Another quarterly update from Microsoft means another quarter of “record engagement” from LinkedIn, as the platform seemingly continues to go from strength to strength under the Microsoft brand.
As a quick recap, we used to get in-depth performance data from LinkedIn within its own quarterly updates, which outlined user numbers, ad revenue, etc. But after Microsoft purchased LinkedIn in 2016, the professional social network became a line item in Microsoft’s company-wide quarterly reports, which means we now get very little insight into LinkedIn’s actual performance, and in almost every update, it says exactly the same thing:
“LinkedIn saw record levels of engagement.”
Which seems impossible, right? I mean, it can’t see “record” levels of in-app interaction every three months, right?
Well, that’s what Microsoft has reported every quarter since 2018, and in this week’s update, I’d hazard a guess at what it will be:
Oh, that’s different. No “record engagement” on LinkedIn, just a note about the app’s ad sales performance, which continues to rise steadily, with the platform reaching $5 billion in quarterly revenue for the first time.
But no “record engagement” claim.
To be honest, I kind of miss it, I miss the bravado of Microsoft just cut and pasting the same overview for every one of its auditable quarterly updates.
But it just goes to show that you can’t see “record engagement” every month. It can’t happen, and now, after my years of ranting about this random claim, I’ve been proven right in my skepticism.
Well, kind of.
In terms of growth, Microsoft CEO Satya Nadella noted that LinkedIn saw “double-digit member growth” in the period, as it continues to expand in more regions.
LinkedIn is now sitting on 1.3 billion members, and as more people look to the platform as a means to showcase professional expertise, it’s growing its opportunities through expanded reach.
Though “members” and “active users” are vastly different stats, and it is confusing why LinkedIn continues to report total members as an indicator of performance, while every other social app reports actual users.
Based on its EU user count, which it has to report as part of the DSA (and also continues to grow), LinkedIn’s active member percentage in that region is around 36%, which would be a pretty regular profile/user split for a social app.
But that would also suggest that LinkedIn’s actual active user count is around 450 million or so. Which, again, is pretty fine, pretty much what you would expect for the app. Yet, for some reason, LinkedIn has gotten away with focusing on the bigger member number as an indicator.
But it’s not, and realistically, fewer than half of its members are logging into the app regularly.
Yet, even so, more than 430 million people discussing professional topics, and looking to put their best foot forward via thought leadership posts, is still a hugely valuable audience, which many advertisers will glean significant benefit from targeting.
On that front, LinkedIn also saw 30% growth in video ads in the most recent quarter, which points to the increasing popularity of video material in the app.
LinkedIn has also emerged as a key reference point for AI chatbots, which could be another lure for brands, as posting on LinkedIn could increase brand exposure and awareness via evolving search and discovery processes.
Overall, things look pretty good for the app, with more money coming in, and more people signing up.
I just don’t understand why LinkedIn looks to play smoke and mirrors with its numbers, but then again, if the market lets it, why not, I guess.
