The news: LinkedIn debuted several new features for ad automation targeting small- and mid-sized businesses (SMBs) as it looks to expand its advertiser base beyond large brands.

Among the updates:

• Enhanced auto-targeting tools to reach key audiences using fewer inputs. SMBs can give LinkedIn key signals, including a list of contacts or a URL for what’s being advertised, and auto-targeting will help develop a high-value audience. Brands can also exclude signals to better clarify core audiences.
• New AI tools to create ads, including a “Draft with AI” feature that builds content based on ads already within a brand’s media library, LinkedIn’s genAI tool, and Shutterstock visuals—enabling ad creation in seconds, which can then be refined to best align with brand messaging.
• Recommendations for LinkedIn’s ad manager platform, which offers tips to maximize ROI on LinkedIn using data-driven suggestions.

Zooming out: AI ad automation is a resource that has historically been reserved for larger-budget companies, as SMBs often prioritize more immediate, cost-effective solutions aligned with limited resources and simpler operational needs.

• Larger companies often have more resources to invest in AI ad automation, allowing them to afford the initial costs and ongoing expenses associated with implementing and maintaining AI tools.
• These companies also typically have more expertise and infrastructure to effectively use AI ad automation, including dedicated teams focused on technology and data analysis critical for leveraging AI effectively.
• AI automation tools are often designed for large-scale operations and intricate marketing strategies that smaller businesses may not require or have the resources to support.

LinkedIn’s bet: Rolling out tools targeting SMBs helps reinforce LinkedIn’s broader strategy to position itself as a destination for effective, targeted engagement rather than mass reach.