LinkedIn Ads for Local Businesses

At Lillian Purge, we specialise in Local SEO Services and provide actionable tactics on How local businesses can use LinkedIn Ads to attract clients, with a focus on lead generation and professional branding.

LinkedIn is often viewed as a platform for large corporations or recruitment, but it’s also a powerful tool for local businesses. With its ability to target professionals based on location, industry, job title, and company size, LinkedIn Ads allow local service providers to connect directly with the people who are most likely to need their expertise.

This article explores how local businesses can use LinkedIn Ads effectively to attract clients, build relationships, and grow their brand visibility.

Why LinkedIn Ads Work for Local Businesses

LinkedIn is a professional network where decision-makers, entrepreneurs, and working professionals spend time learning, networking, and exploring opportunities. Unlike Facebook or Instagram, where users may scroll casually, LinkedIn audiences tend to have business intent.

For local businesses such as accountants, solicitors, consultants, or marketing agencies, this makes it the ideal platform for generating quality leads and referrals. LinkedIn Ads can help you:

• Reach professionals in your target region.

• Promote your services directly to business owners or decision-makers.

• Build authority and credibility through educational content.

• Generate leads that convert into long-term clients.

Step 1: Define Your Advertising Goals

Before launching a campaign, clarify what you want to achieve. LinkedIn Ads can support several objectives, including:

• Brand awareness (introducing your business to local audiences).

• Website traffic (driving visitors to your site or landing pages).

• Lead generation (collecting contact details from interested prospects).

• Event promotion (encouraging sign-ups for local events or webinars).

Defining your goal helps determine which ad format, targeting options, and budget will work best for your campaign.

Step 2: Identify Your Target Audience

LinkedIn’s targeting capabilities are one of its biggest advantages. You can narrow your audience by:

• Location (city, county, or postcode).

• Industry and company size.

• Job titles, seniority, and skills.

• Interests and professional groups.

For local businesses, location targeting is key. For example, a Bedford-based accountancy firm could target small business owners or finance directors within a 30-mile radius.

To refine your reach even further, you can upload a list of existing clients or email subscribers to create a “matched audience.” LinkedIn will then find similar profiles to help you expand your reach to lookalike audiences.

Step 3: Choose the Right LinkedIn Ad Format

LinkedIn offers several ad formats to suit different goals. For local businesses, the most effective types include:

Sponsored Content

These appear in users’ news feeds as promoted posts. You can share blog articles, videos, or announcements that educate and engage potential clients.

Message Ads

These send direct messages to prospects’ inboxes. They work well for event invitations, consultations, or exclusive offers, but should be used sparingly to avoid appearing intrusive.

Text Ads

These appear in the sidebar and are great for quick awareness campaigns. They’re cost-effective and ideal for testing different messages.

Dynamic Ads

These personalise your message to each user, displaying their name and profile image. They’re highly engaging but best suited for awareness and lead generation campaigns.

Lead Gen Forms

These allow users to submit their contact details without leaving LinkedIn. They’re especially effective for businesses offering consultations, reports, or downloadable guides.

Step 4: Craft a Compelling Message

Your ad content needs to resonate with your local audience. Focus on how your service helps solve their problems rather than just describing what you offer.

Tips for creating effective LinkedIn Ads:

• Keep your headlines short and benefit-driven.

• Use professional imagery that reflects your brand.

• Include a clear call to action, such as “Book a Free Consultation” or “Download Our Guide.”

• Highlight what makes your local business unique, such as community involvement or industry expertise.

The more relevant your message feels to your audience, the higher your engagement will be.

Step 5: Set a Realistic Budget

LinkedIn Ads are priced higher than other social platforms, but the quality of leads is often superior. Costs are typically measured in:

• Cost per click (CPC): £3 to £6 on average.

• Cost per 1,000 impressions (CPM): £6 to £10.

Start small, test your ad performance, and increase your budget gradually once you find what works best. Use LinkedIn’s campaign budget optimiser to manage spending efficiently.

Step 6: Measure Performance and Optimise

LinkedIn’s Campaign Manager provides detailed analytics, allowing you to track performance in real time. Key metrics to monitor include:

• Click-through rate (CTR): The percentage of people who clicked your ad.

• Conversion rate: The number of users who took the desired action, such as filling out a form.

• Cost per lead: How much each new lead costs your business.

• Engagement rate: The level of interaction your content receives (likes, shares, comments).

Use these insights to refine your audience targeting, adjust your message, or test new creatives.

Step 7: Retarget Interested Prospects

LinkedIn allows you to retarget people who have interacted with your ads, website, or company page. By reminding them of your services, you increase your chances of conversion.

For example, if someone clicked your ad but didn’t enquire, you can show them a follow-up ad offering a free consultation or discount. Retargeting helps move warm leads further down the sales funnel.

Step 8: Combine LinkedIn Ads with Organic Marketing

Paid ads perform best when supported by consistent organic activity. Regularly post content on your LinkedIn company page to showcase your expertise and keep your audience engaged. Share:

• Industry insights or updates.

• Case studies from local clients.

• Tips or how-to articles relevant to your field.

• Testimonials and success stories.

A strong organic presence enhances the effectiveness of your paid campaigns by increasing trust and recognition.

Best Practices for LinkedIn Advertising

• Test different ad formats to find what works best.

• Avoid overly promotional language—focus on value.

• Refresh your creatives regularly to avoid ad fatigue.

• Use local keywords in your ad copy for stronger relevance.

• Be patient—LinkedIn Ads often require a few weeks to gather enough data for optimisation.

Common Mistakes to Avoid

• Targeting too broadly and wasting budget on irrelevant users.

• Using generic messaging that fails to connect with local clients.

• Ignoring follow-up opportunities such as retargeting or email outreach.

• Failing to monitor analytics or make adjustments during the campaign.

Avoiding these pitfalls ensures that your ad spend delivers measurable results.

Expert Advice from Lillian Purge

1. Start with clear goals. Know whether you want awareness, leads, or sales.

2. Focus on locality. Use geographic targeting to reach the right audience.

3. Invest in good creative. Visuals and messaging drive engagement.

4. Track and refine. Continuous optimisation improves performance over time.

5. Integrate your efforts. Combine LinkedIn Ads with SEO and email marketing for stronger results.

LinkedIn Ads give local businesses an opportunity to connect directly with professionals who need their services. By targeting the right audience, delivering relevant messages, and continuously optimising your campaigns, you can turn LinkedIn into a powerful channel for generating quality leads and growing your local reputation.

We have also written in depth articles on Common mistakes businesses make with LinkedIn Ads and How to measure ROI from LinkedIn Ads campaigns as well as our Linkedin Advertising Guidance Hub to give you further guidance.