Spotlight Ads, especially when used in conjunction with other advertising and marketing efforts. The key is to create visual-first collateral accompanied by a short but persuasive message that resonates with the prospects.

Interested in learning more about how LinkedIn Spotlight Ads can benefit your business? Book a free demo with one of Impactable’s experts!

Our team can help you understand the nuances of running a successful Spotlight ad campaign and answer any questions you may have about advertising on LinkedIn.