LinkedIn Text Ads vs Sponsored Content: Which Delivers Better ROI?

LinkedIn Text Ads vs Sponsored Content: Which Delivers Better ROI?

When it comes to LinkedIn advertising, two formats often go head-to-head: Text Ads and Sponsored Content.

Marketers frequently wonder which delivers a better return on investment (ROI), especially in a platform that's B2B-driven and highly professional in tone.

Let’s break down the nuances, pros, cons, and real-world ROI outcomes of these ad types so you can confidently choose the one that suits your campaign goals.

📌 Table of Contents

🔍 What Are LinkedIn Text Ads?

LinkedIn Text Ads are simple, right-column ad formats that feature a brief headline, short description, and small image.

They’re typically displayed only on desktop devices, and rely heavily on direct-response copywriting to generate clicks.

Due to their placement, they are more cost-effective per impression, making them attractive for budget-conscious advertisers.

According to LinkedIn's official ad guide, Text Ads are ideal for B2B lead generation, especially when combined with clear CTAs like “Download Now” or “Contact Us.”

📢 What Is Sponsored Content?

Sponsored Content, on the other hand, appears directly in a user’s LinkedIn feed.

It feels more organic because it looks just like a regular post—except it's promoted to reach a broader audience.

This format supports videos, carousels, single images, and even document uploads, making it visually rich and dynamic.

Sponsored Content allows for precise audience targeting and works seamlessly across desktop and mobile.

It’s the preferred option when you want to tell a story, educate your audience, or build brand awareness.

💰 Cost Comparison: CPC & CPM

In terms of raw cost, LinkedIn Text Ads generally have a lower cost-per-click (CPC) and cost-per-impression (CPM).

Advertisers might see CPCs as low as $2 for Text Ads, compared to $5–$8 for Sponsored Content depending on targeting.

However, lower cost doesn’t always equal better value.

Sponsored Content often justifies its higher cost with better visibility, mobile accessibility, and engagement.

In A/B tests by HubSpot and WordStream, Sponsored Content typically generates 2–3x the engagement of Text Ads.

📈 Audience Engagement and CTR

Engagement metrics tell a compelling story.

Sponsored Content generally sees click-through rates (CTR) ranging between 0.4% to 1.0%, especially with video or carousel formats.

In contrast, LinkedIn Text Ads tend to hover around a 0.025% to 0.08% CTR.

This means even if you get clicks at a lower price, the overall reach and engagement may suffer with Text Ads.

For campaigns with a focus on building relationships or storytelling, Sponsored Content wins hands down.

📊 ROI Comparison and Use Cases

Text Ads may work well for lower-funnel actions like direct lead generation or email list signups—especially if your audience is primarily desktop users.

They’re also easier to A/B test, allowing you to experiment with different headlines and CTAs rapidly.

Sponsored Content, however, delivers higher ROI for awareness, thought leadership, and nurturing leads over time.

It’s ideal for companies with complex offers that require education or multiple touchpoints before conversion.

According to a recent study by LinkedIn Marketing Solutions, brands using Sponsored Content with video achieved 3x more conversions over a 30-day campaign period than those using only Text Ads.

🧠 Final Thoughts

Choosing between Text Ads and Sponsored Content should come down to your objective and audience behavior.

If you're optimizing for cost-efficiency and have a clear CTA, go with Text Ads.

But if you want brand exposure, stronger engagement, and mobile-friendly reach, Sponsored Content is a better investment.

The ideal approach may even involve a hybrid strategy—testing both formats simultaneously and adjusting based on performance data.

To dig deeper into LinkedIn ad strategies and advanced ROI tips, check out the blog below:

🚀 Learn More on Advinform

Whether you're running a startup or scaling enterprise marketing efforts, understanding the dynamics of Text Ads vs Sponsored Content helps you make smarter, ROI-driven decisions.

keywords: LinkedIn Ads, Sponsored Content, Text Ads, B2B Marketing, ROI