(CTN News) – LinkedIn, the professional networking platform, is experiencing a surge in advertising revenue while X, led by Elon Musk, continues to face a decline in advertising revenue.
Insider Intelligence, a research group, reveals that LinkedIn’s annual advertising revenues, under the ownership of Microsoft, reached nearly $4 billion in 2023. This represents a 10.1% increase compared to the previous year, and further growth of 14.1% is predicted for 2024.
Marketing agency executives and insiders from the advertising industry attribute the rising prices of LinkedIn ads to the growing demand from advertisers.
These ads are sold through auctions, with their prices determined by market demand, as reported by the Financial Times.
One executive noted that prices have increased by as much as 30 percent in certain cases over the past year.
As per the report, LinkedIn has been reaping the benefits of implementing strategies to effectively target its one billion users, especially as major brands are increasingly moving away from X.
“LinkedIn has become the go-to platform in recent times.
Many clients have transitioned in the past year. Just a few weeks ago, most of our clients were still on X.
Now, they have all shifted to LinkedIn,” stated Leesha Anderson, the vice president of digital marketing and social media at Outcast ad agency.
Earlier this month, Elon Musk called for the immediate firing of Disney CEO Bob Iger after the entertainment giant withdrew its advertisements from X due to its owner’s endorsement of an anti-Semitic conspiracy theory on the platform.
During The New York Times’ DealBook Summit last month, Musk specifically targeted Iger, expressing his frustration with the Disney CEO. He exclaimed, “This advertising boycott will destroy the company. The entire world will witness how these advertisers brought down the company, and we will meticulously document it.”
Several companies, including Apple, Comcast/NBCUniversal, Disney, Warner Bros. Discovery, IBM, Paramount Global, Lionsgate, and the European Commission, have recently paused or withdrawn their advertising on X due to Musk’s promotion of anti-Semitic content.