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Making Ads Profitable: The 6 Most Effective Ad Types for B2B SaaS Firms

How to properly set up and scale the six best types of digital ads for B2B SaaS firms

Hi there,

Today we have a new in-depth article on profitable ad scaling and how to set up the six most effective types of digital ads for B2B software companies, including:

  1. Paid Search Ads (Google, Bing)

  2. Retargeting Ads (Meta, LinkedIn, Google Display, Bing, Adroll)

  3. Matched Audience Ads (Meta, LinkedIn, Google Display, Bing, Adroll)

  4. Customer & Prospect Lookalike Ads (Meta)

  5. Social Content Boosting Ads (Meta & LinkedIn)

  6. Review Site Ads (G2, Capterra, GetApp, Software Advice)

You can forward this detailed ads guide to your marketing team for implementation or you can hire our team to set up, optimize, and and scale these six channels for you.

If you’re not already a SaasRise member, if you like in-depth quality growth content like this, apply to join our community for SaaS CEOs and Founders with $1M to $100M in ARR. So far we are up to 279 members representing $1.8B in ARR.

All right, let’s jump in to the good stuff…

Making Ads Profitable: The Six Most Effective Ads Types for B2B SaaS Firms
By Ryan Allis, CEO & Founder of SaasRise

About the Article: Ryan Allis was the co-founder and CEO of iContact and grew the firm to 70,000 customers, 1 million users, 250 employees, $50M per year in sales, and an exit for $169M. He is a three time INC 500 CEO and today he coaches SaaS CEOs on scaling and exiting and is the founder of SaasRise, the community for growth-focused SaaS CEOs and founders. You can review our member information deck here and apply to join SaasRise here.

Founder led sales, content marketing, and bootstrapping is the usually key to going from $0M to $1M in a SaaS business.

However to go from $1M to $25M+ in ARR, making digital ads profitable is the key.

If you can make digital ads profitable, depending on your niche, you can likely add another $2.5M to $25M in ARR to your top line over the next 3-4 years. At a 4x ARR revenue multiple (the 2023 average for SaaS M&A transactions), that’s an added $10M to $100M in enterprise value to your company over the next 36-48 months from making this channel work.

The value to your firm of figuring paid ads out and making them profitable and scalable? An increase in enterprise value of $10M-$100M. So yes, it’s worth keeping at it until it works and investing $100k to $250k in setting up ads properly.

- Ryan Allis, CEO of SaasRise

We added an extra $100M to our eventual exit value of $169M at iContact by making paid advertising profitable.

We scaled iContact to $50M in ARR by scaling up our profitable ad spend to $2M per month, which generated 4000 new customers per month for us and allowed us to have a successful exit for $169M.

What do I mean by profitable? I mean that the ad costs are paid back within 6 months of revenue, or less (such that ad costs are <50% ACV and less than 20% of LTV).

Paying 6 months of revenue to acquire a customer is not an issue in most B2B SaaS businesses, considering the average lifespan of a customer is usually 2-5 years. We encourage our members to calculate their LTV (ARPA * Lifespan) and then take 1/6th of their LTV to create their “target CAC.”

And then it simply becomes a game of how to acquire as many customers as possible per month within that target CAC.

In my 22 years in SaaS, I’ve managed more than $50 million of profitable B2B digital ad spend, either for iContact or for our ad scaling clients at SaasRise, our B2B SaaS scaling agency that is only available to our SaasRise members.

We’ve learned a few lessons doing this, that I’d love to share with you here – so you, your Head of Marketing, or your own ad agency can replicate what’s working for us.

Feel free to forward this guide to your marketing team for execution, or reach out if you need digital ads implementation. We have a done-for-you service for $120k where we will install, optimize, scale, and fully manage the below system inside your company. This is designed for B2B SaaS firms with $5M to $100M in ARR that want to scale up faster.

Lastly, if you’re not already a member, we invite you to join our SaasRise CEO/Founder community where we go deeper into growth strategies for SaaS firms scaling from $1M to $100M via our Slack channel, WhatsApp group, and weekly mastermind calls. Our masterminds as well as our CEO coaching, exit consulting, and our done-for-you ad implementation services are just for our SaasRise members.

Let’s go into a many more levels of specific implementation detail below… but first a message from one our official SaaS web design partner, Overpass Studio.

A Message from Our Web Design Partner

Overpass Studio is a UK-based design agency, with a laser focus on high-performance, Webflow websites for B2B SaaS scale-ups. Their philosophy is you should treat your website like your product and stop guessing. By applying a test and learn methodology to how they build and manage websites, they achieve conversion rates 3-4% above the industry average. Their unique subscription model includes unlimited website updates, A/B testing and CRO - all for the price of hiring a single designer. Learn more at www.overpass.studio. Overpass is in the process of re-designing our current SaasRise website for us. Thanks Overpass!

The Six Most Effective Types of Digital Ads for Saas Firms

There are six major types of digital ads that we’re finding particularly effective right now for B2B software companies. 

  1. Paid Search Ads (Google, Bing)

  2. Retargeting Ads (Meta, LinkedIn, Google Display, Bing, Adroll)

  3. Matched Audience Ads (Meta, LinkedIn, Google Display, Bing, Adroll)

  4. Customer & Prospect Lookalike Ads (Meta)

  5. Social Content Boosting Ads (Meta & LinkedIn)

  6. Review Site Ads (G2, Capterra, GetApp, Software Advice)

Which ones are you doing so far? And do you know the Cost Per Lead (CPL) and Customer Acquisition Cost (CAC) for each?

How to Set Your Target CAC

Target CAC should be around 50% of ACV (6 month payback) or around 1/6th of your LTV. You can triangulate these two measures to find the goldilocks level of growth and profitability.

Target CAC should be around 50% of ACV (6 month payback) or around 1/6th of your LTV. You can triangulate these two measures to find the goldilocks level of growth and profitability.

- Ryan Allis, CEO of SaasRise

If you’re an enterprise SaaS company where your ACV is $100k, making your target CAC $50,000 (perhaps too much for a test for some firms) – you can instead do the test budget based on the Cost Per Lead (CPL) instead of the CAC.

Avoid These Common Mistakes in Paid Ads Setup

Here are the four most common mistakes in setting up paid ads.

  1. Not setting a target CAC before you start running ads

  2. Not tracking CPL and CAC

  3. Not sending traffic to a landing page with a clear Call-to-Action

  4. Not using a multichannel attribution tool

All too often, I hear the following from CEOs: “We tested paid ads, and they didn’t work for us. We’re going back to just doing organic content and tradeshows."

I then ask, well what was your CPL and CAC for the ads — and what was the payback period — and these CEOs don’t know the answer.

SaaS Marketing isn’t like ecommerce where you aim to breakeven on the first sale. SaaS generates an annuity stream, often for years to come, where you can break even on Sales & Marketing investments over 6-12 months.

So when you run ads, you have to calculate the CPL, CAC, payback months, and LTV:CAC ratio for each channel AND each ad type.

I also ask to see the landing page for the campaigns and often find out the traffic was being sent to a home page without a clear Call-to-Action (trial, demo, lead magnet, etc.).

These are just two of the common mistakes you can avoid when setting up your campaigns.

Another big mistake is relying on the native ad platforms (Google, Meta, LinkedIn, etc.) for tracking conversions. That doesn’t work when you’re running multiple networks at once (as each one tends to take credit for conversions they’ve influenced, counting the same conversion multiple times).

Here’s how to properly set up each type of ads and how to track and scale up what works. First, let’s get multichannel tracking and conversion attribution set up properly.

How to Set Up Ad Tracking & Conversion Attribution

If you’re just going to do a test on one channel (e.g. Meta or Google Ads) it’s fine to use the native tracking within the ads manager interface for each platform.

To do this, install the tracking pixel for each platform (Meta, Google, LinkedIn, etc.) – set up conversion tracking for each type of conversion you want to track and optimize for (lead, trial, demo, download, etc.).

Once you start showing ads on multiple platforms at once (i.e. Meta, Google, LinkedIn, Bing, and Adroll), it’s important to set up an ad tracking on a tool like Cometly that will disaggregate conversions across all the platforms.

Good tracking tools also will send back to each platform all the conversion events via API (a more accurate method) so that their algorithms get the signals to show your ads to MORE people who are like those who convert. This creates a snowball effect with conversion data, allowing you to get better results as time goes on.

Use a tracking tool like Cometly to track leads and customers by channel, disaggregate conversions so multiple platforms don’t claim the same conversion, and feed back into the ad network algorithms when successful conversions occur.

Use a tracking tool like Cometly to track leads and customers by channel, disaggregate conversions so multiple platforms don’t claim the same conversion, and feed back into the ad network algorithms when successful conversions occur.

- Ryan Allis, CEO of SaasRise

Here’s what the Cometly interface looks like for our own ad account (which we use to run ads for our SaasRise community of CEOs/Founders). As you can see, ads drove 79 applications and 5 new paying members for us in June 2024.

We use Cometly for tracking paid advertising results for our SaasRise clients

You can use Cometly to track conversions (leads, trials, demos, customers, etc.) for both paid channels and organic channels – so you can easily and quickly see what channels are driving results for the business.

Cometly’s new version (launching July 2024) also allows you to give attribution credit on a first touch, last touch, or linear basis (equally to all contributing platforms), or U shaped (40% credit to first, 40% to last, 20% to all others). We like using the U shaped attribution model, which will give full credit if there’s only one referring channel, and partial credit if there are multiple channels that influenced the sale.

As a side note, Cometly currently tracks how many sales are post-click but not how many sales are post-view. We like looking at both metrics for a full picture. In June 2024, we drove 5 sales via people who clicked on an ad, plus an additional 8 sales via people who viewed an ad and then applied to join our community within 24 hours of seeing the ad — for a total of 13 sales “influenced by ads” and 5 sales “directly from ads.”

As noted above, regardless of whether you use Cometly, their competitors Hyros, HockeyStack, Google Analytics, or Hubspot, or simply the native ad tracking platforms themselves – be sure you can calculate the Cost Per Lead and Customer Acquisition Cost (CAC) for each channel and each type of ad.

You’ll need the CPL and CAC per channel and ad type later on to optimize your ad spend by channel – giving more to the channels that are working and less to those that aren’t.

HockeyStack also has a nice interface for tracking paid advertising results

How to Set Your Initial Test Budget

It will, of course, require less money to get statistically significant ad results if you target SMBs vs. large enterprises – as you will need to spend less on the test to actually get a couple paying customers from the campaign.

You can often acquire SMB customers (paying $10 to $500 per month) within a few weeks while enterprise clients of course often take 3-12 months of a sales cycle.

The shorter your average sales cycle, the shorter time (and lower cost) until you have solid test results.

I’ve seen high ACV firms ($250k) have to spend $200,000 in ads to get statistically significant results from their tests – often starting by optimizing based on CPL in the first 1-2 months while they ramp.

To estimate your initial test budget, take your target customer acquisition cost (CAC) and multiply it by 2-3 for each channel. That way, you’ll spend enough to at least get 2-3 customers per channel and be able to calculate your CAC. 

If you’re optimizing based on leads in your test campaign, be sure spend enough to acquire at least 10-20 leads per channel – so that you can calculate both your Cost Per Lead and your Cost Per Sales Qualified Lead (CPSQL).

So let’s say you’re normal CAC is $5,000 and CPL is $500. Then you’d want to spend in your test budget around $10,000 per channel to get statistically significant enough results. Then after you complete the first 60 day test, reallocate the budget toward the channels giving you the lowest CPLs and CACs.

You can use this spreadsheet template to determine your own test budget. An initial monthly test budget might look like this:

Note that it usually takes 2-4 weeks to set up tracking and turn on the ads, and then around 60-90 days to get statistically significant results back (shorter for SMB firms) to allow you to properly calculate Cost Per Lead and Customer Acquisition Cost per channel, and then another 1-2 months to optimize the results you’re getting through both landing page optimization and campaign tweaking.

So yes, it can take 4-5 months from start to finish to properly test an ad channel.

If you can’t afford to test six new channels at once (what we do for you in our done-for-you service), you can pick one or two channels at a time to test.

If I had to pick three to start with, I’d start first with Google Search, then retargeting ads (on Google Display, Meta, and LinkedIn), and then Meta Customer Lookalike Ads.

If you do have the capital to test multiple channels at once, it can be helpful as what we often see for B2B SaaS is half of the channels work and half don’t. You don’t want to “test the wrong channel” and then conclude ads don’t work for you.

Initial Budget Allocation Example

Here’s an example recommended initial allocation by ad type. Something along these lines is a good place to start.

  • Paid Search Ads - 30%

  • Retargeting Ads - 15%

  • Matched Audience Ads - 15%

  • Lookalike ads - 15%

  • Review Site Ads - 15%

  • Social Content Boosting Ads - 10%

Recommended initial ad budget allocation by ad type

Once you get results (leads or qualified leads, however you want to measure it), you can allocate more budget to the channels and ad types driving the lowest Cost Per Qualified Lead.

After 3-4 months of optimizing based on CPL and CAC, we’ll usually see most (~70%) of the budget deployed to Google Paid Search ads, Meta Customer Lookalike ads, and retargeting ads on Google, LinkedIn, Meta, and Adroll with the rest (~30%) allocated to matched audience ads, social content boosting, and review site ads.

Now for some more detail setup instructions…

How to Set Up These Six Ad Channels Inside Your Company

Now that we know how to set up ad tracking and how to think about the initial test budget, let’s go through each of the six major ad channels. 

Category 1: Paid Search Ads - Google & Bing

We recommend bidding on four types of keyword groupings within paid search on both Google and Bing. Keep each type in its own campaign so you can more easily track and ramp up what works.

  1. Branded terms - Your company name and product names (ex: SaasRise)

  2. Comparison Terms - Your brand vs. other brands  (ex: SaasRise vs. SaaS Academy)

  3. Competitor Terms - Competing and adjacent product names - (ex: SaaS Academy)

  4. Intent terms - Terms leads type in to find what you offer - (ex: SaaS CEO Community)

Be sure to be very careful with restricting paid search campaigns to only display in the countries/regions/locations where you want them to. Many times I’ve seen 90% of a search budget optimized based on clicks or leads wasted by Google showing ads globally in lower cost areas when my main target market was in the USA/CAN/UK/AUS.

Category 2: Retargeting Ads

Retargeting is showing ads to people who have already interacted with your company in some way. This could be:

  • Website visitors from the last 180 days

  • Trial users

  • Lead form fillers

  • Demo form fillers

  • People who clicked on the ad

  • People who watched a video

  • People who visit your social media pages

  • People who visited a certain product page

  • Customers (to offer upsells/crossells or further educate them on the product)

  • Or anyone who has taken any other custom action

Using retargeting you can get very granular about your messaging to people based on their stage in the pipeline and the actions they have or haven’t taken.

Retargeting ads on Meta, LinkedIn, Bing, Google Display, and Adroll are very effective at reducing sales cycle length, increasing lead to sale conversion, and upselling existing customers on new offerings. 

Retargeting ads are very effective at reducing sales cycle length, increasing lead to sale conversion, and upselling existing customers on new offerings. 

- Ryan Allis, CEO of SaasRise

For example, once someone applies to SaasRise and is accepted, we show them a short 30 second video from me (on Facebook, Instagram, and LinkedIn) with me encouraging them to start their two week free trial of our community. This can be shot with an iPhone. The more informal/real/authentic the better.

You can set up retargeting ads on Google, Meta, Linkedin, Bing, and Adroll. To optimize your sales cycle conversion and revenue growth, we recommend spending about 5%-15% of your total ad budget on retargeting ads. 

How Retargeting Ads Work

These types of ads create a sense of omnipresence for your brand once a prospect engages (and even before they engage) that brings people down the AIDA funnel. 

Category 3: Matched Audience Ads

Matched audience ads are the way to do Account Based Marketing (ABM) using display advertising. You upload a list of warm prospects and cold leads and show ads to them. 

  1. Step 1 - Upload your list of prospects from your CRM tool and show ads to this audience

  2. Step 2 - Export a list of leads that match your target market (location, industry, revenue, employee count, etc.) using your favorite lead prospecting tool (Apollo, Instantly, Seamless, ListKit, ZoomInfo, etc.) and then upload this list to the above platforms and then show ads to this target audience. You can expect match rates around 30-50%.

Use a lead prospecting tool like Apollo to build a list of target accounts based on industry, employee count, job title, and geography. Then upload this email list to the ad networks (Google, Meta, LinkedIn, Bing, Adroll) and show ads to the people it matches against. 

Use a lead prospecting tool like Apollo to build a list of target accounts based on industry, employee count, job title, and geography. Then upload this email list to the ad networks and show ads to the people it matches against. 

- Ryan Allis, CEO of SaasRise

We were able to find a solid contact on Fivrrr who has a Enterprise high volume account on Apollo and provides access to the data at a lower cost than you could personally get directly through Apollo. Message me within the SaasRise platform or on WhatsApp for an introduction.

You could also use an expensive demand gen tool like 6Sense or DemandBase to upload lists of target accounts to the ad networks, but the above methodology is a lot less expensive. 

Another use case for matched audiences is advertising to your former customers that you may want to re-engage. You can simply use the same method above and upload the list of your past customers to all of the platforms.

Category 4: Lookalike Ads

We’ve been seeing our B2B SaaS clients get a strong ROI and LTV:CAC ratio out of Meta Lookalike ads recently. These types of ads are often a scalable way to reach more leads that look very similar to your existing customer base and prospect base. 

Start with a 1% match rate on your Meta Lookalike Ads. As long as your lookalike audience size is 1000+ people you’ll be able to show ads to people who look similar to them by location, job title, geography, interests, age, gender, etc. 

Start with a 1% match rate on your Meta Lookalike Ads. As long as your lookalike audience size is 1000+ people you’ll be able to show ads to people who look similar to them.

- Ryan Allis, CEO of SaasRise

There are three types of Lookalike ads you can run.

  1. Prospect Lookalike Ads - Lookalike audiences based on all your past demos, trials, leads, etc. Only works if you have at least 1000 prospects to data match off of. Use this if you don’t have 1,000 customer contacts yet to match against.

  2. Customer Lookalike Ads - These work the best, but only work if you have at least 1000 total account contacts as your existing customers. So if you for example have 2 contacts each at 500 customers, this would work. Or if you have more than 1000 customers, this would also work.

  3. Conversion Event Lookalike Ads - As you start building momentum with your advertising, you can build lookalike audiences from the people that have hit a conversion event from ads (like leads, appointment bookings, or even purchases). This will allow you to display ads to other people who are most similar to the people who are actually entering the sales funnel through your advertising efforts.

How Prospect & Customer Lookalike Ads Work

Category 5: Social Content Ads

There are three types of social content ads we like to use for our clients.

  1. Boosted Founder Posts - A piece of topical LinkedIn content written by (or ghostwritten for) the CEO or founder that is relevant to the target market niche that is then boosted with ad dollars after posting to get wider exposure. These posts are designed to drive engagement and conversation and problem/brand awareness rather than an immediate call-to-action, under the perspective that if the client has the problem they will go to the website and reach out. Pick topics that are highly relevant to your audience, somewhat controversial, or timely. Do 3-5 of these per week for maximum effect, focusing on writing and then boosting high quality posts. $20 per LinkedIn post is enough to boost it to start.

  2. Boosted Thought Leader Posts - A piece of content written by an influencer or thought leader within your niche describing how they use your solution to help them solve a problem. This post would talk about how your product solves a problem their audience (and your ideal client) would likely be experiencing. The thought leader would post the content on their page, and then you would boost it from your ad account. This helps both parties get more exposure. You can also pay for this type of content to be created.

  3. Boosted Client Posts - A testimonial post from a client that is posted by a client on their LinkedIn profile describing how they benefited from your solution/offering, that you boost with your ad dollars to get wider exposure. Again, around $20 per post is enough to start, then you can do more as it works. The client benefits from the ad dollars, gaining added exposure to their profile and expanding their reach.

From there, if you find a post that seems to get consistent engagement, you can keep it running as an ongoing evergreen ad for an extended period of time.

Boosting high quality, well-written social content posts can be very helpful to  building awareness for a company within its target market – and will grow your organic following.

Boosting high quality, well-written social content posts can be very helpful to  building awareness for a company within its target market – and will grow your organic following.

- Ryan Allis, CEO of SaasRise

Below is an actual example of one of these social content posts…

This 513 word social content post (along with 5 min video) from Adam Robinson, who often writes about SaaS got 678 likes, 169 comments, and 23 shares. That’s the type of engagement you want to be shooting for.

An example of a boosted content post on LinkedIn

Category 6: Review Site Ads

The last category is review site ads. These are ads on G2, Capterra, GetApp, and Software Advice. This is where you pay a CPC or CPL to the above software review platforms to list you as a premium listing and to give you a list of the companies that are in-market for your category. 

Combining these listings with a customer review campaign (where you offer a $50 gift card to your customers who do a review) can help you improve your positioning in the review sites. While these sites do include software tools that don’t pay per click or pay for a premium listing, those who do pay will usually get a lot more traffic and an improved listing.

he GetApp listing for iContact, the company I grew to $50M ARR

Now that we’ve covered the six types of ads, let’s talk about how to optimize the ads and landing pages.

Ad Optimization & Landing Page Optimization

You can start with static ads built in Canva or Figma going to a basic landing page with no navigation on it that has a logo, a headline, subheadline, a few bullets, and lead form on it. 

Once you get some numbers back on Cost Per Lead, you can then work to test different variations of the landing page (using a tool like Unbounce), test different ad styles, and test some 15-30 second animated ads and 15-30 second video ads. 

Use an ad generation tool like AdCreative to easily pump out 100-200 ads in various styles and all the proper sizes in minutes.

At any given time it’s important to have about 10-20 different ad creatives going, and to add in new ads to the mix every month. Your clickthrough rate (CTR) will decline over time if you don’t add in new ads into the mix every 4-6 weeks. This is especially true if your target audience is fairly narrow with relatively few new target contacts entering each year.

Keep your control ad (best performing ad based on CPC and CPL and CAC) in place always, and add new designs and offers monthly that might beat the control.

I also recommend promoting individual pieces of written blog content that are relevant to your audience. This will often get a higher click through rate than simply a demo or free trial call to action.

You can check out the Meta Ads Library, Linkedin Ad Library, and Google Ads library to see the ads of your competition and other great marketers you notice.

You should include some of each of the following types of ad creatives…

  1. Testimonial Ads - Go to your standard landing page

  2. Blog Content Ads - Go to a written piece of content that has a CTA within it

  3. Case Study Download Ads - Go to a page where user can download a case study

  4. Free Trial Ad - Go to a page where users can start a free account or free trial

  5. Demo Ads - Go to a page where users can book a demo or sales call

  6. PDF Report Ads - Go to a page where users can download a valuable PDF report

  7. Founder Video Ads - Go to your standard landing page

Testimonial Ad Example

Blog Content Ad Example

Case Study Ad Example

30 Second Founder Video Ad Example

The Ad Scaling Process

Every week, you should be reviewing the results of your ad campaigns and adjusting the budget, allocating more to what is working. Here’s what our actual SaasRise ad results spreadsheet looks like (for our own ads for our community of SaaS CEOs/Founders). You can see we’ve ramped up from $477 per week in ad spend to $1739 per week in ad spend. 

Track your ad results and look at CPL and CAC on a weekly basis by ad network and ad type, then reallocate spend to the channels doing the best.

- Ryan Allis, CEO of SaasRise

We also break these results down by ad network, so we can allocate more budget to the channels with the lowest CPL and also the Cost Per Qualified Lead (CPQL) and Customer Acquisition (CAC), which we track on the right side of the sheet. You can also add in other channels like events, trade shows, affiliates, cold email, direct mail, podcast sponsorships, streaming TV, etc. into your analysis. 

All the digital channels are also tracked in Cometly, but we still put in the spreadsheet weekly so that we can add in post-view conversions, which Cometly doesn’t do quite yet.

Finally we also put in graphs to show us visually what’s going on.

The Monthly Reporting & Optimization Process

We use our own weekly reporting, plus a monthly reporting spreadsheet that looks like this…

We’re getting payback on our ads within less than 2 months of revenue

We use this sheet to track how our overall business is doing and then scale up the channels that are working best.

Two Ways to Calculate CAC

We find it helpful to calculate CAC monthly in two different ways:

  1. Ad CAC (Total ad spend / customers acquired from ads during that period) 

  2. Overall CAC (Total S&M costs / all customers during that period)

For our clients, we scale up the campaigns that payback in 12 months or less (6 is our target) and generate an LTV:CAC ratio of 6:1 or better, and scale down the campaigns that don’t perform that well. 

With a subscription offering, look to make your money back on your ads within 6-12 months. Less if you have high churn and more if you have low churn. Target a 6:1 LTV:CAC ratio or better.

- Ryan Allis, CEO of SaasRise

Achieving these key ratios means that for every dollar you put into ads, you want to generate at least $6 in lifetime revenue. This also means that if you have an ACV of $10,000 you want to target a customer acquisition cost of $5,000 (and maybe $10k if you have a strong balance sheet and want to grow very quickly).

As you can see above, we are currently breaking even on our ad spend in 1.25 months of subscription revenue, making it a no-brainer to continue to ramp this ad spend.

We’re very transparent about our own metrics as you can see, as we use them to help our community learn. You can see in the graphic above, we’ve grown SaasRise nicely from an ARR of $1.2M to an ARR of $1.9M over the last 6 months. Not bad.

We do this setup and reporting for our ads management clients, and offer a $120,000 white glove done-for-you ad implementation service ($30k/month for 4 months) for our B2B SaaS clients who want to use ads to scale up customer acquisition and have us set it all up for them. This works best for firms in the $3M to $100M ARR range, as below that level of ARR you often won’t have sufficient ad budget to make it worth spending $120k for our level of bespoke setup.

If the fit is right and you’re ready to grow faster, we’d love to help set up, scale up, and optimize these six channels within your company over the next 4 months. Reach out to us here if you’d like some help in either ads setup, growth consulting, or exit consulting. You’ll work directly with me and our Head of Growth David Trachsel. 

These six types of digital ads (Paid search, retargeting, lookalike, social boosts, match audiences, and review sites) across nine different channels (Google, Meta, LinkedIn, Bing, Adroll, G2, Capterra, GetApp, and Software Advice) combined with a cold email prospecting on Instantly, a strong 2x per month high value newsletter on BeeHiiv, tradeshows and events, and a good affiliate/reseller program seem to be the magic sauce for mid-market/enterprise B2B marketing.

For More Content Like This…

I hope you enjoyed this in-depth article on profitable ad scaling. To go even deeper, you can read our similar articles on this topic of SaaS digital advertising:

We hope you enjoyed this case study. If you want more killer SaaS scaling content like this – apply to join SaasRise, our community of software CEOs/Founders with $1M-$100M in ARR.

Join SaasRise: Our SaaS CEO & Founder Growth Community

If you like in-depth quality SaaS growth content like this, apply to join our community of SaaS CEOs and Founders with $1M to $100M in ARR. Apply at www.saasrise.com. We do 3 weekly mastermind calls for our members and also have a private Slack channel and WhatsApp group and provide an in-depth library of SaaS growth, fundraising, and exit resources. We offer a free two week trial then it’s $197/month if you stay. We also offer 1:1 CEO Coaching, group coaching, digital ad management, and exit prep consulting services.

So far we are up to 279 members representing $1.8B in ARR.

You can apply here.

See you next week with more killer SaaS scaling content!

About the Author: Ryan Allis is the founder of SaasRise, a community for SaaS CEOs with $1M to $100M in ARR. Ryan previously led iContact as CEO and Co-Founder to $50M ARR and a $169M exit, raised $47M in equity capital and $6M in venture debt, and earned an MBA from Harvard Business School. Today, Ryan advises B2B SaaS CEOs on scaling up and helping them prepare for nine figure exits.

P.S. - Below are six valuable SaaS growth resources we’ve put out. I hope they are useful to you!

Six Helpful Free SaaS Growth Resources from SaasRise

The most in-depth guide for scaling up SaaS companies from $0 to $50M in ARR. Including over 1,200 slides on every aspect of SaaS scaling.

How to determine whether to scale up or down your marketing channels

How to calculate ARPA, LTV, Churn, Lifespan, CPL, CAC, and Max CAC

A fourteen page in-depth PDF on we take each CEO client through a six-phase process designed to increase lead volume, customer acquisition, and revenue growth — and then scale up the sales team, executive team, and investor support as we help you prepare for future fundraising rounds (if needed) or an exit (if desired).

A twenty page in-depth PDF on how to scale a B2B SaaS Company from $1M to $50M ARR. Covering CAC-based customer acquisition, sales team scaling, venture capital markets, and preparing for the exit.

The SaaS Growth Formula was written to help SaaS CEOs who are focused on growing their company's sales - by implementing a simple formula called The Growth Formula. This formula is for companies that have already established product/market fit, already have paying customers, and are now ready to scale up through scientific and CAC-based digital marketing, inbound sales, and outbound sales.

Join Our Saas Growth Mastermind for CEOs and Founders With $1M+ in ARR

If you like the above resources and want more stuff like this, apply to join SaasRise, our mastermind community for SaaS CEOs and Founders with $1M+ in ARR who are focused on scaling up MRR. Every Wednesday we jump on an optional mastermind call to support each other and share what is working with scaling our companies – and we support each other throughout the week in our private community on Slack, WhatsApp, and our own custom platform.

About The Author

Ryan Allis is the founder of SaasRise, the mastermind community for growth-focused SaaS CEOs with $1M-$100M in ARR. He is a three time INC 500 CEO. He was previously CEO of iContact and grew the firm as founder/CEO to 70,000 customers, 1 million users, 300 employees, $50M per year in sales, and an exit for $169M to Vocus (NASDAQ:VOCS).

Since the sale of iContact, Ryan has been the CEO coach to high-growth SaaS firms including Tatango, Seamless.ai, Pipeline, Datalyse, Green Packet, Revenue Accelerator, RXNT, Galleon, Clearstream, YouCanBookMe, Retreaver, and EventMobi. Ryan has been part of the EO and Summit Series communities.

He holds an MBA from Harvard Business School, where he was Co-President of the Social Enterprise Club and a member of the Harvard Graduate School Leadership Institute. He’s passionate about helping recurring revenue software companies grow and exit.

We’ll see you next time with more great SaaS growth and scaling content!