In our latest podcast, we interviewed AJ Wilcox, one of the top experts in LinkedIn advertising and the founder of B2Linked. We discussed the latest strategies, targeting techniques, and best practices to maximize ROI on LinkedIn Ads. Watch the full conversation in the video below, and keep reading for a detailed summary of key takeaways from our discussion.
LinkedIn Ads have become an essential tool for B2B marketers, SaaS companies, and enterprise brands looking to reach key decision-makers. However, the platform is known for its higher costs compared to other digital ad platforms, which raises an important question—is LinkedIn advertising worth the investment?
In this episode of Clarity Digital Pod, host Al Sefati speaks with AJ Wilcox, a leading LinkedIn Ads expert and the founder of B2Linked, to break down the best strategies, targeting methods, and campaign optimizations that can help businesses get the most out of their LinkedIn Ads budget.
For those looking to generate high-quality B2B leads, understand the cost structure, and build an effective ad funnel, this discussion provides valuable insights that can help refine your LinkedIn Ads approach.
Why LinkedIn Ads? Understanding the Cost vs. Value Equation
One of the biggest concerns businesses have about LinkedIn advertising is the cost per click (CPC) and overall budget requirements. LinkedIn is known to have one of the highest CPCs among major advertising platforms, often three to five times higher than Meta or Google Ads.
Here is a quick comparison of average costs across platforms:
- LinkedIn Ads typically range from $10 to $16 per click, sometimes reaching over $20 per click depending on the industry and competition
- Meta (Facebook & Instagram) Ads usually cost $2 to $5 per click, significantly lower than LinkedIn
- Google Search Ads vary widely, with CPCs ranging from $1 to $10 per click based on keyword competition
Given these numbers, many advertisers question whether LinkedIn Ads provide a strong return on investment. The key advantage of LinkedIn is high-quality targeting.
LinkedIn Ads Offer Value of High-Quality Leads
While Meta and Google Ads may deliver cheaper traffic, they often lack LinkedIn’s precise professional targeting capabilities. Many B2B advertisers find that leads from Meta tend to be lower quality, requiring additional filtering and manual qualification.
With LinkedIn, businesses can target based on job title, company size, industry, and seniority, ensuring that every click is a potential buyer or influencer in the decision-making process.
Who Should Invest in LinkedIn Ads?
AJ Wilcox recommends LinkedIn Ads for companies with a high customer lifetime value (LTV), generally over $10,000 per customer. Businesses that sell enterprise software, high-ticket consulting, professional services, or complex B2B solutions are ideal candidates for LinkedIn advertising.
How to Optimize LinkedIn Ad Targeting for Maximum Efficiency
A critical mistake many advertisers make is relying on LinkedIn’s default targeting settings, which often waste budget on audiences that are less relevant or lower quality.
Key Targeting Settings to Adjust Immediately in LinkedIn Ads
- Fix Location Targeting
- LinkedIn automatically sets location targeting to “Recent or Permanent,” which includes people who recently visited a location but may not actually live or work there
- Change this setting to “Permanent” to ensure your ads reach only those who actually reside in your target location
- Disable Audience Expansion
- By default, LinkedIn enables Audience Expansion, which allows LinkedIn to expand your targeting to similar users, reducing precision and diluting lead quality
- Uncheck this option to maintain strict control over your audience and avoid irrelevant clicks
- Avoid LinkedIn Audience Network (LAN)
- LinkedIn provides an option to extend ads outside the LinkedIn platform, displaying them on partner sites and apps
- This often results in lower-quality traffic because these impressions lack professional intent
- Disable LAN unless you have a specific, strategic reason to use it
- Switch to Manual CPC Bidding
- LinkedIn defaults to Maximum Delivery Bidding, which gives LinkedIn full control over bid amounts, often leading to higher CPCs
- Use Manual CPC Bidding to set a maximum cost per click and avoid excessive ad spend
By adjusting these settings, advertisers can improve targeting precision, control costs, and increase ROI.
The Three-Stage LinkedIn Ads Funnel: How to Move Prospects Toward Conversion
Many businesses struggle with converting cold LinkedIn audiences into qualified leads. AJ Wilcox recommends a structured three-stage ad funnel to gradually warm up prospects before making a conversion request.
- Stage 1: Brand Awareness and Thought Leadership
- At this stage, prospects are cold audiences who do not know your brand
- The goal is to educate and engage them without immediately selling
- Best ad types include video ads, thought leadership posts, and carousel ads
- Content ideas could include an industry trends report, an expert tip post, or a short educational video
- Stage 2: Engagement and Lead Capture
- These prospects engaged with Stage 1 content and are now more familiar with your brand
- The goal is to capture leads by offering valuable gated content
- Best ad types include LinkedIn Lead Gen Forms, ebook downloads, and webinar promotions
- Content ideas could include an in-depth industry report, a webinar invite, or a downloadable checklist
- Stage 3: Conversion and Direct Response
- Prospects in this stage are warmed up and ready for a sales interaction
- The goal is to convert them into customers or sales-qualified leads
- Best ad types include retargeting ads, LinkedIn conversation ads, and direct demo offers
- Content ideas could include a case study, a free trial offer, or a consultation request
This structured multi-touch approach helps prevent ad fatigue while building trust with potential customers.
LinkedIn Ads AI Features and the Future of LinkedIn Advertising
LinkedIn has been integrating AI-powered tools to improve ad creation and campaign performance. Some key AI features include:
- AI copywriting suggestions that automatically generate ad text based on your landing page
- Automated image generation that is expected to roll out soon, allowing users to create AI-powered visuals for ads
- Accelerate AI campaign setup that automatically builds targeting and creatives, though it is not recommended for advanced advertisers
While AI can assist in ad creation, AJ Wilcox strongly recommends keeping manual control, as AI-generated settings often lack precision.
Final Thoughts: Is LinkedIn Advertising Right for Your Business?
LinkedIn Ads can be a powerful tool for businesses that need high-quality B2B leads, but they require strategic execution to be cost-effective.
Businesses that will benefit most from LinkedIn Ads include those with a high customer lifetime value, those that sell B2B products or services, and those that need to reach decision-makers directly.
Businesses that may not be the best fit for LinkedIn Ads are those with very limited budgets or those that rely on high-volume, low-cost transactions rather than longer sales cycles.
Get Expert Help with LinkedIn Ads
If you want to maximize your LinkedIn Ads performance, consider working with LinkedIn Ads experts who can audit your campaigns, refine targeting, and optimize ROI.
Contact Clarity Digital today to discuss your LinkedIn advertising strategy.
