Career-centered social media site LinkedIn is experiencing a surge in ad revenue as advertisers leave X. New reports indicate that ad revenue at LinkedIn has significantly improved this year and is projected to continue growing in 2024. Insider Intelligence’s review shows that ad revenue has increased by over 10% this year, with a further 14% increase expected in 2024.
Furthermore, the price of advertising on LinkedIn has also risen. According to the Financial Times, advertising space on LinkedIn is sold at auction, directly reflecting market demand. With the introduction of more advanced targeting methods, the price has increased substantially.
Despite this, advertisers are seeing a return on investment of around 20%. LinkedIn’s business-focused nature may contribute to higher returns compared to Meta. However, Meta and Google still dominate the ad market, with LinkedIn accounting for just over 1.5% of digital advertising spending in the U.S.
LinkedIn’s increase in ad revenue may be attributed to advertisers leaving X. Elon Musk’s acquisition of Twitter and subsequent changes to the platform have prompted some activists to pressure firms to stop advertising on X. In response, Musk told boycotting advertisers to “go f—- themselves,” leading to more departures from X.
LinkedIn’s efforts to transform into a more X-adjacent platform with a customized timeline have contributed to the boost in ad revenue.