LinkedIn as a key tool for targeted advertising in industrial B2B marketing

Abstract

As digital marketing becomes increasingly focused on reaching the right audience with the right message, many industrial B2B companies are turning to LinkedIn to connect with decision-makers in a more targeted way. While the platform is gaining popularity in professional circles, there is still a lack of in-depth research into how well LinkedIn works specifically for businesses that deal with complex products and long sales cycles. The aim of this study was to evaluate the effectiveness of LinkedIn as a targeted advertising platform in the context of industrial business-to-business (B2B) marketing. Utilising a combined methodology – comprising in-depth interviews of 25 industrial marketing professionals and secondary data from publicly available industry reports – this research assessed LinkedIn’s adoption rates, targeting capabilities, performance metrics, and return on investment. Findings indicate a high adoption level of LinkedIn Ads, with an average of 32% of digital marketing budgets allocated to this channel. Although cost-per-click and cost-per-lead often exceed those of other social media platforms, the quality of leads generated is notably higher, reflecting strong conversion rates (5-9%). The precise segmentation features – particularly targeting by job title, industry, and company size – proved instrumental in reducing lead waste and improving campaign relevance. Despite the learning curve and the need for specialised technical content, most participants reported significant return on investment, largely attributed to reaching highly relevant decision-makers. Best practices for maximising LinkedIn’s potential include dedicated landing pages, thorough A/B testing, and strategic retargeting. These results indicated LinkedIn’s role as an essential platform for industrial B2B marketers aiming to balance higher upfront costs with the long-term value of engaged, high-intent leads. This research’s findings can be used by industrial B2B firms to achieve higher lead quality and conversion rates by strategically allocating budgets to LinkedIn, leveraging advanced targeting and ABM features, and investing in technically robust content tailored to decision-makers.