LinkedIn 4th Quarter 2012 Earnings Results Beat Expectations, Social Done Right:
LinkedIn scored with investors today after it reported stellar earnings news. LinkedIn has far fewer users than Facebook but its earnings are growing fast. The social media-networking site for professionals has several revenue streams aside from advertising that make it a hit with Wall Street. Most people don’t return to LinkedIn as often as they do Facebook or Twitter but the time they spend on LinkedIn is much more valuable. The demographic makeup of an average LinkedIn user is some college and higher income which advertisers favor.
LinkedIn users consumed 67 percent more page content than in the prior year with the site gaining another 15 million users to comfortably cross the 200 million-member mark. The company’s earnings rose 66 percent from the previous year and the efforts by LinkedIn to allow users to share content helped it become more ‘social’. Adding the news portal updates with links was a great idea and is social done right.
Facebook is taking some criticism from users due to its incorporation of heavy ads but ‘Graph Search’ could change Facebook’s business model significantly. LinkedIn was able to find an interesting way to keep users engaged without becoming too advertising focused. LinkedIn is an example of social media re-evolving and expect sites to be much different in the future with primary usage tools changing.