The departure of Elon Musk’s X advertisers raises advertising prices on LinkedIn, the platform owned by Microsoft.
LinkedIn, the social network for professionals, has experienced notable growth in the digital advertising market in recent months. As detailed by the Financial Times, greater demand from advertisers has raised advertising prices on LinkedIn, as advertisers seek to reallocate the spending they previously made on Elon Musk’s X (Twitter).
LinkedIn was previously positioned primarily as a job search and networking tool, but in recent years it has taken the step to become a platform more similar to a social network, attracting a greater number of users, and also a greater number of advertisers.
In this way, LinkedIn takes advantage of the exodus of advertisers from Elon Musk’s social network, thus increasing its advertising revenue. Microsoft’s annual advertising revenue reached almost $4 billion, approximately €3.6 billion, in 2023.
This data reflects a year-on-year growth of 10.1%, according to Insider Intelligence estimates. The research group predicted 14.1% growth in 2024.
Advertising industry experts told the Financial Times that prices for LinkedIn ads, which are sold through auction and therefore dependent on market demand, were rising as advertisers’ increased interest in the platform . Prices have increased by up to 30% in the last year, according to one of the sources.
LinkedIn takes advantage of the exodus of advertisers from X (Twitter)
The social network thus presents benefits by introducing new ways to more effectively address its billion users, all as large brands abandon X due to the numerous controversies involving Elon Musk. THE billionaire has even accused advertisers of blackmail and trying to “kill” the social network with their advertising boycott.
According to Leesha Anderson, vice president of digital marketing and social media at advertising agency Outcast, this is LinkedIn’s time. “A few weeks ago, most of our clients were on X. Now they are all outside of
Marketing specialists highlight that they are obtaining a return on investment of up to 20%, which means that for every $100 spent, advertisers would receive profits of $120. But, the costs of the platform are still high, as a media buyer details to the Financial Times, there are premium campaigns on LinkedIn in which the cost per 1,000 impressions of an ad amounted to 300 dollars, compared to a respective cost of between 10 and 15 dollars in Meta.
At the moment, LinkedIn remains a smaller platform than its large rivals, representing approximately 1.5% of brands’ digital advertising spending in the United States, according to data from Insider Intelligence.
But, as the Financial Times points out, the greater demand from brands on this platform where people, companies and brands present “considered and reflective” content, presents a growth outlook for the Microsoft-owned platform.
