When it comes to LinkedIn Ads, success isn’t just about bidding the highest. The LinkedIn Advertising platform’s auction system also considers ad relevance and engagement.
Understanding how it works, especially the role of the Ad Relevancy Score, also known as the Ad Relevance Score, Relevance Score and historically called Quality Score, can help you boost performance and make your budget go further.
In this post, we’ll break down how the bidding system works and why the Ad Relevance Score is key to getting better results.
How the LinkedIn Ads Bidding System Works
LinkedIn Ads operate on an auction-based system, but it’s not as simple as “highest bidder wins.” LinkedIn uses a second-price auction model, like Google Ads.
In this model, the winner will pay a penny above the second-highest bidder. They do not have to pay their full bid. For example, if your max bid price is £10, and the second-highest bid price is £5, you would only be charged £5.01. This approach encourages advertisers to bid their true value while keeping costs competitive.
The Auction Process in Action
Every time a LinkedIn user logs in, scrolls, or refreshes their feed, an auction starts. This happens if they meet the targeting criteria of one or more advertisers. Here’s what happens behind the scenes:
- LinkedIn identifies eligible ads based on the user’s profile and behaviour.
- Each ad is evaluated based on a combination of:
- The advertiser’s bid
- The ad’s predicted engagement (clicks, views, etc.)
- The ad’s Quality Score
A winner is selected based on the total value the ad is expected to deliver to the user, not just the bid amount.
This means that even if your bid is lower than a competitor’s, your ad can still win the auction if it’s more relevant and engaging.
LinkedIn Bidding Strategies Explained
When setting up your campaign, you’ll choose from several bidding options:
Maximum Delivery (Automated Bidding)
- Designed to deliver the highest number of results possible within your full budget.
- Uses machine learning to automatically optimise bids based on your selected campaign objective.
- Ideal for advertisers seeking a hands-off approach with efficient budget use.
Cost Cap Bidding
- Allows you to set a maximum cost per key result (such as a lead, click, or impression).
- LinkedIn’s Campaign Manager uses your cost cap as a benchmark to adjust bids dynamically.
- Useful when you want predictable costs while still allowing for performance optimisation.
Manual Bidding (Enhanced)
- Gives you full control over your bid in the auction.
- You define how much a result (click, impression, or conversion) is worth to your business.
- Best suited for experienced advertisers who want to fine-tune performance and manage costs closely.
Why the Highest Bid Doesn’t Always Win
According to LinkedIn, “LinkedIn uses a modified auction system to determine which ads are shown. The system determines auction winners based on bids, combined with a score based on each bidder’s past content performance and audience engagement. That way, we can make sure advertisers are offering content that will be valuable to our members.”
The platform is designed to prioritise user experience. Showing irrelevant or low-quality ads, even if they come with a high bid, can lead to poor engagement and user dissatisfaction. So, LinkedIn rewards advertisers who create ads that are both valuable to users and aligned with their interests.
In essence, the auction is about total value, not just price. The more relevant and engaging your ad is, the more likely it is to win auctions at a lower cost.
What Is LinkedIn’s Ad Relevancy Score?
The Ad Relevancy Score is LinkedIn’s way of measuring the overall value your ad provides to users. Think of it as a hidden rating system that influences how often your ad is shown and how much you pay for each click or impression.
Each ad is evaluated with a relevancy score, which predicts how effectively it will encourage member interaction and meet your campaign goals. LinkedIn will look at factors such as:
- Expected click-through rate (CTR)
- Predicted likelihood of ad clicks, based on historical performance data
- Landing page experience, including relevance and user-friendliness
In short, LinkedIn rewards advertisers who create high-quality, relevant experiences for users.
How Ad Relevancy Score Affects Your Ad Performance
A high Ad Relevancy Score can significantly reduce your cost per result by improving your ad’s efficiency in LinkedIn’s auction system.
LinkedIn doesn’t just look at your bid in isolation. Instead, it calculates a ‘combined score’ by multiplying your bid by your ad’s relevancy score. The advertiser with the highest combined score wins the auction, meaning their ad is more likely to be shown, even if their bid is lower than a competitor’s.
Example from LinkedIn Training:
- Advertiser A: Bid = $12, Relevancy Score = 4 → Combined Score = 48
- Advertiser B: Bid = $8, Relevancy Score = 9 → Combined Score = 72
In this case, Advertiser B wins the auction despite a lower bid, thanks to a much higher relevancy score.
This results in:
- Lower CPCs and CPMs – reduced costs for clicks and impressions
- Better visibility and placement – your ad may appear more often and in more prominent positions
- Higher ROI – more efficient use of your ad spend through improved performance
To get the most out of your LinkedIn Ads, improving your Relevancy Score should be a top priority. A higher score not only boosts your ad visibility but also reduces your cost per result. Here’s how to elevate your score and maximise your campaign performance:
1. Refine Your Audience Targeting
Precision is everything. LinkedIn offers powerful targeting options including job title, industry, seniority, company size, skills, and more. But too often, advertisers cast the net too wide.
- Be specific: Focus on the exact personas that matter to your business.
- Use matched audiences: Upload contact lists or retarget website visitors to reach people already familiar with your brand.
- Avoid audience overlap: Overlapping segments can lead to internal competition and skewed results.
The more relevant your audience is, the more likely they are to engage, which boosts your Quality Score.
2. Write Compelling Ad Copy
Your ad copy is your first impression. It needs to be clear, concise, and compelling.
- Lead with value: What’s in it for the reader? Highlight benefits, not just features.
- Use natural language: Avoid jargon and speak in a tone that resonates with your audience.
- Include a strong hook: Ask a question, share a surprising stat, or make a bold statement to grab attention.
- Align with the landing page: Ensure your message is consistent from ad to destination.
High engagement rates signal relevance to LinkedIn, which in turn improves your Ad Relevancy Score.
3. Use Strong Visuals and CTAs
Visuals are critical in stopping the scroll. Whether it’s a static image, carousel, or video, your creative should be eye-catching and relevant.
- Use high-quality images: Avoid stock or generic visuals.
- Incorporate branding: Subtle use of logos or brand colours can build recognition.
- Test different formats: Video often performs well, but carousels and single images can be just as effective, depending on the message.
- Include a clear call to action: Tell users exactly what you want them to do, e.g download, register, learn more, etc.
A well-designed creative paired with a clear CTA can significantly increase click-through rates.
4. Test and Optimise
LinkedIn’s campaign manager provides detailed performance metrics; make sure to use them.
- Run A/B tests: Test different headlines, images, CTAs, and formats to see what resonates.
- Monitor engagement metrics: CTR, conversion rate, and dwell time can all indicate ad quality.
- Iterate regularly: Don’t set and forget. Refresh creatives and messaging to avoid ad fatigue.
Continuous optimisation is key to maintaining and improving your Ad Relevance Score over time.
5. Optimise Your Landing Page
The user journey doesn’t end with the click. If your landing page doesn’t deliver, your Ad Relevancy Score will suffer.
- Ensure fast load times: A slow page increases bounce rates and hurts engagement.
- Make it mobile-friendly: A large portion of LinkedIn traffic comes from mobile devices.
- Align message and language: Your landing page should mirror the message in your ad and use the same language. Mismatches, like a German ad linking to an English page, can hurt performance.
- Simplify the conversion path: Reduce friction by using short forms, clear navigation, and visible CTAs.
A seamless post-click experience reinforces the value of your ad and encourages conversions.
Why This Matters for B2B Marketers
In B2B marketing, every penny counts, and LinkedIn is one of the most powerful platforms for reaching decision-makers. But if you’re only focusing on your bid, you’re missing half the picture.
By understanding and improving your Quality Score, you can maximise your budget, outperform competitors, and drive better results, without necessarily increasing your spend.
What This Means for Your LinkedIn Campaigns
LinkedIn’s ad auction isn’t just about who pays the most. It’s about who delivers the most value. By focusing on relevance, engagement, and user experience, you can improve your Ad Relevancy Score and your campaign performance.
Need help navigating LinkedIn Ads or optimising your campaigns? Get in touch with the Molokini team, we’re here to help you make every click count.
