Saturday, February 14, 2015

LinkedIn Ad revenue up 46% in 2014

In 2014, LinkedIn’s full-year advertising reached $454.5 million, a 46% increase from 2013.  They made $153 million in the fourth quarter alone, a 53% increase over the same time last year.  This huge bump in ad revenue can be attributed to the smart marketing decisions the company has recently made.

LinkedIn now has a content-marketing product which they dubbed “sponsored updates”.  These sponsored updates allow advertisers to put their blog posts on LinkedIn members’ home pages.  Last February, LinkedIn started allowing advertisers to publish long blog posts on their site (“long-form posts”).  This form was so popular with advertisers that there have already been more than 1 million of these posts on the site.  This specific type of content marketing was a big component in the ad revenue increase, making up one-third of total advertising revenue.  I think the key to this type of content is that it is original and advertisers are able to target professional audiences with appropriate content-based marketing messages.  LinkedIn members grew 25% in the fourth quarter and have now reached 347 million.  As the number of members grow, so do the number of advertisers.  There were around 5,000 advertisers on LinkedIn in the fourth quarter.

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