How to prevent wasted ad spend on LinkedIn

Choosing the wrong LinkedIn Ads agency doesn’t just waste your budget. It delays growth!

For B2B companies, where cycles are often long and each lead matters, the cost of a poor partner isn’t just in dollars. It’s in lost time, internal team frustration, and campaigns that never connect with the right people.

LinkedIn advertising is uniquely suited for B2B when it’s done with precision. That means targeting the right roles, using the right creative, and knowing how to move buyers through a well-intentioned sales process. 

In many cases, it might make sense for a company to hire an agency. This guide outlines how to recognize the signs that an agency might be the right move for you. Then — if you happen to see your org in these signs — we’ll talk about how to know that you’re choosing the right agency. 

When it makes sense to hire a LinkedIn agency

Hiring an agency isn’t always the right move. It only makes sense if:

• You’re spending $5,000/month or more on LinkedIn Ads
• You’re targeting multiple products, personas, or regions, and it’s become a bit cumbersome for the marketing team to keep up with 
• Your team can’t realistically dedicate 20+ hours/week to campaign setup, optimization, and reporting
• You need help with attribution, ABM, CRM integration, or creative testing at scale
• You don’t have anybody on your team who is a LinkedIn specialist (this is not to say that your team can’t do other things really well — it’s just that LinkedIn is a specialty all on its own. LinkedIn is so complex, some marketers dedicate their entire careers to it)

If your campaigns are simple, your budget is small, or you already have internal execution in place, you may be better served with a freelancer, a part-time specialist, or even a generalist hire. Agencies are best when the stakes are higher, the complexity is greater, and you need both strategic and technical expertise—not just help pushing buttons in Campaign Manager.

Can you hire a LinkedIn agency if you’ve never run LinkedIn ads? 

Yes, and in fact this is when it can be the best investment.

A good LinkedIn agency won't expect you to show up with a perfect strategy or fully built campaign infrastructure. Actually, if you do this, don’t be surprised to see the agency start from scratch anyway (it’s not personal, just their methodology). 

A good agency will help you build from the ground up: clarifying your goals, identifying your best-fit audience, and shaping offers that resonate with decision-makers. Look for a partner that treats onboarding as a collaborative process, not a handoff. They should set clear expectations for ramp-up time, be comfortable educating your team as you go, and show patience while early tests generate directional learnings. 

If the fit is right, it’s likely that your team will actually come off of the engagement having learned a lot about LinkedIn ads and feeling more confident in running campaigns by themselves. 

What to look for in a LinkedIn advertising agency 

Not all agencies that offer LinkedIn services actually specialize in it, but many companies will seek out a specialized shop. That is more likely to guarantee a partner who can handle strategy, creative, execution, and analytics without needing to be hand-held.

Platform focus

A LinkedIn-only agency is ideal, but at the very least, LinkedIn should be a core part of their business, not an add-on. Ask how much of their revenue comes from LinkedIn-specific work. Look for teams who are familiar with the nuances of the platform — especially things like audience segmentation, bidding strategies, ad format rotation, and lead routing. Don’t be afraid to ask to meet with the person who will be working on your account on a day-to-day basis while you’re talking to sales and operations teams. 

Industry specialization 

Selling software, services, or anything with a long sales cycle is different from eCommerce. Your agency needs to understand how deals actually close: who’s involved, how long it takes, and what kind of creative makes an impression on a skeptical buying committee.

Be aware of any shop that claims to be an expert in both B2C and B2B. This is possible but unlikely. 

Reporting style 

Whenever you sign up for an engagement with an agency or a freelancer (or basically anything that is significant on your bottom line), it’s important to be able to prove ROI. This means you need visibility into performance that ties back to sales not just impressions and CTR. Ask how they report on lead quality, pipeline impact, and budget pacing. 

At minimum, expect weekly or biweekly updates, with full access to your Campaign Manager and CRM data. Best case scenario, they can give you access to a dashboard that you can reference at any time (like a Looker Studio dash). 

Defined roles

Good agencies build cross-functional teams. That means a strategist who sets direction, a campaign manager who handles execution, a creative team who develops the assets, and an analyst who interprets the data. Ask about how your prospective agency staffs their accounts. If it’s all one person, corners will be cut.

Clear pricing and terms

You should understand exactly what you’re paying for, and what happens if you decide to stop. Be wary of long lock-in periods, vague line items, or fees for things like basic reporting or asset access.

However, keep in mind that it can sometimes take months for get results from LinkedIn advertising, so you might want to budget for a few anticipatory months before you get true ROI. 

Agency red flags to watch for 

• They treat LinkedIn as “just another paid channel”
  
• Their campaign optimization only includes bid adjustments
  
• They use templated, generic reporting
  
• The agency won’t give you admin access to your own ad account
• They talk about results in terms of "leads generated" but don’t mention anything about sales quality (a successful agency partnership requires a willingness to work with BOTH the sales and the marketing teams — not one or the other)
• They don’t have a unique methodology, thought process, or philosophy when it comes to LinkedIn
  

Agency green flags to watch for 

• They optimize campaigns based on audience quality, funnel stage, and creative performance—not just bid changes
• They treat LinkedIn as a strategic B2B channel—not just another paid platform
• They provide custom reporting that ties directly to pipeline and sales metrics
• They give you full admin access to your ad account and data
• They align with both sales and marketing to measure qualified leads and revenue outcomes
• They share a clear methodology for how they approach LinkedIn strategy and execution
• They onboard your team with collaboration, education, and transparency
• They start with simple, testable campaigns before scaling budget or complexity
• They explain performance in context—using relevant benchmarks and business goals
• They prioritize long-term growth, not just short-term clicks or lead volume

What you should expect to pay 

Here’s a breakdown of standard ranges for serious LinkedIn campaigns. It’s common for agencies to charge a different amount depending on ad spend. 

Some, but not all, agencies may also charge a one-time “set-up fee”, usually within the first month of discovery. 

These are market rates. If an agency is quoting significantly less, you should assume they’re using a templated approach, offshoring execution, or assigning a junior marketer with limited platform knowledge.

Also ask about what's not included. Creative production, landing page support, or tracking setup/CRM integration could cost you extra. 

How to evaluate an agency 

Here’s a process that avoids guesswork and keeps things structured:

Shortlist candidates

Look for 3–5 agencies with visible expertise in LinkedIn and your industry. Prioritize those with a point of view—not just case studies, but a methodology they can explain clearly.

Ask for proposals

‍‍Request a short proposal that includes team structure, sample strategy, pricing, expected timelines, and references.

Check references‍

‍Actually call them. Ask about performance, communication, and how the agency handled unexpected challenges.

Make the call ‍‍

Pick the agency that shows clarity, focus, and alignment—not just enthusiasm. The best partner should be able to explain what success looks like before the first dollar is spent.

What a strong agency relationship looks like 

The best agencies act like an extension of your team. They push back when needed, explain trade-offs, and share data regularly. You know what’s happening with your spend, and you trust the team managing it.

They don’t chase vanity metrics. They focus on qualified leads, cost efficiency, and driving revenue. And they’re not just running ads—they’re helping you figure out what message matters to whom, and how to scale it.

Final thoughts

LinkedIn Ads aren’t for everyone—but for many B2B companies, they’re one of the few paid channels where the right message can reliably reach the right people at the right stage of a deal.

If you're at the point where growth depends on more than just organic reach and warm referrals, it’s time to take the selection process seriously.

Pick the wrong partner, and you’ll waste six months. Pick the right one, and LinkedIn becomes a lever—not a line item.

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After managing over $75 million in LinkedIn ad spend for 150+ leading brands, we've discovered a troubling pattern: the average B2B company spends at least half of their LinkedIn advertising budget on audiences that will never convert. This results in a tragedy of missed opportunities and revenue. 

What's worse, waste of this kind is completely avoidable when the right tactics are implemented.

How LinkedIn spend gets wasted

Nobody sets out to misspend on LinkedIn. In fact, it usually happens as a byproduct of another well-intentioned and even well-thought-out strategy. When we see misspend on LinkedIn, here are the common causes that we usually see: 

1. The "spray and pray" targeting trap

Most agencies cast too wide a net, believing LinkedIn's professional data alone will find the right people. Because they’re self-reported, relying on job titles for targeting on LinkedIn is generally not enough. The only real way to ensure efficient ad spend is by having a list of companies that you’ve manually verified are within your core audience. 

Because they're self-reported, relying on job titles on LinkedIn is generally not enough.

2. The vanity metrics mirage 

High click-through rates feel good, but they don't pay the bills. We've seen campaigns with stellar CTRs that generated zero pipeline because they optimized for curiosity, not intent. 

One caveat to this is that it might be acceptable if you’re running a plan with a mission to generate awareness. But it’s very important that the expectations of these campaigns be set, so that you and those you’re working with don’t expect ROI. 

3. The creative-audience mismatch

Generic messaging + specific audiences = wasted impressions. Your ads might be reaching the right people, but if your message doesn't resonate with their specific pain points, you're just expensive wallpaper in their feed. Good creative is never an afterthought, and mediocre creative almost always is. Trust that your audience can always tell.

4. The attribution black hole 

Without proper tracking from click to close, you can't distinguish between campaigns that drive revenue and those that just drive traffic. To make sure that you can fully oversee the success of your campaign, you should make sure that you have your CRM and your LinkedIn campaigns set up properly (Hubspot is the easiest one to set up!) 

5. The set-and-forget syndrome 

LinkedIn's algorithm changes, your market evolves, but many campaigns remain static. What worked six months ago is probably wasting money today. Automated flows are really enticing, but it’s really important that you keep a close human eye on your campaigns, no matter how much it seems like they can run themselves. 

How to spot wasteful spending on LinkedIn

Step 1: Financial checkup 

You can’t determine whether you’re ROI-positive or not unless you know what being ROI-positive looks like to you. Simply put, you need to know how much a customer is worth to you so you can determine how much you can spend on acquiring each customer.

• What's your actual Customer Lifetime Value (CLTV)?
• What's your acceptable Customer Acquisition Cost (CAC)?
• What's your current LinkedIn CAC vs. other channels?

Step 2: Closed won/closed lost analysis 

We analyze your actual customers. Not who you think they are, but who actually buys:

• Which titles actually sign contracts (vs. just engage with content)?
• What company characteristics predict purchase likelihood?
• What triggered their buying journey?

This data becomes the foundation for eliminating waste. You should only spend money on an audience that has already proven they will buy from you.

You should only spend money on an audience that has already proven they will buy from you.

Step 3: TAM Verification & Segmentation

We manually verify every account in your Total Addressable Market:

• Do they have the budget?
• Do they have the need?
• Are they in a buying cycle?

Then we segment based on likelihood to convert, ensuring your highest spend goes to your highest-probability accounts.

What ad types are the most prone to ad spend waste? 

Ad waste is not as simple as choosing the wrong ad type. The real issue comes from how you target your audience and what you expect from the campaign. Even the most effective ad format can fail if it is shown to people who are unlikely to buy, or if you are measuring success with unrealistic benchmarks. When campaigns are built with broad targeting or poorly defined goals, it is not the ad type that is causing the problem. It is the strategy behind it.

Related: Realistic Guide to LinkedIn Bencharks

To reduce wasted spend, you need to focus on audience quality rather than creative or format. The most successful campaigns are designed around targeting people who have shown intent or a clear connection to your offer. This means refining your audience, testing segments, and using data-driven insights to find the prospects who are most likely to convert. When your targeting matches the customer journey, even simple ad formats can deliver strong results.

Related: How to Build an Audience on LinkedIn

Your expectations also play a critical role. A prospecting campaign is not designed to deliver immediate sales, but it can be highly effective for building awareness and filling your funnel with the right audience for future retargeting. Retargeting campaigns, on the other hand, are better suited for driving conversions, but only if your targeting is precise and your messaging is relevant. By aligning your expectations with the purpose of each campaign, you can reduce wasted spend and get the most out of every advertising dollar.‍

Mini LinkedIn spend audit

Not ready to bring in an agency? Start with these diagnostic questions:

See also: How to Choose a LinkedIn Ad Agency

1. What percentage of your LinkedIn leads become opportunities? If it's below 15%, you have a targeting problem.
2. Can you calculate LinkedIn's true ROI? If not, you're likely wasting money without knowing it.
3. When did you last analyze your closed-won deals for patterns? Ideally, this has happened in the past 4-6 months. Otherwise, your ICP may have shifted due to macro-environmental factors.
4. What percentage of budget goes to Conversation Ads? If it's under 30%, you're missing LinkedIn's most efficient format.
5. How many targeting parameters do you use? More than 5 usually means you're guessing, not targeting.

The Abe difference

Not sure auditing yourself is the right move? Reach out to Abe, and we'll perform an audit for you. We don't just identify waste, we transform it into revenue!

Since 2015, we've managed over $75 million in LinkedIn ad spend for 150+ leading B2B brands. Our Customer Generation methodology has saved our clients an average of 45% on their cost-per-lead while improving lead quality. Get in touch today.

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As a specialized LinkedIn advertising agency, we've managed hundreds of campaigns. At this point, we have a pretty good idea of how much it costs to get results. In this guide, we're sharing real cost data from our campaigns, an overview of how pricing on LinkedIn works, and a guide to setting a budget for your own LinkedIn campaigns. 

Note: for a full overview of costs associated with LinkedIn advertising PLUS a guide on how to assess your results, check out our free Benchmarking report.

LinkedIn ad costs (2025 data) 

Based on our analysis of 500+ campaigns managed through our methodology, here are the median LinkedIn advertising costs for 2025:

• Cost Per Click (CPC): $7.63
• Cost Per Conversion: $549.51
• Cost Per Lead: $932.18
• Cost Per Mille (CPM): $85.24
• Cost Per Video View: $0.51 

Sample monthly LinkedIn advertising budgets

One of the most common questions we get is: "How much should I spend on LinkedIn ads?" The answer depends on your business size, goals, and market maturity. But that answer isn’t terribly helpful. So here is an example of the kind of budgets we usually see, keeping in mind that we’re speaking in broad strokes and the actual budget and allotment will depend on the specific account: 

Startup (<$5,000) 

• Sample campaign mix: 70% lead generation, 30% web traffic
• Targeting: narrow (1-3 job titles, specific industries)
• Creative testing: 2 to 3 variations

Mid-level ($5,000-$10,000)

• Sample campaign mix: 50% lead generation, 30% web traffic, 20% retargeting
• Targeting: medium (3-5 audiences with different messaging)
• Creative testing: 5 to 8 variations with A/B testing

Enterprise (>$10,000)

• 40% lead generation, 25% Account-Based marketing, 20% brand awareness, 15% retargeting
• Targeting: Sophisticated audience layering, multiple TAMs
• Creative testing: continuous testing and variations across all copy and creative

Factors that impact LinkedIn advertising costs

Job titles

• Broad titles (Manager, Director): Lower cost, higher volume
• Specific titles (VP of Sales Operations): Higher cost, better quality
• C-Suite targeting: 40-60% cost premium but higher conversion rates

Company size

• 1-10 employees: Lowest cost, often unqualified
• 11-50 employees: Moderate cost, good for SMB focus
• 51-200 employees: Sweet spot for many B2B companies
• 201-500 employees: Higher cost, enterprise prospects
• 500+ employees: Highest cost, largest deal sizes

Geographic region

• North America: Highest costs, mature market
• Western Europe: 20-30% lower than North America
• Asia-Pacific: 40-50% lower, growing market
• Emerging markets: 60-70% lower, limited targeting options

How ad bids work on LinkedIn

LinkedIn uses a second-price auction model where advertisers compete for ad placements by bidding on actions like clicks or impressions. Your actual cost isn’t just your bid. It’s determined by what it takes to beat the next-highest bidder, plus relevance factors.

 This means you can win auctions at a lower price than your bid if competition is weak, but you’ll pay more in competitive segments. High bids improve delivery by making you more competitive in auctions, but without proper controls, they can drive up average costs quickly. Managing bids carefully is essential to balance delivery volume with cost efficiency.

Guide to LinkedIn bidding strategies 

LinkedIn offers three main bidding options. Each controls how your budget is spent and determines both cost per result and required management effort.

Maximum delivery (automated delivery) 

• How it works: LinkedIn sets bids automatically to get as many results as possible within your budget.
• Cost: typically 10–20% more per result than manual bidding. LinkedIn will pay higher prices in auctions to maximize delivery.
• When it makes sense: when you want volume and don't want to manage bids manually. Useful for new campaigns or when testing audiences.
• Bottom line: You’ll spend your budget quickly and reliably, but at a higher average cost per result.

Manual bidding

• How it works: you specify the maximum amount you're willing to bid for each click, impression, or send.
• Cost: manual bids make it easy to anticipate how much a campaign will cost and keeps you from over-spending. But if your bid is too low, you risk under-delivery.
• When it makes sense: when you want to control costs tightly and don't mind checking in every day and making adjustments.
• Bottom line: less spender, but requires active hands-on optimization.

Cost cap

• How it works: you set a target average cost per result. LinkedIn tries to maximize delivery while staying at or below that cost.
• ‍Cost: Helps heep average costs predictable, but delivery may slow if auction prices rise above your cap.
• When it makes sense: you want to scale campaigns while enforcing a strict cost ceiling.
• Bottom line: balances cost control with delivery. You sacrifice some volume flexibility to keep costs in check.

LinkedIn advertising vs. other platforms

More expensive, but more lucrative

LinkedIn charges a premium price because it’s built to reach valuable decision-makers and professionals. It is the only platform with the innate ability to deliver niche B2B audiences with precise targeting by industry, job title, or company size. These audiences have higher deal values and longer sales cycles. 

It's for this reason that, on the surface, LinkedIn can seem like a more expensive option. However, while this may be true for TOFU (Top of Funnel) costs, our data shows LinkedIn provides better outcomes at the BOFU (Bottom of Funnel) level. This, of course, is what actually affects your bottom line. This is why we recommend LinkedIn as the best platform for teams looking to forgo vanity metrics and instead show ROI.

LinkedIn provides better outcomes at the BOFU (Bottom of Funnel) level. We recommend LinkedIn as the best platform for teams looking to forgo vanity metrics and instead show ROI.

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How to calculate ROI on LinkedIn ad campaigns

To assess LinkedIn advertising ROI for our clients, we use LTV:CAC. LTV (Lifetime Value) refers to the amount that a customer spends over the course of their lifetime. In B2C, this is usually a one-time or recurring purchase. In B2B, it’s usually a monthly subscription cost. 

We then compare that with CAC (Cost of Acquisition). The gold standard is 3:1, i.e., where you get $3 back for every $1 you invest in advertising.

Frequently Asked Questions

How much should I budget for LinkedIn ads per day?

LinkedIn requires a minimum daily budget of $10, but most budgets start at $50-$100 per day.

What's the minimum budget to see results?

For B2B lead generation, we recommend a minimum of $2,000-$3,000 per month. Anything less doesn't provide enough data for optimization or meaningful lead volume. Consumer-focused campaigns might work with lower budgets, but B2B requires higher investment due to longer sales cycles and higher-value prospects.

How do LinkedIn ads charge you?

LinkedIn uses objective-based pricing. You're charged based on your campaign objective:

• Website Visits: Pay per click
• Lead Generation: Pay per lead form submission
• Brand Awareness: Pay per 1,000 impressions
• Video Views: Pay per view (3+ seconds)
• Sponsored Messaging: Pay per message sent

Can you advertise on LinkedIn for free?

No, LinkedIn doesn't offer free advertising like Google Ad Grants. However, you can:

• Post organic content to build audience
• Use LinkedIn's free job posting feature
• Engage in LinkedIn groups and discussions
• Leverage employee advocacy programs

For paid advertising, LinkedIn requires a credit card and minimum daily budgets.

Why are LinkedIn ads more expensive than [insert platform]?

LinkedIn ads cost more because:

• Professional audience: Higher-value prospects command premium pricing
• B2B focus: Smaller audience pool increases competition
• Targeting precision: Ability to target specific job titles and companies
• Platform positioning: LinkedIn positions itself as a premium professional network

The higher cost is often justified by better lead quality and higher conversion rates for B2B companies (see chart above).

How long before I see results from LinkedIn ads?

Timeline expectations:

• Week 1-4: Initial data collection, campaign setup
• Week 4-6 First optimization round, early results
• Month 2-3: Meaningful data, performance trends
• Month 4-6: Optimized performance, scalable results

B2B sales cycles mean you might not see closed deals for 3-6 months, but you should see lead generation within the first month.

LinkedIn advertising isn't cheap, but it doesn't have to break the bank either. The key is understanding that you're paying for quality, not quantity. When executed properly, LinkedIn ads deliver some of the highest-quality B2B leads available.LinkedIn advertising is worth the investment when:

• You're targeting B2B decision-makers
• Lead quality matters more than lead volume
• You have a clear value proposition for professionals
• Your average deal size justifies higher acquisition costs
• You can commit to 6+ months of consistent testing and optimization

Ready to Get Started?

If you're ready to make LinkedIn advertising work for your business, we're here to help. As a specialized LinkedIn advertising agency, we've helped hundreds of companies navigate the platform's complexities and achieve profitable growth.

Our Customer Generation methodology focuses on precision targeting and continuous optimization to maximize your LinkedIn ad ROI. We don't just manage campaigns—we become an extension of your marketing team, providing strategic insights and hands-on execution. Click here to book a call with our friendly sales team.