LinkedIn ad revenue climbs to $8.2bn, driven by Gen AI and CTV

LinkedIn continues to strengthen its leadership in B2B marketing, with ad revenue forecast to reach $8.2 billion in 2025 — an 18.3 percent year-on-year increase, according to WARC Media’s Platform Insights: LinkedIn. Growth is being fuelled by investment from B2B creators, generative AI brands, and the expansion of campaigns into connected TV (CTV).

The Microsoft-owned platform is expected to sustain double-digit growth over the next two years, with ad revenue projected to hit $9.7 billion in 2026 and $11.3 billion in 2027. LinkedIn now surpasses other mid-size platforms such as Snapchat, Pinterest, and Reddit in global ad revenue.

Celeste Huang, media insights analyst, WARC Media and author of the report: “LinkedIn accounts for a small part of Microsoft’s overall revenue. However, its ad business is outpacing other mid-size platforms like Snapchat and Pinterest. Its premium subscriptions continue to rise, and efforts in growing B2B creators, video formats and CTV campaigns is delivering returns.”

Ad revenue grows as B2B investment accelerates

Business and industrial brands lead ad spend on LinkedIn, followed by technology, electronics, and government sectors. Retail represents only two percent of total ad revenue. The platform’s share of digital ad spend remains modest — at 3.2 percent in the US and under two percent in most other major markets — but it continues to gain traction thanks to its trusted environment and professional audience.

Generative AI companies are becoming a key driver of growth, allocating 12 percent of their digital ad budgets to LinkedIn — four times the cross-category average. The platform’s ability to reach professional audiences in B2B and tech sectors is helping it secure a growing share of high-value advertising investment.

Video and CTV drive engagement

LinkedIn currently reaches around 350 million active users each month, extending its reach further through the LinkedIn Audience Network. While approaching saturation in key markets like the US and India, the platform continues to expand its presence across Asia Pacific and Europe.

Short-form video is emerging as a key engagement driver, growing 12 percent year on year. LinkedIn’s connected TV partnerships with NBCUniversal, Roku, and Samsung are also expanding reach, now connecting to 105 million devices monthly in the US.

US market leads performance

Kantar’s Media Reactions survey indicates that LinkedIn ads perform strongly in the US, with high ad equity among business decision-makers. Advertisers report that trust and relevance help audiences progress through the funnel more effectively than on consumer platforms.

WARC’s report highlights that while LinkedIn ads can appear more costly on a CPC basis, account-based measures such as cost per company influenced position it as the most effective platform for B2B outcomes.