QUICK SUMMARY:
LinkedIn Advertising is renowned for reaching professional networks, attracting new business opportunities, and driving meaningful results. This article explores essential LinkedIn strategies for B2B lead generation, focusing on how clients use this platform to reach decision-makers. It also covers the top ad formats, an overview of LinkedIn bidding strategies, and tips for creating an effective ad strategy.
Project management software company. Corporate financial services firm. IT consulting agency.
Imagine these are all clients on your roster. What do they have in common? More than likely, it’s a desire to attract a specific type of customer.
We’re not just talking about any ol’ leads, either. They’re looking for B2B customers with job titles like “CEO,” “Marketing Manager,” and “Team Lead.” These are the top-level professionals with the final say on whether to invest in your client’s offerings (or not).
That’s where LinkedIn advertising stands out. This well-established platform is a goldmine for professional networking, connecting with top-level decision-makers, and driving results. In this article, we’ll explore why LinkedIn ads work well for B2B lead generation, along with top formats and advice for strategy creation.
Why LinkedIn Is an Ideal Platform for B2B Lead Generation
LinkedIn isn’t one of those platforms that’s used to try on a fun filter or catch the latest entertainment news. Instead, it’s meant to open doors to business opportunities, encourage virtual networking, and share thought leadership.
For advertisers, it’s the perfect place to reach leaders who are authority figures in their organizations and spearhead purchase decisions.
LinkedIn is one of the top platforms for B2B lead generation due to its precise audience-targeting capabilities. These capabilities make it easier to reach decision-makers and key influencers in relevant industries. The platform's targeting options allow you to tailor campaigns based on specific criteria like job title, industry, company size, and seniority level, ensuring your client’s message reaches the right people.
Taylah Fuchshofer, Account Director, Young Folks
To break it down further, here are some key factors that make LinkedIn an exceptional platform for B2B lead generation:
Professional User Base: LinkedIn has over 1B users, with over 225M users in the US alone. Additionally, there are 67M+ businesses listed on the platform.
Potential For Significant ROAS: Advertisers that use LinkedIn Ads experience two to five times higher ROAS than other platforms.
Easier Access to C-Suite Executives: Consider that 4 out of 5 users are responsible for making decisions at their organizations. Plus, LinkedIn audiences have 2X the buying power of other groups and are six times more likely to carry out a conversion.
Needless to say, LinkedIn advertising is a powerful way to reach professional audiences, especially those with impressive accolades. Once leveraged correctly, there’s vast potential for generating qualified leads and maximizing conversion potential.
4 LinkedIn Ad Types That Work Well for B2B Lead Generation
Now that we’ve discussed why LinkedIn advertising is worth investing in, here are specific ad formats to consider for B2B lead generation.
1. Sponsored Content
Sponsored Content refers to ads that appear directly in a user’s LinkedIn feed. While they seamlessly blend in with organic content, there’s a “Promoted” subscript at the very top. That way, users know it’s part of a paid campaign.
Here’s an overview of top sponsored content types for B2B lead gen and tips for successful execution.
Single Image Ads
As the name suggests, this ad type features a single image with accompanying text, a headline, and a call-to-action (CTA). Essentially, Single Image Ads are meant to encourage engagement, clicks, and conversions directly within the platform.
Some popular CTA options for lead generation include “Sign Up,” “Register,” and “Subscribe.” To get the most out of this ad type, use creatives with an eye-catching color palette, succinct messaging, and relevant imagery.
Images grab attention and convey the message of the ads as much as text. If the image doesn't grab the user's attention, they will keep scrolling. Images are also not dependent on autoplay–as many videos are–so it’s even more important to choose an appropriate option.
Drew Hansen, Digital Advertising Manager, PaperStreet
Video Ads
Video Ads are ideal for telling your client’s story or demonstrating how their solution addresses specific pain points. Similar to Single Image Ads, any user can respond directly to a CTA, which fosters interaction and drives lead generation.
In addition to storytelling, video ads are useful to establish authority and encourage brand exploration. For example, a LinkedIn member may follow your client’s LinkedIn company page after viewing their last video ad.
Therefore, it’s a great format to create a strong impression and remain top-of-mind for lukewarm prospects. You never know–they may become a lead or convert later.
Video is the most high-impact way to share your message! In one short video, you can share more information more effectively and creatively, driving greater engagement than any text or static visual.
Michelle van Blerck, Communications Manager, Digital Freak
Here’s another thing: Video is the most promising content type on LinkedIn, with a 34% year-on-year increase. In other words, video ads have the potential to drive engagement and produce lucrative results.
Carousel Ads
Carousel Ads showcase up to ten images within a single ad. Each card has its own headline, ad description, and call-to-action (CTA), making it ideal for B2B clients who want to advertise multiple services or products.
Plus, with multiple ad creatives, there’s an opportunity to tailor offerings that resonate with different target groups.
Document Ads
Document Ads are helpful for B2B clients who want to share and promote educational ad content directly within LinkedIn feeds. This may include whitepapers, case studies, reports, brochures, and eBooks.
As a sneak peek, users can view the first few pages of this document. To gain full access, they’re prompted to provide their contact information in exchange for this resource. Aside from lead generation, it’s an effective way to build credibility, show expertise, and demonstrate thought leadership.
To get the most from this ad type, clearly define your client’s ICP. Then, create content that provides value, addresses pain points, and resonates with their business needs.
Niche down your audience to a specific type of persona—just like you would in the ideal customer profile exercise. Then, start communicating and networking with that audience. After this, start creating content. That's how you win on LinkedIn.
Jesse McFarland, Founder, SpearPoint Marketing
Use a real-time LinkedIn Ads dashboard to track conversion insights, daily budget spend, and other marketing goals. Explore the full range of features in AgencyAnalytics, free for 14 days.
LinkedIn’s dynamic ads feature is another interesting angle for sponsored ads. Within this feature, the viewer’s LinkedIn profile data (including photo, job title, and more) is used to personalize the ad experience and speak directly to each individual target audience member.
2. Sponsored Messaging
Sponsored Messaging Ads allow clients to send targeted messages to potential new leads. In other words, it’s an opportunity for personalized, two-way engagement.
To elaborate further, let’s explore the two types of Sponsored Messaging formats and how they work.
Conversation Ads
Conversation Ads appear at the top of a prospect’s LinkedIn inbox. After engaging with this ad, users are presented with a series of tailored, automated messages that lead to different outcomes.
For example, one lead may be prompted to download a resource after they’ve used specific keywords in response to auto-generated questions. On the other hand, another prospect might receive a CTA to request a demo if they’ve shown strong product interest.
Message Ads
Message Ads (formerly known as LinkedIn InMail) allow B2B clients to send personalized messages directly to targeted LinkedIn users. Unlike Conversation Ads, this format focuses on 1:1 conversations with a single, clear call to action. Therefore, this LinkedIn messaging ad is ideal for introducing your client’s business with an added human touch.
Agency Tip: According to LinkedIn, Tuesdays and Wednesdays are the best days to run Message Ads. So, if you’re exploring this option, it’s definitely worth considering!
3. Lead Generation Forms
Lead Gen Forms are designed to capture contact information in-platform via Sponsored Content or Messaging.
Because of this built-in native design, prospects won’t be directed to an external landing page. Instead, they’ll see pre-filled forms (depending on what previous details they’ve shared on LinkedIn), increasing the chances of submission.
4. Text Ads
Text Ads are a form of PPC or cost-per-impression (CPM) advertising on LinkedIn. These ads consist of a short headline, a brief description, and an optional small image (100x100 pixels).
They typically appear in the right sidebar of desktop interfaces, with the intent to be simple and unobtrusive. These ads must include a destination URL, making it ideal for B2B clients who want increased website visits or form fill outs on a separate landing page.
How LinkedIn's Machine Learning Enhances Ad Targeting
Behind every successful advertising campaign on LinkedIn, there’s a powerful engine of machine learning working to connect businesses with the right audiences. LinkedIn's algorithm optimizes ad targeting through a combination of AI-driven processes and real-time data, helping marketers meet their specific campaign objectives more efficiently.
At its core, LinkedIn uses machine learning to analyze user behavior, engagement history, and professional profiles. This data is constantly refined to improve audience segmentation, helping advertisers reach decision-makers most likely to respond to their message.
Auctions aren’t just about how much you’re willing to pay. As a members-first organization, we want to show content LinkedIn members are interested in seeing and engaging with.
That’s why each update is assigned a relevance score that measures how engaging a given update is for the targeted audience.
An ad’s relevance score is based on Predicted Response Rates. This rate reflects how likely we believe a given member will engage with or convert from a particular ad.
For example, when setting up a LinkedIn advertising campaign, advertisers choose from multiple campaign objectives such as lead generation, brand awareness, or website visits. LinkedIn’s machine learning then evaluates which users are most likely to engage based on the campaign objective, past interactions, and historical data. It doesn’t just rely on basic demographics like job titles and industries. The algorithm continuously learns from user activity—such as clicks, direct messages, and time spent on certain types of content—to fine-tune audience targeting.
Additionally, LinkedIn’s Predictive Audiences feature uses machine learning to forecast which members are most likely to convert, reducing guesswork and boosting ROI.
This feature goes beyond simple criteria like ad auction bid, budget and schedule by identifying key behavioral patterns, giving campaigns a better chance of success from the start. It’s this continuous optimization that helps businesses advertise on LinkedIn with greater confidence, as the platform does much of the heavy lifting.
Finally, LinkedIn’s algorithm also takes into account linkedin advertising costs and ad placements to ensure that each linkedin ad campaign achieves the best possible balance between reach and budget. Whether it's adjusting the frequency of a linkedin ad format like Sponsored Content or determining optimal bidding strategies, the platform uses machine learning to maximize performance and minimize wasted spend.
This smarter targeting process is especially important for B2B advertisers who need to reach senior decision-makers efficiently, cutting down on linkedin advertising costs while driving real results. By leveraging these advanced targeting capabilities, businesses can ensure their message is seen by the right audience, without needing to constantly adjust their campaign.
3 Tips for Creating Effective LinkedIn B2B Advertising Strategies
Now that we've covered the top B2B lead gen ad formats, here are the best tips to maximize LinkedIn's advertising potential.
1. Use LinkedIn’s Advanced Demographic Targeting
Here’s a tip: Use advanced targeting criteria to define your client’s audience with precision.
More specifically, LinkedIn’s Predictive Audience feature streamlines the entire targeting process. Using AI capabilities, LinkedIn identifies relevant audience members from the LinkedIn audience network that are the most likely to convert.
This removes some guesswork, allowing your agency to pinpoint qualified leads with less effort. In its early testing phase, LinkedIn members who utilized this feature observed a 21% reduction in Cost Per Lead. In other words, leveraging this targeting capability may lead to greater cost-effectiveness.
For agencies that want more control, LinkedIn’s Matched Audience option is also worth exploring. Matched Audiences work by showing ads to users who are already familiar with your client’s website.
More specifically, the company targeting feature focuses on relevant B2B contacts by factors like name, organization size, and industry. This is a valuable way to drive brand exposure and create effective retargeting ads.
Access a breakdown of the companies that interact with your client’s LinkedIn ads. Analyze campaign performance with ease–try AgencyAnalytics today, free for 14 days.
2. Choose the Right Bidding Strategy
The right bidding approach is a must-have for maximizing your client’s budget, reaching the right audience, and driving results.
Here’s an overview of the bidding strategies available in LinkedIn Ads, along with use case examples.
Strategy | Description | Use Case |
---|---|---|
Strategy Maximum Delivery (formerly Automated Bidding) | Description LinkedIn spends your client’s budget as quickly as possible to achieve an increased number of impressions or clicks. | Use Case Useful for short-term LinkedIn ad campaigns with a time-sensitive offer, consultation, or event (e.g., generating the maximum number of leads for a webinar). |
Strategy Cost Cap | Description With this option, your agency sets the highest cost per result (e.g., cost per lead or cost per click) that a client is willing to pay. Then, LinkedIn's algorithm automatically adjusts bids to achieve results at or below this cap. | Use Case Ideal for keeping within a strict budget. Cost Cap bidding also works well to attract high-ticket leads with greater conversion potential (e.g., a serious prospect booking a demo for premium software). |
Strategy Manual Bidding | Description Manual Bidding means your agency sets a maximum spend amount for each click or impression. It may be a preferred option for experienced PPC managers or driving results for clients in niche-specific industries.
| Use Case Best for agencies that want granular control based on evolving ad performance. For example, say you’re running a targeted campaign for C-level executives. This strategy allows your agency to remain adept and make optimizations as needed. |
3. Use A/B Testing To Choose Optimal Creatives and Ad Copy
A/B testing is useful for comparing variations in ad creatives, copy, and targeting. This strategy ensures that social ad campaigns are continuously optimized for performance.
To get started:
Choose An Objective: Identify what you want to achieve with your client’s LinkedIn ads, such as increased website clicks, form signups, or app downloads.
Decide On A Primary Success Metric: Choose a specific metric to measure ad campaign success (e.g., click-through rate, conversion rate, or cost per lead).
Identify Variables to Test: Choose specific elements to A/B test, such as different headlines, images, videos, or ad copy.
Create Ad Variations: First, create an original ad (i.e., Control Group A). Then, develop another ad with just one variable change (i.e., Variable Group B which includes text and dynamic ads that are similar to the control group).
Split Your Client’s Audience: Use LinkedIn’s A/B testing feature to evenly split your client’s target audience between these two ad variations.
Measure the Outcome: Run this A/B test for a significant period to gather enough data (typically 1 to 2 weeks). Note that this duration may vary depending on your client’s budget and audience size.
Based on this A/B test, adjust your client’s lead gen strategy as needed. This may include optimizing ad creatives, refining audience targeting, or exploring another bidding strategy.
After running ads, create dynamic goals to track progress and maintain data transparency. Try it in AgencyAnalytics–sign up for a free 14-day trial today.
By implementing these steps, you’ll be better positioned to create effective lead gen strategies for your B2B clients.
Now, there’s just one piece of the puzzle left: Monitoring the results. In fact, it’s a must-have for any successful campaign.
We all know that LinkedIn analytics offers a wealth of data. From demographic insights to conversion metrics, there’s a ton of info right at your fingertips. That said, it’s tedious to log into LinkedIn Campaign Manager every time you need to track progress or make ad optimizations.
Plus, there’s not just one client on your roster. When the reporting period rolls around, it’s exceedingly time-consuming to put together a clunky spreadsheet. If you’re manually typing data, it also opens the doors to human errors (which isn’t a good look).
No need to rely on inefficient reporting methods–use an automated tool like AgencyAnalytics instead.
Invest in a System That Streamlines LinkedIn Ads Reporting
Agency growth requires investment.
To successfully retain clients, you’ll need a systematic way to track data and demonstrate ad campaign results. That’s where a platform like AgencyAnalytics comes in! Use it to:
Deliver Professionally Designed Reports: For greater efficiency, try a pre-built LinkedIn template that auto-populates with your client’s metrics. Schedule report delivery in advance to ensure clients receive them like clockwork.
Monitor Real-Time, Visual Data: No two days are the same with ad campaigns. To keep up with evolving changes, use a live LinkedIn Ads dashboard to see exactly what’s happening. Even build a custom dashboard to include additional insights across 80+ platforms.
Automatically Consolidate Data Into a Central Hub: No more logging into LinkedIn Ads Manager just to see what’s happening!
AgencyAnalytics is not just great for LinkedIn Ads reporting. It’s designed to house marketing metrics across all your client campaigns, making it easy to analyze data and paint the bigger marketing picture. Curious to see what it’s about? Sign up for a free 14-day trial.
Written by
Faryal Khan is an experienced digital marketer and brand photographer with 9+ years of experience. With a passion for content creation, she creates value through editorial storytelling, data-driven insights, and captivating visuals.
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