LinkedIn enhances Predictive Audiences with AI-powered targeting updates

LinkedIn has introduced new enhancements to its Predictive Audiences tool, an AI-driven solution designed to help advertisers reach high-intent audiences more effectively. By analysing a combination of first-party data, such as lead generation forms and conversions and the platform insights, the tool automates audience targeting, optimising ad performance and campaign efficiency.

Originally launched in 2023, Predictive Audiences replaced LinkedIn’s Lookalike Audiences feature, offering a more advanced way to refine ad targeting. Now, with its latest update, the platform has introduced company list targeting and retargeting sources, providing businesses with additional tools to improve audience selection.

With the company list targeting feature, advertisers can refine their outreach by focusing on specific organisations, helping B2B marketers engage with relevant businesses while excluding those outside their target market. The retargeting sources update allows brands to integrate their own audience data, further enhancing LinkedIn’s AI-driven insights.

In an official blog, the platform shared, “Predictive Audiences uses LinkedIn's AI to analyse on-platform engagement data, like ad impressions and clicks, alongside your selected first-party or third-party data (conversions API data, lead gen forms, etc.) By identifying patterns, behaviours, and similar characteristics, this tool then creates a new audience that is predicted to take actions similar to your source data.”

B2B marketing often involves multiple decision-makers; research from Gartner suggests that six to ten stakeholders are typically involved in a purchase decision. At the same time, increasing privacy regulations are making traditional audience targeting more complex. The tool addresses these challenges by leveraging AI to identify and engage users most likely to take action, resulting in improved campaign efficiency.

The platform claims that advertisers using it for lead generation campaigns saw, on average, a 21% reduction in cost-per-lead (CPL) compared to traditional targeting methods.

The platform’s AI analyses engagement data, including ad impressions and clicks, alongside an advertiser’s selected data sources to create a lookalike audience that is predicted to behave similarly to existing customers. 

To use Predictive Audiences, advertisers can follow a setup process within LinkedIn’s Campaign Manager:

1. Navigate to ‘Plan’ and select ‘Audiences,’ then click ‘Create’ and choose ‘Predictive Audience.’

2. Name the Predictive Audience and select the data source (Contact list, Company List, Conversion, Lead Gen Form or Retargeting). Then select the audience from the source drop down, audience location, and size.

3. Click ‘Create’ to generate the Predictive Audience, which will appear in the Matched Audience list for use in campaigns.