Determining the right budget for Indeed ads is crucial for recruiters. But how much does an Indeed ad really cost, and how can you set the optimal budget depending on industry and job title? Here we explain in detail the Indeed billing model, algorithm and budget planning – including practical tips for continuous optimization.

1. The Indeed Billing Model – Cost per Started Application (CPSA)

Indeed uses a performance-based billing model called Cost per Started Application (CPSA). With this model, you only incur costs when applicants actually start the application process.

Advantages of CPSA:

• No costs for mere clicks or impressions
• Budget consumption only for real applications
• Clear and efficient control of expenses

2. Campaign vs. Single Posting – why campaigns are more efficient

You can publish Indeed ads as single postings or as campaigns:

Single Posting:

• Limited to a single job ad
• Usually higher CPSA, less algorithmic support

Campaign:

• Multiple ads running in parallel
• Utilize algorithmic advantages, especially the "chimney effect"
• Better overall performance and more efficient budget use

The so-called "chimney effect" describes how successful ads within a campaign improve the performance of less successful ads. Indeed favors campaigns and supports them algorithmically more than single postings.

3. The Indeed Algorithm and Relevance Rating (R-Value)

The Indeed algorithm evaluates each ad based on a relevance value ("R-value") that considers the following factors:

• Ad Quality: Clearly formulated titles, complete job descriptions and timeliness increase relevance.
• Performance: Click-through rate (CTR), number of started applications and interactions increase the R-value.
• Activity: Regular maintenance and updates have a positive effect on visibility.

A high R-value increases the visibility and reach of your ads. Therefore, you should focus specifically on quality and regular updates.

4. Selecting an Optimal Budget – not too low, not too high

A healthy Indeed budget is crucial for recruiting success:

• Too low budget: Leads to low visibility and few applications. CPSA can increase as a result.
• Too high budget: Can cause unnecessary expenses, as additional visibility does not guarantee proportionally more applications.

The optimal budget varies greatly depending on industry, location and complexity of the job title. Use budget calculators and insights tools to set the ideal budget specific to your industry.

5. Ongoing Budget Monitoring and Optimization

Regular monitoring of ad performance is essential:

• Analyze CPSA, number of applications and job placements weekly.
• Continuously optimize budget allocation based on data.
• Shift budgets to ads that show better CPSA and higher performance.

6. Useful Resources – Indeed Hiring Insights & Budget Tools

In addition to our free Indeed budget calculator, Indeed itself offers the excellent tool "Indeed Hiring Insights":

• Provides current labor market data
• Enables precise analysis for budget planning and competitive comparison
• Helps make data-driven decisions

Use these tools to always stay up to date and use your recruiting budget optimally.

Conclusion: Strategic Planning as the Key to Success

Strategic planning and continuous optimization are crucial for successful recruiting on Indeed. Understand and use the CPSA model, run campaigns, optimize your relevance value and use a healthy budget – this way you maximize the performance of your ads effectively and sustainably.