Sunday, June 29, 2014

The Transitional Digital Marketing Strategy of Linked-in


Valued at $ 12.4 billion and appeared in the annual list at 77th of 100 global brands, Linkedin speaks itself as both “a social network and content business”[i]. Therefore, its shift in ad from displayed ad to content marketing does not catch people by surprise. According to its global VP of sales, Penry Price, Linkedin’s recently launched native ads, which it calls sponsored updates has already accounted for “13 percent of its advertising revenue”[ii].

However, a report on the marketing efficacy of Linkedin in terms of customer engagement against similar social networks, such as google + and facebook, found that Linkedin doesn’t “drive the same depth of social relationships as others”[iii]. They based their conclusion on the following findings. First, on average the percentage of the overall Internet users accessing Linked in is much lower than facebook. Second, Linkedin users tend to be much reluctant to engage with brands, such as following the brands as a means of deepening relationships.

Therefore, the authors of the report recommended marketing professionals using Linkedin more for promoting brand awareness rather than engaging with customers. This suggestion to some extent, is aligned with the unique structural composition of the Linkedin groups where people of similar interest or experience share knowledge and stay connected. This type of social network which works around making professional people more productive and successful is demographically different from traditional social network. As a result, it is more suited for companies, instead of hard-selling products to boost sales figures, to tell stories, build brands and interact with professionals with a higher consumption capcity.
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