The platform expects the unit to reach an annualised run rate of about $100 million in the next fiscal year, according to a source familiar with the plan.

The Microsoft-owned company introduced BrandWorks internally in March 2026. Since then, the team has expanded by roughly 60%, with new hires coming from TikTok, Meta and X.

It now focuses on building higher-performing campaigns for enterprise clients, including SAP, IBM and ServiceNow.

BrandWorks also runs programmes that link advertisers with creators. One of them, Top Voices 360, supports sponsored content partnerships and has generated over $20 million between May 2025 and May 2026.

“We’re developing services that are designed to meet the marketer where they are,” said Alex Josephson, vice president of BrandWorks, who previously built a similar offering called Twitter Next.

LinkedIn is enhancing its focus in B2B advertising, even as it competes with much larger companies in digital ads. Its advertising business brought in $8.2 billion in 2025 and is projected to rise to $9.7 billion in 2026, with a further increase to $11.3 billion expected in 2027.

Even with that growth, LinkedIn is still smaller than Meta and Google in overall ad scale. Still, it has carved out a strong niche, with about 80% of B2B marketing budgets now flowing into search and social platforms.

“We estimate that 80% of B2B budgets go into search and social media, with Google and LinkedIn the primary beneficiaries of those B2B dollars,” said Luke Stillman, managing director at trend advisory firm Madison and Wall.

LinkedIn’s ad footprint is also expanding in relative terms. It accounts for about 3.2% of US digital ad spend, 2.4% in the UK, and less than 2% across markets such as Brazil, France, Canada and Germany.

Video has become an important part of its strategy. The company reports that vertical video uploads rose by 36% in 2025. CEO video posts have also increased by 68% over the past two years.

Younger users are driving some of that transition. LinkedIn says Gen Z is its fastest-growing audience, with higher engagement in video content and creator-led posts.

BrandWorks by LinkedIn also supports BrandLink, a video-focused advertising programme. The company expects BrandLink revenue to nearly triple in the current fiscal year, although it has not disclosed the base figure.

From pre-roll ads on YouTube to sponsored content on social media platforms, video ads have become an integral part of the online advertising landscape. 

But have you ever wondered how online video advertising actually works? Let’s take a closer look at the mechanics behind online video advertising and explore the key components that make it an effective marketing strategy.

1. Ad Formats:

Online video advertising offers various formats that cater to different marketing objectives and user experiences. The most common formats include:

• Pre-roll ads: These are short video ads that play before the main video content on platforms like YouTube. They capture viewers’ attention and create brand awareness.
• Mid-roll ads: These ads appear in the middle of longer video content, such as during a video series or live stream. They maintain viewers’ engagement by integrating seamlessly into the content.
• Outstream ads: These are video ads that autoplay within non-video environments, such as on websites and mobile apps. They provide an opportunity for broader reach beyond video platforms.

2. Targeting and Personalization

One of the key advantages of online video advertising is the ability to target specific audiences based on demographics, interests, and browsing behavior. Advertisers can leverage data-driven insights to ensure their video ads reach the right people at the right time. By tailoring messages to individual preferences, advertisers can create a personalized experience that resonates with viewers, increasing the chances of conversion.

3. Ad Placement:

Online video ads can be strategically placed across various platforms to maximize visibility and engagement. Popular options include:

• Video sharing platforms: YouTube, Vimeo, and other video-sharing platforms offer extensive ad placement opportunities, reaching millions of users worldwide.
• Social media platforms: Facebook, Instagram, Twitter, and Snapchat provide ad placement options within their video content, allowing advertisers to tap into their vast user bases.
• Websites and apps: Many websites and mobile apps incorporate video ad placements, giving advertisers the opportunity to target specific niches or industries.

4. Ad Auctions and Bidding

Online video advertising often operates on a bidding system. Advertisers bid for ad placement opportunities, and the highest bidder gets their ad displayed to the targeted audience. This auction-based approach ensures a fair and competitive environment for advertisers, allowing them to optimize their budget and target specific demographics effectively.

5. Performance Tracking and Analytics

To measure the effectiveness of online video ads campaigns, advertisers rely on robust tracking and analytics tools. They monitor metrics such as views, click-through rates, conversions, and engagement to assess the performance of their video ads. These insights enable advertisers to refine their strategies, optimize campaigns, and achieve better results over time.

Conclusion

Online video advertising is a dynamic and impactful marketing strategy that enables businesses to connect with their target audience in a visually engaging and memorable way. 

By understanding the different ad formats, leveraging targeted audience segmentation, strategically placing ads, participating in ad auctions, and utilizing performance tracking, advertisers can harness the power of online video advertising to achieve their marketing goals. 

As technology continues to advance and consumer behavior evolves, online video ads will continue to evolve, offering new opportunities for businesses to captivate and convert their audience in the digital realm.