Guide to Audience Building on LinkedIn

One of the most common questions we get asked about LinkedIn advertising concerns budget. Specifically, how to not waste said budget. It’s usually voiced along the lines of, “how do we make sure we’re getting the most of the money we spend on LinkedIn?”  

We want to answer this question by talking about the easiest way to waste money on LinkedIn advertisements — poor audience-building.  

If you’re a T-shaped marketer who has worked on a variety of advertising campaigns like Google, Meta, and Reddit, building an audience on LinkedIn is actually pretty counterintuitive. 

Unlike other platforms that are leisure-first, LinkedIn is a business-first platform. With LinkedIn, you’re not casting a wide net and hoping that your message lands with the right people. You’re buying access to real people in real companies who actually want to buy from you.

This mindset shift is essential. If you don't make it and treat LinkedIn like any other campaign, you’ll waste your budget talking to people who will never become customers, no matter how good your copy is or stunning your designs are.

With LinkedIn, you're not casting a wide net and hoping that your message lands with the right people. You're buying access to real people in real companies who actually want to buy from you.

What is an audience in LinkedIn advertising?

An audience is simply the group of people you choose to show your ads to. It’s defined by criteria you set like job titles, industries, company names, seniority, skills, or lists you upload yourself. The idea is to narrow down who actually sees your message so you’re not paying to reach random users. A well-built audience focuses on the real decision-makers and companies you want to do business with, instead of hoping the algorithm will figure it out for you.

How audience impacts spend

One of the most common pitfalls that we see LinkedIn advertisers fall into is spending to “build awareness” without verifying that the audience that they’re advertising to would actually buy from them. 

  • Pull your CRM data.
  • Identify the companies who’ve bought before.
  • Define who you want to buy.

If you can’t define exactly which companies should buy from you, this could mean you’re not quite ready to run paid campaigns. It could make sense to invest more in your other efforts until you’re in a spot to understand your customers better and apply those learnings to the “high ROI” marketing efforts like paid advertising. 

If you can’t define exactly which companies should buy from you, this could mean you’re not quite ready to run paid campaigns.

LinkedIn audience building "do's"

Do use a custom-built list

One of the core principles of our LinkedIn approach at Abe is the TAM (Total Addressable Market) list. A TAM is just a clear, practical list of companies you actually want as customers. It’s not a rough idea or a guess. It’s the real set of businesses that are a good fit for what you sell—based on things like size, industry, budget, and what your past customers look like. If they’re not on that list, they’re not worth paying to advertise to. The whole point is to avoid wasting money talking to companies that will never buy from you.

Do use filters 

Company size is useful as a filter, but it doesn’t tell you who can buy. A 5,000-person company has hundreds of functions. A large company still has entry-level employees. If you target only by company size, you may be paying to show ads to people with no buying authority.

Depending on the client, Abe may apply filters like:

  • Job title (Director, VP, CMO)
  • Seniority level (Manager+, Director+)

…but it really depends on the individual client. It’s all about what best differentiates somebody as a likely buyer (which we figure out during project phase).

Do use exclusion lists wisely

You don’t want to waste budget showing ads to people who will never buy from you. That includes your own employees, your competitors, and companies outside your target market. Excluding them is straightforward and costs nothing to implement, but it keeps your spend focused on reaching real prospects. Adding these exclusions is a basic step that prevents throwing money away on impressions that can’t deliver any value.

Do measure the right metrics 

Clicks and impressions don’t mean much if they don’t lead to sales. It’s not enough to generate awareness with people who can’t or won’t buy. The metrics that matter are qualified leads, pipeline value, and closed-won deals. If you can’t tie your LinkedIn ad spend to those results, you’re not investing in marketing—you’re just burning budget. Use UTM parameters, integrate with your CRM, and track outcomes that actually move the business forward.

LinkedIn audience building "don'ts"

Don’t target based on skills, interests, or research groups 

Filtering by interests, skills, or groups on LinkedIn usually isn’t recommended because those signals just aren’t reliable. Skills are self-added and often exaggerated. Interests are vague and based on limited activity. Groups can be filled with people who don’t match your target at all. If you’re trying to generate real pipeline, you need to know exactly who you’re reaching—their role, company, and buying authority. That level of clarity just isn’t possible with interests or skills.

Don’t rely on vague “awareness” goals without defining next steps

Running campaigns just to “get your name out there” is one of the fastest ways to waste money on LinkedIn. Awareness isn’t bad—but it has to be intentional and sequenced. If you’re paying for impressions without a clear plan to convert that attention into qualified pipeline, you’re funding LinkedIn’s revenue, not yours. Always know exactly who you want to be aware of you and why, and make sure you have the follow-up strategy in place to turn that awareness into real opportunities.

LinkedIn audience building "maybes"

Maybe use LinkedIn matched audiences

LinkedIn’s Matched Audiences is usually the way to go because it cuts out the guesswork. Instead of letting LinkedIn decide who might be a good fit based on vague interests or broad categories, you give it a concrete list of companies or contacts you actually want to reach. That might be your closed-won deals, high-value prospects, or your TAM. It’s more effort up front, but it means your budget goes toward showing ads to people who are genuinely worth your time. If you want control over who sees your ads, matched audiences is the best way to get it. 

Maybe use LinkedIn predictive audience 

Predictive Audiences can make sense in rare cases where you don’t have enough data to build a strong Matched Audience or you’re trying to break into a completely new market. It's not as precise as uploading your own list, but in these situations, letting the algorithm find lookalikes can be better than guessing blindly or sitting on your hands

If you take the time to define your TAM, use precise targeting, leverage matched audiences, and avoid lazy interest-based filters, you’re not just spending money—you’re investing it. And when you exclude the wrong people, measure what matters, and hold your campaigns accountable to real pipeline results, LinkedIn transforms from an expensive awareness channel into one of your highest-ROI growth levers.

By: Team Abe

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