LinkedIn launched in 2003 as a business-centered social media platform, and by 2006 they had increased their membership to 20 million individuals. This focus on strategic and targeted business growth for individuals contributed greatly to the success of the company, allowing it to go public in 2011. 2011 was also the first year that LinkedIn surpassed Twitter in advertising revenue.
Social media advertising was not a new concept in 2011, sites such as MySpace and Facebook had already launched their own advertising platforms. The difference in LinkedIn’s advertising strategy was that business-to-business organizations now had a platform to promote their products and services in an efficient and highly targeted way.
An article in the March 2016 issue of AdWeek provides some incredible statistics regarding the online population of LinkedIn. For example, LinkedIn has the highest percentage of users with the education level of “graduated college plus” than other social media platforms, with 67% claiming this title. Also, “LinkedIn has the highest median household income, at approximately $110,800”. These demographics help to paint a picture of this online community and show advertisers who they are advertising to.
Who should advertise on LinkedIn?
LinkedIn is a powerful tool for business-to-business organizations, such as software companies, business financing companies and manufacturing companies. It’s advertising technology allows the advertiser to target individuals with ads based on their geographic location, job title, industry, education level and more. It is an excellent tool for businesses and industries with an extremely limited or targeted audience. By ensuring that your ads are shown only to relevant individuals, marketing dollars are stretched further and there is less waste.
How does it work?
LinkedIn provides two options for its advertisers.
Sponsored Update: These ads are shown in the newsfeed of an individual’s homepage, on both desktop and mobile platforms. They are shown in the form of a blog, with a click-through option to move to LinkedIn’s self-hosted blog platform or the advertiser’s website. These are great options for those looking to provide quality content to their target market.
Side Bar Ads: This advertising option is only available for the desktop version of LinkedIn. These ads are more “simple”, as they show a small square image and minimal text. These ads are great for individuals with a strong call to action, such as “Download for Free” or “Increase Your Sales in Minutes”. They click through to the advertiser’s website, where the potential customer then has the opportunity to further engage with the promotion.
LinkedIn is a great option for B2B marketers looking to change or add to their current marketing mix. By combining its excellent targeting capabilities with its ad options, advertisers can make the most of their marketing budget. For more information on how you can use LinkedIn as part of your marketing mix or to learn more about how we’re helping other clients with their marketing, call Spotburner today at (818) 483-1385.