Why LinkedIn ads are no longer optional for B2B
On a chilly morning in Toronto, an IT firm, a team of 15, sat around their weekly meeting table. Business was steady, but growth had stalled.
Their sales reps were spending hours cold-calling companies that barely picked up the phone. Trade shows, once their lifeline, had become expensive and unpredictable.
The founder, flipping through a report, said something that struck the room silent:
“Nothing is working for us while our competitors are thriving. Is it time we explore LinkedIn ads, too?”
This story isn’t unique. Hundreds of small B2B businesses across North America and Canada find themselves at a crossroads in 2025.
Referrals and old-school networking aren’t enough. Buyers have shifted online, and LinkedIn has emerged as the primary marketplace for B2B conversations.
1. The Significance of LinkedIn Ads
LinkedIn is no longer just a digital résumé platform. With over 1 billion members globally and 200M+ in North America alone (LinkedIn, 2025), it’s where business decision-makers spend their time.
Here’s what makes LinkedIn ads especially powerful for small B2B companies:
- Decision-Maker Access: Unlike Facebook or Instagram, LinkedIn allows you to directly target C-level executives, managers, and procurement heads.
- Laser Targeting: You can filter by job title, company size, industry, and even specific companies.
- High Buying Intent: Users log into LinkedIn with a business mindset. They’re not scrolling memes; they’re thinking about growth, partnerships, and tools.
Source: LinkedIn Business, 2024
2. Why LinkedIn Is Becoming Non-Negotiable for B2B
Bill Gates once said:
“If your business is not on the internet, then your business will be out of business.”
Fast forward to 2025, and we can tweak this for B2B:
“If your B2B business is not on LinkedIn, it’s highly likely it won’t survive the next wave of the market mood.”
Why? Because B2B buyer psychology is changing big time.
Whether they’re healthcare directors, HR managers, or factory procurement officers, they are researching vendors on LinkedIn before even taking a sales call.
And here’s a striking figure: 89% of B2B marketers use LinkedIn for lead generation, and 62% say it generates them leads, over two times more than the next-highest social channel.
For a small business with limited resources, putting your message in front of the right eyeballs is no longer optional — it’s survival.
3. Types of LinkedIn Ads
If you’re just starting out, it’s easy to feel lost with the jargon. Let’s break it down:
a) Sponsored Content (Feed Ads)
- These are posts that show up in your audience’s LinkedIn feed.
- Can be images, carousels, or videos.
- Best for brand awareness and lead magnets (e.g., free guides, case studies).
b) Sponsored Messaging (InMail Ads)
- Personalized messages delivered straight to your target’s inbox.
- Works well for webinar invites, event promos, or limited-time offers.
c) Text Ads
- Appear on the sidebar or top of LinkedIn pages. Learn more about text ads here.
- Low-cost but less engaging. Good for brand visibility on a tight budget.
d) Dynamic Ads
- Automatically customize the ad with the user’s profile info (like their name or company).
- Great for personalized engagement, though often pricier.
Learn more about Dynamic Ads.
Best Ad Format To Generate Quality Leads on LinkedIn
Sponsored Ads+ LinkedIn Lead Gen Forms is the best LinkedIn ad format that works like a charm to generate quality B2B leads.
Here’s more about the lead generation forms on LinkedIn.
What is a Lead Gen Form on LinkedIn
Lead Gen is a campaign objective under which you can choose an ad format like Single Image Ads/ Video Ads, etc.
While you can create a separate landing page to redirect your ad prospects, such an external redirection feels like an interruption to the LinkedIn users.
So, LinkedIn has come up with a solution. An in-built Lead Generation Form.
- Native LinkedIn forms auto-fill with the user’s profile data- reducing their effort to interact with an ad.
- This is how your potential customer can interact with your ad most fruitfully.
- Perfect for collecting quality leads without forcing prospects off LinkedIn.
Learn more about Lead Gen Forms
At Shivyaanchi, we have been using this (Sponsored Content+Lead Gen Form) format to help small firms get instant lead traction on LinkedIn.
This has been working like magic, specifically when your ad objective is to generate Sales-Qualified-Leads who are actually willing to interact with your ad.
4. How to Set Up LinkedIn Ads (Step by Step)
If you’ve never touched LinkedIn’s ad platform before, don’t worry. Here’s the simplest roadmap:
Step 1: Create a Campaign Manager Account
- Go to LinkedIn Campaign Manager.
- Connect it to your company page.
Step 2: Set Your Objective
LinkedIn will ask what you want:
- Awareness (brand building)
- Consideration (website visits, engagement, video views)
- Conversions (lead gen, sales, sign-ups)
👉 For small businesses, start with Lead Generation.
Step 3: Define Your Target Audience
Here’s where LinkedIn shines:
- Industry: e.g., Healthcare, Manufacturing, SaaS
- Job Title: CEO, HR Manager, Operations Director
- Company Size: e.g., 11–50 employees
- Location: U.S. & Canada
Step 4: Choose Ad Format
Select Sponsored Content (with Lead Gen Form) as your first campaign.
Step 5: Set Your Budget & Bidding
- Minimum daily budget: $10 USD
- Average CPC (cost per click): $5–$9 in North America
- Average CPM (cost per 1,000 impressions): $33–$55
Step 6: Create Your Ad
Keep it simple and benefit-focused. Example:
“Struggling to hire top engineers? Download our 2025 Hiring Playbook — trusted by 250+ HR teams.”
Step 7: Launch & Monitor
Once you hit publish, LinkedIn will start delivering ads within 24 hours.
5. How to Analyze LinkedIn Ad Performance
Launching ads is only half the battle. You need to know whether they’re working.
Here are the key metrics to track:
- CTR (Click-Through Rate): Measures how many clicked your ad. Average is ~0.44% for B2B (Wordstream, 2024).
- CPC (Cost Per Click): What you pay per click. Lower is better.
- Conversion Rate: Percentage of people who submitted a form or signed up. Typical benchmark is 12–20% for Middle of the Funnel Offers and 3-5% for Bottom of Funnel Offers
- Lead Quality: Are the leads decision-makers or just interns?
6. Why LinkedIn Ads Are Worth the Investment
Some small B2B firms hesitate when they hear LinkedIn ads cost more than Facebook or Google. But here’s the reality:
- LinkedIn delivers higher-quality leads.
- Buyers reached on LinkedIn have 2x higher purchase intent (LinkedIn Business, 2024).
- Unlike cold calls, LinkedIn lets you build consistent inbound lead pipelines.
For example, one of our clients, a 12-person HR consultancy in Ontario, Canada, was struggling with referrals. After 3 months of LinkedIn ads, they were generating 15–20 qualified leads per month, with conversations directly from HR directors at companies they wanted to work with.
Check out our portfolio, where small B2B companies cracked big deals with strategically designed LinkedIn ads.
7. Getting Started Without Burning Your Budget
If you’re new to digital ads, start small:
- Run a test campaign for $1000–$1500
- Target a very specific audience (e.g., “Operations Directors in Ontario, Manufacturing industry, 11–50 employees”).
- Use one strong lead magnet (a free checklist, whitepaper, or webinar).
Final Thoughts
For small B2B businesses in North America and Canada, LinkedIn ads are no longer “something only big companies do.” In 2025, they’re the most direct way to reach decision-makers who matter.
Yes, it feels intimidating if you’ve never run a campaign before. But start small, learn the ropes, and you’ll quickly see why LinkedIn ads are becoming the growth engine for B2B firms with lean teams and ambitious goals.
