Professional networking giant LinkedIn is experiencing a gold rush in the digital advertising market, thanks to Elon Musk and X (formerly Twitter). Brands are flocking to the platform, sending ad prices skyrocketing as companies reportedly pull their advertising money from X.
LinkedIn’s ad revenue jumped 10.1% in 2023, reaching nearly $4 billion, according to estimates from research group Insider Intelligence, as per a report in The Financial Times. Analysts predict this strong growth will continue, with a further 14.1% increase expected in 2024.
Why brands are coming to LinkedIn
LinkedIn’s improved targeting capabilities due to refined tools to effectively reach its 1 billion users makes it an attractive option for brands seeking specific audiences. Reportedly, there are various concerns by brands over their ads flashing next to some posts.
While the specific reasons remain confidential, this exodus presents a clear opportunity for LinkedIn to capture lost revenue. Meanwhile, the impact on ad prices is immediate and substantial. Auction-based pricing on LinkedIn has led to hikes in some cases as high as 30% over the past year, the report said.
“This is LinkedIn season. Most clients have switched over to LinkedIn in the last year. Just a few weeks ago, most were still on X. Now, they’re all gone,” Leesha Anderson, vice-president of digital marketing and social media at Outcast ad agency, was quoted as saying.
Advertisers increase spending on Instagram
Recently, a report suggested that companies like Walt Disney and Comcast, have increased their advertising spending on rival platforms like Instagram. Disney increased spending on the app owned by Meta by 40% and Comcast is spending about 6% more on advertising on Instagram, according to a report by Sensor Tower (via news agency Reuters).
Earlier this year, Musk used profanity while addressing advertising issues with big brands. In late November, Musk told advertisers boycotting his social media platform to “Go f**k yourself.”
“If somebody is going to try to blackmail me with advertising, blackmail me with money, go f**k yourself. Go f**k yourself. Is that clear? I hope it is,” he added.





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