Hi there,
Thanks for reaching out! Happy to give you some initial thoughts on your question about the best advertising channels in the UK.
It’s a common question, but I have to be honest with you – the question itself is probably the first mistake most businesses make. Asking "which channel is best?" is like a doctor asking "which medicine is best?" without diagnosing the patient. The channel isn't the strategy; it's the delivery mechanism. The best channel for a luxury watch brand is going to be completely different from the best channel for an emergency plumber in Manchester. The real work, the stuff that actually determines whether you get a massive ROI or just burn through cash, happens long before you even open an ads manager.
So, instead of just giving you a list of platforms, I'm going to walk you through the exact strategic framework we use. This is the process that lets you answer the channel question for yourself, and it's the foundation for any successful advertising campaign. It all starts with your customer.
TLDR;
- Stop asking "which channel is best?" The right question is "Who is my customer and what is their most urgent problem?" The channel is the last thing you should decide on.
- Define your Ideal Customer Profile (ICP) by their "nightmare scenario" – their deepest pain points, fears, and frustrations – not by sterile demographics like age or location. This is the bedrock of all effective messaging.
- Your offer's only job is to provide undeniable value upfront. Ditch the high-friction "Request a Demo" button for something that solves a small, real problem for them immediately, like a free tool or a genuine strategy session.
- The most important metric you're probably not tracking is Customer Lifetime Value (LTV). Calculating this frees you from the trap of chasing cheap, low-quality leads and allows you to invest intelligently in acquiring high-value customers.
- This letter includes a fully interactive LTV calculator and a visual flowchart to help you apply these concepts directly to your business.
Your ICP is a Nightmare, Not a Demographic
Forget the sterile, demographic-based profile your last marketing hire made. "Companies in the finance sector with 50-200 employees" or "Women aged 25-40 living in London" tells you absolutely nothing of value. It leads to generic, wallpaper ads that speak to no one and get scrolled past without a second thought. This approach is lazy, and it’s why so many campaigns fail before they even start. To stop burning cash, you must define your customer by their pain.
You need to become an obsessive expert in their specific, urgent, expensive, and potentially career-threatening nightmare. Your Ideal Customer Profile (ICP) isn't a person; it's a problem state. What keeps them awake at 3 AM? What conversation with their boss are they dreading? What inefficiency is making them look incompetent in front of their peers?
Let's make this real:
- Your Head of Engineering client isn't just a job title; she's a leader terrified of her best developers quitting out of frustration with a broken, inefficient workflow. Her nightmare is losing top talent to a competitor because of internal chaos.
- For a legal tech SaaS, the nightmare isn't 'needing document management'; it's 'a senior partner missing a critical filing deadline and exposing the entire firm to a multi-million-pound malpractice suit.'
- For a home cleaning service, the nightmare isn't 'a messy house'; it's the overwhelming anxiety and shame of having family visit unexpectedly when the house is a disaster, making them feel like a failure.
See the difference? We've moved from bland facts to raw emotion. When you understand the nightmare, you can craft a message that resonates on a completely different level. Your ad stops being an interruption and starts feeling like a rescue mission.
So, how do you find this nightmare? You have to do the work. It's not glamorous, but it's where the money is made.
1. Talk to your existing customers. Not with a survey, but with a real conversation. Ask them: "Before you found us, what was the biggest frustration you were dealing with? What was the tipping point that made you search for a solution? What would have happened if you hadn't found one?" Listen for emotional words: "frustrated," "worried," "overwhelmed," "stuck."
2. Listen to your sales team's calls. They are on the front lines, hearing the unfiltered pain every single day. What are the common objections and questions that come up? Those are clues to the underlying fears.
3. Read the reviews of your competitors. The one-star reviews are a goldmine of pain points. What are people complaining about? That's a problem you can solve. The five-star reviews are also useful – what specific outcome or feature are people raving about? That's the 'after' state you want to sell.
4. Find their digital "watering holes." Once you've isolated that nightmare, find out where these people congregate online. This isn't for targeting yet; it's for research. Are they in specific subreddits or Facebook Groups like 'SaaS Growth Hacks'? Do they listen to niche podcasts like 'Acquired' on their commute? Do they subscribe to industry newsletters like 'Stratechery'? What they consume tells you what they value and what language they speak. This intelligence isn't just data; it's the blueprint for your entire marketing strategy. Do this work first, or you have no business spending a single pound on ads.
A message they can't ignore
Once you understand the nightmare, you can craft a message that acts like a dog whistle. It’ll be ignored by 99% of people, but it will stop your ideal customer dead in their tracks. Your ad needs to speak directly to their problem, agitate it slightly, and then present your offer as the clear, obvious solution.
The structure of your message will change depending on your business, but the principle is the same. Here are a few frameworks that work:
For a high-touch service business (like a consultancy or agency), you deploy Problem-Agitate-Solve. You don't sell "fractional CFO services"; you sell a good night's sleep. Your ad copy should sound something like this:
BEFORE (Bad): "Expert Fractional CFO Services. We offer financial strategy, forecasting, and reporting for UK businesses. Contact us today."
(This is all about you. Nobody cares.)
AFTER (Good): "Are your cash flow projections just a shot in the dark? Are you one bad month away from a payroll crisis while your competitors are confidently raising their next round? Stop guessing. Get expert financial strategy for a fraction of a full-time hire. We build dashboards that turn uncertainty into predictable growth."
(This is all about their nightmare. It's specific, emotional, and offers a clear path out.)
For a B2B SaaS product, you use the Before-After-Bridge framework. You don't sell a "FinOps platform"; you sell the feeling of relief from a chaotic cloud bill.
BEFORE (Bad): "Our FinOps platform leverages AI to optimise your cloud spend. Features include cost allocation, anomaly detection, and budget alerts."
(Features, features, features. Snooze.)
AFTER (Good): "Your AWS bill just arrived. It’s 30% higher than last month, and your engineers have no idea why. Another fire to put out. (Before). Now, imagine opening your cloud bill and smiling. You see exactly where every dollar is going, and waste is automatically eliminated. (After). Our platform is the bridge that gets you there. (Bridge). Start a free trial and find your first £1,000 in savings today."
For high-ticket physical products, like specialist lab equipment, you have to attack the feature-obsession head-on. Don't just state the spec; state its direct consequence and benefit.
BEFORE (Bad): "Introducing the new SpectroMax 5000. Our mass spectrometer has a 0.001% margin of error and a faster processing speed."
(So what? Why should a busy lab director care?)
AFTER (Good): "Our new mass spectrometer has a 0.001% margin of error. So what? So your lab can publish results with unshakeable confidence, securing more research funding and attracting top talent that other labs can only dream of."
The common thread here is that none of these messages are about the company or the product's features. They are about the customer's transformation from their current 'nightmare' state to a desired future state.
Delete the "Request a Demo" Button
Now we arrive at the most common and catastrophic failure point in all of B2B advertising: the offer. The "Request a Demo" button is perhaps the most arrogant and ineffective Call to Action ever conceived. It presumes that your prospect, who is likely a busy, stressed-out decision-maker, has nothing better to do than book a 30-minute slot in their calendar to be sold to. It is high-friction, low-value, and instantly positions you as just another commoditised vendor begging for their time.
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 solve a small, tangible part of their larger problem, for free, right now.
For SaaS founders, this is your ultimate unfair advantage. The gold standard is a free trial (no credit card required) or a freemium plan. Let them use the actual product. Let them experience the transformation for themselves. When the software itself proves its value by solving a real problem for them, the sale becomes a formality. You aren't generating mediocre Marketing Qualified Leads (MQLs) for a sales team to chase for weeks; you are creating Product Qualified Leads (PQLs) who are already convinced and are now asking you how they can pay.
If you're not a SaaS company, you are not exempt from this rule. You must bottle your expertise into a tool, a piece of content, or an asset that provides instant, tangible value. The offer must be the first step in solving their problem.
- For a marketing agency, this could be a free, automated website audit that instantly shows them their top 3 keyword opportunities and technical SEO issues.
- For a data analytics platform, it could be a free 'Data Health Check' where they upload a sample file and your tool flags the biggest issues in their database.
- For a corporate training company, it could be a free 15-minute interactive video module on 'How to Handle Difficult Conversations with Underperforming Employees' for new managers.
- For us, as a B2B advertising consultancy, it's a completely free 20-minute strategy session where we audit their failing ad campaigns and give them actionable advice they can implement immediately. We solve a small problem for free to earn the right to solve the whole thing.
Stop asking for their time. Start giving them value. Replace "Request a Demo" with "Get Your Free [Valuable Thing]" and watch what happens to your conversion rates.
The Math That Unlocks Growth: How to Calculate Your Customer Lifetime Value (LTV)
This brings us to the "ROI" part of your question. Most people think about ROI in the short term: "I spent £100 on ads today and got £150 in sales, that's a 1.5x ROI." This is a dangerously simplistic view that keeps businesses small. It forces you to chase cheap clicks and low-quality leads because you're scared of spending what it truly costs to acquire a great customer.
The real question isn't "How low can my Cost Per Lead go?" but "How high a Cost Per Lead can I afford to acquire a truly great customer?" The answer lies in its counterpart: Lifetime Value (LTV).
LTV tells you the total profit you can expect to make from an average customer over the entire duration of their relationship with your business. Once you know this number, you can make much smarter, more aggressive decisions about your ad spend. Here's how you calculate it. You only need three metrics:
1. Average Revenue Per Account (ARPA): What do you make per customer, per month (or year)? Let's say it's £500 per month.
2. Gross Margin %: What's your profit margin on that revenue after accounting for the cost of goods sold (COGS) or the direct cost of servicing that client? Let's say it's 80%.
3. Monthly Churn Rate %: What percentage of customers do you lose each month, on average? This is the most critical number. Let's say it's 4%.
Now, the calculation is simple:
LTV = (ARPA * Gross Margin %) / Monthly Churn Rate
Using our example numbers:
LTV = (£500 * 0.80) / 0.04
LTV = £400 / 0.04
LTV = £10,000
In this example, each new customer is worth £10,000 in gross margin to your business over their lifetime. This single number changes everything.
Interactive LTV Calculator
Now you have the truth. A healthy business model often aims for a 3:1 LTV to Customer Acquisition Cost (CAC) ratio. This means for every £3 of lifetime profit a customer brings in, you can afford to spend £1 to acquire them. With a £10,000 LTV, this means you can afford to spend up to £3,333 to acquire a single new customer and still have a fantastic business.
Let's say your sales process converts 1 in 10 qualified leads into a customer. This means you can afford to pay up to £333 per qualified lead. Suddenly, that £250 lead you got from a CTO on LinkedIn doesn't seem expensive, does it? It looks like an absolute bargain. This is the maths that unlocks aggressive, intelligent growth. It frees you from the tyranny of cheap leads and allows you to focus on acquiring customers who are genuinely a perfect fit, even if they cost more upfront.
Finally, We Choose The Channel
Now that we’ve done the actual hard work—defining the ICP's nightmare, crafting a compelling message, creating a high-value offer, and understanding our numbers—choosing the channel becomes almost trivial. The channel is simply the most efficient place to put our message in front of our ICP.
We can split the main channels into two broad categories based on user intent.
1. High-Intent Channels (Capturing Existing Demand)
These are platforms where people are actively searching for a solution to their problem. They are already problem-aware and often solution-aware. Your job here isn't to create demand, but to capture it at the precise moment of need.
Google Search Ads: This is the king of high-intent advertising. When someone's nightmare has reached a boiling point, their first action is often to type it into Google. Your strategy here is to bid on keywords that signal strong commercial intent. You're not targeting broad, informational queries; you're targeting people who are ready to buy.
- Bad Keyword: "how to improve cash flow" (Informational, research phase)
- Good Keyword: "fractional cfo services uk" (Commercial, looking to hire)
- Bad Keyword: "what is saas" (Too broad)
- Good Keyword: "best accounting software for small business" (Comparison/buying phase)
For services businesses, Google is often the best place to start. We've run campaigns for tradespeople like electricians and HVAC companies, and the leads that come from someone searching "emergency electrician near me" are as qualified as they get. The costs per lead might seem high ($60 for an HVAC lead in a competitive area is not uncommon), but the intent is so strong that the ROI is excellent if your sales process is solid.
2. Low-Intent Channels (Creating New Demand)
These are platforms where people are not actively looking for a solution. They're scrolling through social feeds, watching videos, or reading articles. Your job here is to interrupt their pattern with a message so relevant to their unstated "nightmare" that you create demand out of thin air.
A critical warning: Here is the uncomfortable truth about so-called "awareness" campaigns on these platforms. When you set your campaign objective to "Reach" or "Brand Awareness," you are giving the algorithm a very specific, and very stupid, command: "Find me the largest number of people for the lowest possible price."
The algorithm, in its infinite wisdom, does exactly what you asked. It seeks out the users inside your targeting who are least likely to click, least likely to engage, and absolutely, positively least likely to ever pull out a credit card. Why? Because those users are not in demand. Their attention is cheap. You are actively paying the world's most powerful advertising machine to find you the worst possible audience for your product. Always, always, always optimise for a conversion objective (leads, purchases, trials, etc.), even from day one.
LinkedIn Ads: If your ICP is defined by their job title, industry, company size, or specific company name, LinkedIn is your playground. It's expensive, there's no way around that. But the targeting is unparalleled for B2B. You can get your message in front of the exact decision-makers you identified in your ICP research. We've seen great success generating high-quality B2B leads here, for example, getting a $22 CPL for B2B software decision makers, which is fantastic value when the LTV is in the tens of thousands.
Meta Ads (Facebook & Instagram): This is the powerhouse for most B2C businesses and can be surprisingly effective for B2B if your ICP is a small business owner ("business page admins" targeting) or can be defined by strong interests. Because you don't have the job title data of LinkedIn, your ad creative has to do the heavy lifting of calling out your ICP. The ad's message must pre-qualify the audience. We ran a campaign for a B2B software targeting small businesses on Meta and generated over 4,600 registrations at just $2.38 each because the offer and messaging were perfectly aligned with the audience's pain points.
Google Ads / Search
Meta Ads / LinkedIn Ads
This is the main advice I have for you:
To truly identify the top advertising channels for your business, you need to stop thinking about channels and start thinking about strategy. The platform is the easy part; the hard part is the deep, foundational work that makes the ads effective in the first place. Here is a summary of the actionable steps you need to take.
| Step | Action Required | Why It Matters |
|---|---|---|
| 1. Define the Nightmare | Interview customers, listen to sales calls, and research online communities to define your ICP based on their most urgent, expensive pain points. Ditch demographics. | This is the foundation of all effective messaging. Without understanding their true pain, your ads will be generic and invisible. |
| 2. Craft Your Offer | Develop a high-value, low-friction offer (free trial, tool, audit, strategy session) that solves a small, real problem for your ICP upfront. Delete "Request a Demo". | This builds trust and demonstrates your value before asking for a sale, dramatically increasing conversion rates. |
| 3. Calculate Your LTV | Use the formula (ARPA * Gross Margin) / Churn Rate to calculate your Customer Lifetime Value. Determine your maximum affordable Customer Acquisition Cost (CAC). | This frees you from chasing cheap, low-quality leads and allows you to invest confidently to acquire high-value customers. It's the key to profitable scaling. |
| 4. Select Your Channel | Based on your ICP's intent, choose your primary channel. If they're actively searching, start with Google Ads. If not, use LinkedIn (for B2B) or Meta (for B2C/some B2B) to create demand. | Matching the channel to user intent ensures your budget is spent efficiently, reaching the right people at the right time. |
| 5. Launch & Optimise | Launch your campaigns with messaging that speaks directly to the "nightmare". Always use a conversion objective and relentlessly test your creative, targeting, and landing page. | The launch is just the beginning. Continuous, data-driven optimisation is what separates successful campaigns from failed ones. |
The Path Forward
As you can see, this process is significantly more involved than just picking a platform and boosting a post. It requires a deep understanding of strategy, psychology, and data analysis. While this framework gives you the blueprint, executing it flawlessly takes experience. It's easy to misinterpret data, choose the wrong keywords, write ineffective copy, or structure campaigns in a way that wastes budget. These are the kinds of costly mistakes we see businesses make every day before they come to us.
Working with an expert team can help you accelerate this entire process and avoid those pitfalls. We've run hundreds of campaigns across these platforms, from generating over 5,000 software trials on Meta to reducing a client's Cost Per Acquisition from £100 down to just £7. That experience allows us to move faster, make smarter decisions, and ultimately drive a much better return on your investment.
If you'd like an expert pair of eyes on how this framework could be specifically applied to your business, we offer a free, no-obligation 20-minute strategy session. We can take a look at what you're doing now, discuss your goals, and give you some actionable advice that you can walk away with and implement immediately. It's a chance for you to get some real value and for us to show you what we can do.
There's no hard sell, just a genuine conversation about growing your business. If you're interested, feel free to get in touch to schedule a time that works for you.
Regards,
Team @ Lukas Holschuh