The analysis from the Insider Intelligence group shows that LinkedIn's annual advertising revenues increased to nearly 4 billion dollars in 2023. This situation is a consequence of a massive outflow of advertisers from the X platform.
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Growing dissatisfaction of advertisers with X's (Twitter's) services has resulted in a mass exodus of brands to competitors and an increase in advertising costs on other platforms. According to a report by the Financial Times, LinkedIn benefited the most, which in 2023 raised the prices of promotional campaigns offered in the auction model by 30%. Currently, a thousand views of such an advertisement cost even 300 dollars on the site. A similar format on Meta platforms costs between 10 and 15 dollars.
Analysis by the research group Insider Intelligence also shows that as a result of the price increase, LinkedIn's advertising revenues in 2023 rose to 4 billion dollars - about 10% compared to 2022. Forecasts for 2024 indicate a further increase of 14%.
– This is the season for LinkedIn. Most have moved to LinkedIn over the past year. Now everyone is outside of X – emphasizes Leesha Anderson, Vice President of Digital Marketing and Social Media at the advertising agency Outcast.
Let's remind that the outflow of advertisers from X is caused, among other things, by Elon Musk's posts supporting anti-Semitic conspiracy theories and his public statements directed directly at advertisers. These controversies led to the withdrawal of advertisements by many giants, such as Apple, Disney, Warner Bros. Discovery, IBM, Paramount Global, Lionsgate.
During the The New York Times DealBook Summit, Musk also expressed his dissatisfaction with Disney's decision against his platform. He also publicly criticized the brand's CEO, Bob Iger. The billionaire stated that Iger should be fired, and the advertising boycott could lead to serious consequences for all of X. He also announced that all events will be thoroughly documented.
Although LinkedIn is introducing improvements aimed at perfecting promotion targeting and is striving to implement further innovations, it still remains a relatively modest player in the world of digital advertising. Its share in this market in the United States is only 1.5% and clearly gives way to powerful competitors such as Meta and Google. However, the growing trust of advertisers suggests that LinkedIn is gaining more and more recognition and position in the competitive advertising environment.
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