The Problem: Vertical SaaS Targeting is Broken

Most Vertical SaaS marketers struggle with demand generation targeting because they rely on outdated or misaligned strategies borrowed from horizontal SaaS models. While horizontal SaaS companies can cast a wide net with generic ICPs, Vertical SaaS requires a more refined approach. Yet, many marketing teams default to demographic-based targeting. Focusing on job titles, company size, or industry codes rather than buyer behavior and market dynamics.

This misalignment leads to campaigns that attract unqualified leads, dilute marketing spend, and fail to drive meaningful pipeline growth. The issue isn’t just a lack of precision, it’s a fundamental misunderstanding of how Vertical SaaS buyers evaluate and adopt technology.

Why This Happens

There are three core reasons why Vertical SaaS marketers miss the mark on demand generation targeting:

1. Borrowing Horizontal SaaS Playbooks

Many Vertical SaaS companies mimic demand generation strategies designed for horizontal SaaS businesses. These strategies prioritize broad-based awareness and high-volume lead generation rather than focused, intent-driven targeting. The result? Generic messaging that fails to resonate with the specific pain points of niche industries.

2. Optimizing for Platform Settings Instead of Buyer Behavior

Marketing teams often build their targeting based on what ad platforms allow rather than how their buyers actually make decisions. While LinkedIn and Google Ads offer audience segmentation based on job titles, industries, and firmographics, these data points alone do not define purchase intent. Vertical SaaS companies must go beyond platform constraints and align their targeting with real-world industry challenges and buying cycles.

3. Over-Reliance on Demographics Instead of Market Behavior

Many teams assume that job title or company size dictates whether someone is a qualified buyer. The reality is more nuanced. In Vertical SaaS, sub-vertical segmentation matters more than firmographics alone. For example, a staffing software company selling to healthcare organizations will need different messaging for urgent care centers versus large hospital systems. Without this level of specificity, campaigns fail to generate high-converting leads.

The Impact of Bad Targeting

When Vertical SaaS companies fail to refine their targeting, the consequences compound across marketing and sales efforts:

• Higher customer acquisition costs (CAC) due to wasted ad spend on low-fit prospects.

• Sales teams chasing the wrong leads, resulting in longer sales cycles and lower conversion rates.

• Low engagement rates from potential buyers who do not see their specific challenges reflected in the messaging.

• Pipeline filled with bad-fit accounts, leading to deal stagnation and missed revenue opportunities.

• Missed opportunity to own the industry narrative, allowing competitors to set the tone and position themselves as the go-to solution while your brand remains reactive instead of leading the conversation.

What You Should Do Instead

To improve demand generation targeting, Vertical SaaS marketers need to rethink their approach and align with real buyer behavior.

1. Segment by Sub-Vertical, Not Just Company Size

Instead of grouping prospects by company size or generic industry categories, break them down by sub-vertical. A construction software company, for example, should differentiate between general contractors, specialty contractors, and large commercial developers. Each with distinct needs and purchase motivations.

2. Map Buyer Behavior to Intent, Not Just Demographics

Identify buying signals that indicate readiness to engage, such as:

• Increased activity on high-intent pages (pricing, case studies, demo requests)

• Engagement with industry-specific content

• Participation in niche events or webinars

3. Align Messaging with Industry-Specific Challenges

Vertical SaaS buyers don’t care about broad tech trends, they care about solving their specific operational inefficiencies. Build messaging that speaks directly to their pain points, such as regulatory compliance challenges, workflow automation, or revenue cycle improvements.

4. Stop Treating Ad Platforms as Your Targeting Strategy

While LinkedIn, Meta, and Google offer useful targeting tools, they should not dictate your entire strategy. Use first-party data, customer interviews, and sales insights to refine your audience segments. A well-structured demand generation program relies on understanding who your buyers are, what triggers their interest, and how they make purchasing decisions.

Final Thoughts

Most Vertical SaaS marketers struggle with demand generation targeting because they take shortcuts. Relying on platform settings, copying horizontal SaaS playbooks, and using overly broad ICP definitions. But demand generation success in Vertical SaaS comes down to precision. The companies that win are those that understand their sub-verticals, track real buying signals, and create industry-specific messaging that resonates.

If your demand generation efforts aren’t converting into qualified pipeline, it’s time to rethink your targeting strategy. Start by analyzing whether your campaigns reflect real industry pain points or if you’re just running ads based on generic platform inputs.

Wrap Up

Evron is a B2B Demand Generation and Campaign Development Firm for vertical SaaS marketers. We deliver always-on, integrated B2B marketing campaigns for vertical SaaS marketers dealing with missed sales goals, disengaged audiences, and disconnected buyers.

Discover more about Evron at evron.io. Join the GTM and Demand convo on our socials: LinkedIn and YouTube. Listen to The A2B Series Podcast on Spotify, Apple, and YouTube.