The Definitive Guide to LinkedIn Ads Audience Targeting

Reaching the right audience is paramount for efficient lead generation and pipeline growth. Generic targeting wastes budget and yields poor results. LinkedIn Ads offers unparalleled precision for B2B, but navigating its myriad of options requires expertise.

Drawing from experience managing over $20 million in LinkedIn Ads spend, this guide cuts through the complexity to show you the most effective targeting strategies for reaching your ideal customer profile (ICP) in 2025, ensuring your budget delivers maximum impact.

Laying the Foundation: Basic LinkedIn Ads Targeting

Let's start with the fundamental building blocks within the Audience Attributes section of Campaign Manager under Job Experience:

  • Job Titles: Directly target specific titles like "Chief Marketing Officer," "VP of Marketing," or "Marketing Director." This is precise but can be narrow.
  • Job Function & Seniority: A broader yet powerful approach is combining Job Function (e.g., Marketing) with Seniority (e.g., C-Level, VP, Director). This captures individuals in the right department and influence level, even if their exact title varies (like Chief Growth Officer). This often yields a larger, yet still relevant, audience size compared to just targeting specific titles.

Next, refine your audience based on company attributes:

  • Company Size: Target companies based on the number of employees. This is a reliable attribute as companies often self-report this. Focus on sizes relevant to your ideal customer, perhaps 50-1000 employees, for example. (Note: Avoid using 'Company Revenue' as it's often an unreliable guesstimate by LinkedIn).
  • Company Industries: Select industries relevant to your SaaS solution. Be aware that LinkedIn's industry taxonomy can be broad, with multiple sub-categories. Researching how your target companies classify themselves on LinkedIn can be helpful.

As you layer these attributes, monitor the audience size displayed in Campaign Manager. It will narrow down, reflecting your increasing precision.

Going Deeper: Advanced Targeting Layers

The true power of LinkedIn Ads targeting for B2B lies in layering advanced attributes onto your basic foundation.

  • Skills: Highly underrated! Target individuals based on skills listed on their profile, often validated by others. This helps you find professionals actively involved in specific areas relevant to your offering (e.g., "B2B Marketing," "Demand Generation," "SaaS Marketing"). You can use "OR" or "AND" logic when adding multiple skills.
  • Groups: Target members of specific LinkedIn Groups relevant to your industry, role, or niche. Group members are often highly engaged and self-selected around specific interests. This can provide access to a very focused audience, though group audience sizes can sometimes be small.
  • Member Interests: Target users based on topics and industries they show interest in on LinkedIn. While broader than skills or groups, this can add another layer of relevance.
  • Member Traits: Explore traits like "Recently Started a New Job" or "Recently Promoted," which could indicate potential budget shifts or new initiatives.
  • Demographics: Standard options like age and gender are available, though often less critical for B2B targeting unless your product has a specific demographic slant.
  • Education: Target by degrees or fields of study, useful for certain specialized B2B solutions.
  • Years of Experience: LinkedIn guesstimates this based on profile history. Use with caution, but it can help filter for more senior professionals.
  • Company Growth Rate: Target or exclude companies based on their hiring growth trend. Excluding companies with negative growth can help focus on potentially more stable or expanding prospects.

Essential Exclusions

Just as important as defining who to target is defining who not to target. Use the exclusion feature to filter out irrelevant audiences you might have accidentally included with broader targeting or based on criteria like negative company growth.

Understanding Audience Size

Monitoring your audience size is crucial.

  • Too Large: Your targeting isn't specific enough, leading to wasted spend.
  • Too Small: Your audience will be hard to reach, expensive, and difficult to scale campaigns effectively.

LinkedIn recommends a minimum of 50,000, but campaigns can run with as few as 300. Realistically, 10,000-30,000 can work but may be costly. Aim for a sweet spot, ideally between 20,000 and 200,000, depending on your niche. Always test multiple audiences with different targeting combinations to see which performs best.

Targeting Your Dream Accounts: ABM & Matched Audiences

Have a specific list of target companies or contacts? LinkedIn's Matched Audiences are built for Account-Based Marketing (ABM).

  1. Navigate to 'Plan' -> 'Audiences'.
  2. Create a new Matched Audience (Company or Contact).
  3. For Contact Lists: Download the template and upload a CSV of contacts. Email addresses (personal or work) provide the best match rates. You can also use First Name, Last Name, Job Title, and Company, but match rates may be lower. Allow 24-48 hours for LinkedIn to match profiles.
  4. For Company Lists: Use the Company Page URL for the highest accuracy. Company Website is second best. Company Name alone is the least reliable due to potential duplicates.

Once built, these lists become a highly targeted audience you can use in your campaigns.

Engaging Your Warmest Leads: LinkedIn Retargeting Audiences

Retargeting is essential for nurturing leads who have already shown interest. LinkedIn's retargeting capabilities are powerful:

  • Website Visitors: Target users who visited specific pages or sections of your website (requires the LinkedIn Insight Tag installed). Define timeframes (e.g., last 30, 60, 90 days).
  • Ad Engagers: Retarget users who interacted with your previous LinkedIn ads. This includes:
    • Video viewers (define completion percentage, e.g., 50% watched).
    • Users who performed a chargeable click on image or text ads.
    • Users who engaged with Lead Gen Forms, Conversation Ads, Document Ads, or Event Ads.

Retargeting allows you to serve specific messaging to a highly relevant, warm audience, improving conversion potential.

Saving and Reusing Audiences

Once you've built a high-performing audience, save it! In Campaign Manager, click "Save audience," give it a name, and access it later under 'Plan' -> 'Audiences' -> 'Saved'. This saves significant time for future campaigns.

Leveraging AI: Predictive Audiences

LinkedIn's AI can help you find new prospects similar to your best existing ones. Predictive Audiences can be based on:

  • Matched Audiences: Upload a list of your best customers or highest-intent leads, and LinkedIn will find more people like them. Crucially, ensure your source list is high-quality ("garbage in, garbage out" applies here).
  • Ad Engagers/Conversions: Find more users similar to those who have engaged with your ads or completed a conversion goal (like submitting a Lead Gen Form).

To create one, go to 'Create Audience' -> 'Predictive Audience' and select your source.

Three Critical Campaign Settings to Check

Finally, ensure these default settings are correctly configured to avoid wasted spend:

  1. Location: Set this to "Permanent Location" to ensure you're reaching people actually based in your target geography, not just visiting.
  2. Enable Audience Expansion: Always turn this OFF. Despite the name, it rarely improves performance for precise B2B targeting and can quickly dilute your audience with irrelevant users.
  3. LinkedIn Audience Network: Always turn this OFF. This expands your reach beyond LinkedIn to partner apps and websites, which is typically less effective and harder to control for B2B campaigns targeting specific professionals.

Mastering LinkedIn Ads audience targeting is fundamental to B2B SaaS marketing success. By moving beyond basic options and strategically layering attributes, leveraging Matched and Retargeting Audiences, and verifying key settings, you can ensure your campaigns reach the right CMOs and decision-makers, driving efficient and predictable lead generation.

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