Microsoft Corp's (NASDAQ: MSFT) LinkedIn is diving into influencer marketing, a domain previously dominated by TikTok and Meta Platforms Inc (NASDAQ: META) Instagram, by allowing advertisers to pay for amplifying posts from users, including popular creators, with its Thought Leader ads.
This move is part of LinkedIn's strategy to reinvigorate its revenue growth, which has been in single digits since 2022.
The platform, boasting over 1 billion members, aims to leverage this large user base for growth, especially as influencer marketing has become a significant portion of U.S. social media marketing spend, primarily benefiting Instagram and TikTok, CNBC reports.
Despite the stiff competition, LinkedIn, with just 4% market share or $4.5 billion in marketing revenue according to eMarketer, is innovating by expanding the Thought Leader ads feature, initially limited to employees' posts, to include posts from any user with the author's permission.
This expansion is a significant step for brand safety and targeted advertising, especially in business-focused sectors that are LinkedIn's core advertising base.
The platform's detailed employment data enables precise ad targeting, which is critical for B2B products.
LinkedIn's approach to humanizing brands through Thought Leader ads has shown higher engagement rates than traditional ads, although it may come at a higher cost than other social networks.
Recent reports indicated LinkedIn venturing into the realm of short-form video content, introducing a TikTok-style video feed to compete with Instagram, Alphabet Inc's (NASDAQ: GOOG) (NASDAQ: GOOGL) YouTube, Snap Inc's (NYSE: SNAP) Snapchat, and Netflix Inc (NASDAQ: NFLX).
Price Action: MSFT shares traded lower by 1.10% at $423.24 on the last check Friday.