Are LinkedIn Ads effective for B2B companies?

Yes, but with conditions. LinkedIn Ads work best for B2B companies with deal sizes above $20K, sales cycles longer than 30 days, and buying committees of three or more people who you can target through disciplined audience construction. The higher costs per click are justified when one closed deal covers months of ad spend.
Where LinkedIn Ads struggle is low-ACV SaaS ($50/month subscriptions), transactional sales, or companies without a defined ICP. If you can't describe exactly who you're targeting by title, seniority, and company type, you'll burn budget on a broad audience. The format matters too. In our LinkedIn Ads accounts, Thought Leader Ads consistently outperform standard Sponsored Content for B2B. Thought Leader Ads have higher engagement, lower costs, and more pipeline influence, because they look like content people chose to read, not ads they're forced to see.