TLDR;
- Stop targeting demographics. Your ideal customer isn't a job title; they're a person with an urgent, expensive problem. Define them by their nightmare, not their company size.
- Most SaaS ads fail because the offer is arrogant. "Request a Demo" is a high-friction ask. Instead, offer instant value: a free trial, a freemium plan, or a genuinely useful tool that solves a small part of their problem for free.
- Don't just list features. Use proven copywriting frameworks like Problem-Agitate-Solve (PAS) or Before-After-Bridge (BAB) to connect your SaaS to the real-world pain it solves. We've included full ad examples for you to steal.
- Before you spend a single pound, you must know your numbers. Use our interactive LTV calculator inside this article to figure out exactly how much you can afford to pay for a customer (it's probably more than you think).
- The ad format must match the goal. This guide includes a flowchart to help you decide when to use a single image, video, carousel, or conversation ad to get the best results for your specific campaign.
Let's be brutally honest. Most SaaS ads on LinkedIn are dreadful. They're a sea of corporate blue, jargon-filled headlines, and sterile stock photos of people pointing at whiteboards. They talk about "synergies," "streamlining workflows," and "end-to-end solutions." And they get completely, utterly ignored. Why? Because they make the single biggest mistake in B2B advertising: they talk about themselves.
If your ads are underperforming, it's not because the LinkedIn algorithm hates you or because your budget is too small. It's because your message is forgettable and your offer is weak. You're trying to sell a drill to someone who hasn't even realised they need a hole yet. Over the years, I've managed campaigns for dozens of B2B SaaS companies, from early-stage startups to established players, and I've seen what works and what just burns cash. We've taken clients from a £100 Cost Per Acquisition down to just £7, and generated thousands of trials for others. The secret isn't a magic targeting hack; it's a fundamental shift in how you think about your customer and what you're actually selling.
This isn't another high-level guide full of vague advice. This is a blueprint. I'm going to show you the exact frameworks, calculations, and ad examples that we use to get results. We'll build your strategy from the ground up, starting with the one thing that matters more than anything else.
So, who are you actually selling to? (Hint: It's not a company)
Forget the ideal customer profile (ICP) your marketing team spent a month creating. "UK-based FinTech companies with 50-200 employees" is a useless starting point for an ad campaign. It tells you nothing about the human being on the other end of the screen who has to make a decision. It leads to generic ads that speak to no one. To stop wasting money, you must define your customer by their pain.
Your ICP isn't a demographic; it's a nightmare. It's a specific, urgent, expensive, and potentially career-threatening problem. Your job is to become the world's leading expert on that nightmare.
Let's take an example. Say you sell a FinOps platform that helps companies control their cloud spending.
- The Bad ICP (Demographic): "CTOs and Heads of Engineering at Series B tech companies."
- The Good ICP (Nightmare): "A Head of Engineering who just got a furious email from the CFO because the AWS bill was 40% over budget for the second month in a row. She's now terrified her best developers are going to quit because she has to freeze hiring for a critical project, and she has no idea how to even begin diagnosing the spending spike. She feels powerless and looks incompetent."
See the difference? The second one is a person. She has fears, frustrations, and pressures. Now you can write an ad that speaks directly to her. You're no longer selling a "FinOps platform"; you're selling the end of angry emails from the CFO. You're selling the ability to confidently tell her CEO where every single pound of cloud spend is going. You're selling control in a chaotic situation.
Once you've isolated that nightmare, your targeting becomes laser-focused. Where does this person hang out online? She probably listens to niche tech podcasts like 'Acquired' on her commute. She reads newsletters like 'Stratechery' to stay ahead. She's a member of tech leadership Slack communities. She follows people like Gergely Orosz or Charity Majors on social media. This is the intelligence that fuels your targeting strategy. This is how you find your people in a competitive market, whether you're targeting businesses in the City of London or tech hubs across the globe. You can find out more about this in our full London B2B SaaS advertising blueprint. Do this work first, or you have no business spending money on ads.
How much should a lead *really* cost?
So many founders get fixated on the wrong metric. They panic when they see a £50 or £100 cost per lead (CPL). The real question isn't "How low can my CPL go?" but rather "How high a CPL can I afford to acquire a fantastic customer?" The answer is locked inside another metric: Customer Lifetime Value (LTV).
Understanding your LTV is the single most empowering calculation you can make in your business. It transforms your advertising from a cost centre into a predictable growth engine. It's what allows you to confidently spend £300 to acquire a lead, knowing that lead will turn into a £10,000 customer.
Here's how you calculate it. We'll need three numbers:
- Average Revenue Per Account (ARPA): What's the average amount a customer pays you each month?
- Gross Margin %: After your cost of goods sold (COGS), what percentage of that revenue is profit? For most SaaS, this is high, often 80-90%.
- Monthly Churn Rate: What percentage of your customers cancel their subscription each month? Be honest here.
The formula is simple: LTV = (ARPA * Gross Margin %) / Monthly Churn Rate
Let's plug in some numbers. Say your ARPA is £400, your Gross Margin is 85%, and your monthly churn is 5%.
LTV = (£400 * 0.85) / 0.05
LTV = £340 / 0.05 = £6,800
In this scenario, each customer you acquire is worth £6,800 in gross margin over their lifetime. A healthy LTV to Customer Acquisition Cost (CAC) ratio is at least 3:1. This means you can afford to spend up to £2,266 (£6,800 / 3) to acquire a single new customer. If your sales process converts 1 in 10 qualified leads into a customer, you can afford to pay up to £226 per lead. Suddenly that £100 CPL doesn't seem so scary, does it? It looks like an absolute bargain.
This is the maths that unlocks aggressive, intelligent growth. Use the calculator below to find your own numbers.
What ad format should I actually use?
LinkedIn gives you a few different ways to get your message out there, and choosing the right one is important. Too many people just default to a single image ad without thinking about their goal. The format you choose should match what you want the user to do.
Here’s a quick breakdown of the main contenders for SaaS:
- Single Image Ads: The workhorse. Great for grabbing attention quickly and driving clicks to a landing page. You need a strong image and a killer headline. This is your best bet for getting traffic to a free trial sign-up page or a lead magnet download. Quick and to the point.
- Video Ads: These are fantastic for qualification. Someone who watches a 60-second demo video before clicking is a much more qualified lead than someone who just clicks an image. Use them to tell a story, show the product in action, or feature a customer testimonial. Costs might be higher, but lead quality is often much better.
- Carousel Ads: Perfect for when you need to explain a multi-faceted product or showcase a few different use cases. You can break down your features into digestible slides or tell a sequential story. They can be really engaging if done well.
- Conversation Ads: These are a different beast entirely. They land directly in a user's LinkedIn inbox and allow for a 'choose your own adventure' style interaction with buttons. They can feel more personal, but also more intrusive. They can work for high-ticket sales or booking demos if your targeting is spot on, but they can also be expensive. In our experience, they can be tricky to get right, but we have a guide if you're looking for help with using conversation ads to generate demos.
It can be tough to decide which to use. So, I've put together a simple flowchart to help you choose the right format based on your campaign's primary objective.
Ad copy that doesn't suck: Steal these frameworks
Right, now we get to the core of it. You can have the perfect audience and the right format, but if your words are weak, you'll fail. Good ad copy isn't about being clever; it's about being clear. It needs to connect with the 'nightmare' we identified earlier and present your solution as the only logical escape.
Here are two of the most effective frameworks for B2B SaaS. Dont just read them, use them.
Framework 1: Problem-Agitate-Solve (PAS)
This is a classic for a reason. It's direct, empathetic, and powerful. You're not selling a service; you're selling a good night's sleep.
- Problem: State the nightmare. Hit them with a pain point they know all too well. Use their language.
- Agitate: Pour salt on the wound. Remind them of the consequences of inaction. What happens if this problem continues?
- Solve: Introduce your product as the clear, simple solution.
Example for a Cybersecurity SaaS (targeting IT Managers):
Headline: One careless click. That's all it takes.
Ad Text:
(Problem) Are you constantly worried about an employee clicking a phishing link and unleashing ransomware on your network? You've done the training, but the risk never goes away.
(Agitate) Imagine the 3 AM call. Critical systems are down, data is encrypted, and the business is grinding to a halt. It's not a matter of *if*, but *when* a sophisticated attack will slip through.
(Solve) Our platform automatically isolates and neutralises threats *before* they can execute. Get real-time protection that doesn't rely on your team being perfect. Secure your free trial today.
Framework 2: Before-After-Bridge (BAB)
This framework is about painting a picture. You show them the miserable 'before' state and the blissful 'after' state, then position your product as the bridge that gets them there.
- Before: Describe their world right now, with all its frustrations and problems.
- After: Paint a vivid picture of what their world looks like after using your product. Focus on the feeling, not just the features.
- Bridge: Introduce your product as the simple way to get from Before to After.
Example for a Project Management SaaS (targeting Agency Owners):
Headline: Stop guessing where your projects really stand.
Ad Text:
(Before) Your day is a mess of Slack messages, overflowing email inboxes, and spreadsheets that are out of date the second you close them. You have no clear view of team capacity, and you're constantly chasing people for updates just before a client call.
(After) Imagine opening one dashboard and seeing the exact status of every project, who's working on what, and which clients are most profitable. You feel in complete control. Your team is happy and your clients are impressed.
(Bridge) Our platform is the bridge to get you there. It's the single source of truth for creative agencies. See how it works with a 14-day free trial.
Writing compelling copy is an art, and it's especially nuanced in the UK market. For a more in-depth look, we've put together a specific guide on mastering UK B2B ad copy that you might find helpful.
For god's sake, delete the "Request a Demo" button
Now we arrive at the most common, and most fatal, failure point in all of B2B advertising: the offer. The "Request a Demo" button is probably the most arrogant Call to Action ever created. It presumes your prospect, a busy decision-maker, has nothing better to do than schedule a 45-minute meeting to be sold to. It's high-friction, low-value, and immediately positions you as just another commodity vendor.
Your offer's only job is to deliver a moment of undeniable value—an "aha!" moment that makes the prospect sell themselves on your solution. It must be as frictionless as possible.
For SaaS founders, you have an incredible advantage here. Your best offers are:
- A truly free trial (no credit card): This is the gold standard. Let them get their hands on the actual product. Let them experience the transformation firsthand. When the product itself proves its value, the sale becomes a formality. You're not generating Marketing Qualified Leads (MQLs) for a sales team to chase; you're creating Product Qualified Leads (PQLs) who are already convinced.
- A freemium plan: Even better. Let them use a core version of your product forever. This removes all buying pressure and builds a massive top-of-funnel you can nurture and upsell over time. Slack and HubSpot are masters of this.
If you can't offer a trial or freemium plan, you are not exempt. You must package your expertise into an asset that solves a small, real problem for free. This earns you the right to solve their bigger problems later.
- For a data analytics platform: A free 'Data Health Check' that scans their database and flags the top 3 biggest issues.
- For a marketing automation tool: A free 'Email Deliverability Audit' that shows them their current score and gives two tips to improve it.
- For us, a B2B advertising agency: A free 20-minute strategy session where we audit a prospect's failing ad campaigns and give them actionable advice they can implement immediately.
The pattern is the same: give, give, give before you ask. Solve a small problem for free to earn the right to charge for solving the whole thing.
How to structure campaigns for predictable growth
Okay, you've got your ICP's nightmare, your LTV, your ad format, your copy, and your irresistible offer. Now, how do you put it all together in LinkedIn Campaign Manager without creating a mess? You need a structure that allows for clear testing and scaling.
Most people make one of two mistakes: they either lump all their audiences into one ad set and hope for the best, or they create dozens of campaigns and can't tell what's actually working. The goal is to seperate your cold prospecting from your warm retargeting.
Here’s a simple, effective structure to start with:
Campaign 1: TOFU (Top of Funnel) - Prospecting
- Objective: Website Conversions (optimising for your free trial or lead magnet).
- Audiences: This is where you test. Create a seperate ad set for each audience hypothesis.
- Ad Set 1: Interest Targeting (e.g., Members with interest in 'SaaS,' 'Venture Capital,' AND Job Function 'Engineering').
- Ad Set 2: Competitor Targeting (e.g., Followers of your main competitors' company pages).
- Ad Set 3: Company List Targeting (Upload a list of your top 100 dream customers).
- Ads: Run 2-3 of your best ads (using the frameworks above) in each ad set. Let LinkedIn's algorithm optimise delivery.
Campaign 2: MOFU/BOFU (Middle/Bottom of Funnel) - Retargeting
- Objective: Website Conversions.
- Audiences: Create ad sets targeting people who have shown interest but haven't converted yet.
- Ad Set 1: Website Visitors (Last 30 Days) - Exclude converters.
- Ad Set 2: Video Viewers (Viewed 50% of your TOFU video ad, last 30 days) - Exclude converters.
- Ad Set 3: Company Page Engagers (Last 90 Days) - Exclude converters.
- Ads: Your ads here should be different. They know who you are. Overcome their objections. Show them a customer testimonial, highlight a specific case study, or offer a limited-time bonus for signing up.
This structure gives you a clean way to see which prospecting audiences are driving the cheapest conversions and allows you to nurture warm leads with a different message. Once you find a winning audience in your TOFU campaign, you can give it its own campaign and a bigger budget. This is the foundation of how you go from spending £50 a day to £5,000 a day profitably. For a deeper look at this, our guide to scaling B2B LinkedIn ads covers this methodology in more detail.
- Optimise for Free Trial / Lead Magnet
- Pain-Based Interests
- Competitor Followers
- Company Lists
- Focus on Problem/Nightmare
- Use PAS / BAB Frameworks
- Drive sign-ups from warm traffic
- Website Visitors (30d)
- Video Viewers (50%+)
- Page Engagers (90d)
- Overcome Objections
- Showcase Testimonials/Case Studies
So what results are actually possible?
This all sounds good in theory, but what does it look like in practice? Over the years, we've run campaigns for a huge variety of SaaS businesses, and while every case is different, there are definately patterns. One of the most common questions I get is "What's a good CPL?". Well, it depends massively on who you're targeting.
For one B2B software client on Meta, we were able to achieve an incredible 4,622 registrations at just $2.38 each. That's a massive volume play.
But for another client needing to reach very specific B2B decision-makers on LinkedIn—a much more expensive platform—we saw a $22 CPL. On the surface, that sounds much worse. But the quality of those leads was exponentially higher, and with a high LTV, that $22 was an incredibly profitable investment.
The most dramatic results often come from optimisation. We worked with a medical job matching SaaS that came to us with a CPA of around £100. Through strategic optimisation on platforms like Meta and Google, we were able to systematically reduce that down to just £7 per user acquisition. That's not a typo. That's the difference between a business that's barely breaking even on its ad spend and one that's scaling profitably.
Your step-by-step action plan
We've covered a lot of ground. It can feel overwhelming, so I've broken down the entire process into a clear, actionable table. Print this out. Use it as a checklist before you launch your next campaign. Don't skip any steps.
| The SaaS LinkedIn Ads Action Plan | ||
|---|---|---|
| Step 1 | Define Your ICP's Nightmare | This is the foundation. If you don't know their specific, urgent pain, your ads will be generic and ineffective. You'll be selling features, not solutions. |
| Step 2 | Calculate Your LTV & Max CAC | This calculation frees you from chasing cheap, low-quality leads. It tells you what you can truly afford to spend to acquire a profitable customer, enabling confident scaling. |
| Step 3 | Craft a High-Value, Low-Friction Offer | Your offer is more important than your ad. A weak "Request a Demo" offer will kill a great campaign. Offer a free trial, freemium plan, or a valuable tool to build trust and generate PQLs. |
| Step 4 | Write Copy Using PAS or BAB | Don't reinvent the wheel. Use proven frameworks that connect emotionally with your ICP's pain and clearly position your product as the bridge to a better future. |
| Step 5 | Choose the Right Ad Format | Match your format to your goal. Use images for quick traffic, videos for better qualification, and carousels for explaining complex products. The wrong format can hinder your campaign's perfomance. |
| Step 6 | Build a ToFu/MoFu Campaign Structure | This structure provides clarity. It allows you to test cold audiences systematically while nurturing warm leads with tailored messaging, preventing wasted spend and enabling effective optimisation. |
Getting this right isn't easy. It takes time, expertise, and a lot of testing. It's a system, not a single tactic. Every piece—the audience, the offer, the copy, the structure—has to work together. If one part is weak, the whole thing can fall apart. This is why many SaaS companies, even with fantastic products, struggle to make paid advertising work.
They get bogged down in the details, test the wrong things, and burn through their budget before they figure out a winning formula. Having an expert partner can dramatically shorten that learning curve and prevent costly mistakes. If you've read this far and feel like you'd rather have a specialist build and manage this engine for you, we can help. We offer a completely free, no-obligation strategy session where we'll look at your business, your goals, and give you a frank assessment of how we can help you grow. Feel free to get in touch to schedule yours.