LinkedIn ad revenue rockets as advertisers leave X
Career-centered social media site LinkedIn is raking in ad revenue as X’s advertising exodus continues.
New reports suggest advertising revenue at LinkedIn significantly improved this year and is expected to continue to grow in 2024. According to a review by Insider Intelligence, ad revenue rose by over 10% this year, with a 14% increase expected for 2024.
The price of those ads is increasing as well. As the Financial Times reported, advertising space on LinkedIn is sold at auction, corresponding more directly with market demand. And since the company has introduced more sophisticated ways to target consumers, the price has risen dramatically.
Meanwhile, buyers are getting back more than what they give, with estimates claiming some advertisers are seeing a 20% return on investment. The returns could be higher on LinkedIn than on Meta due to the business-focused nature of the site. However, Meta and Google control more of the ad market, with LinkedIn covering just over 1.5% of digital advertising spending in the U.S.
LinkedIn’s ad revenue spike might be linked to advertisers leaving X. Elon Musk bought Twitter in 2022 and changed the name this year while opening free speech to those banned by the previous regime. Conservatives cheered, yet liberals moaned, with activists pressuring firms to quit advertising on X.
In an interview last month, Mr. Musk told advertisers that were trying to “blackmail” him with a boycott to go ‘f—- themselves.” That comment inspired a new wave of advertising departures from X.
LinkedIn’s efforts have helped bolster ad revenue. Recently, the platform has evolved from purely being a site for business connections into a more X-adjacent experience with a customized timeline.
