LinkedIn: the dark horse of social media?
The platform hit 1B users and announced a slew of new AI features
Last week LinkedIn released a slew of new AI features for customers, anchored by the announcement that the platform will hit 1B users this month. 📈 🥇 These moves play out against the dramatic backdrop of Twitter fumbling its rebrand.
Since Musk took over and rebranded the platform to X, DAUs have declined 4% from 255M to 245M and US Ad Revenue has shrunk 60%. Musk paid $44B for the company that is now valued between $15-19B. 🚨 In a world where Twitter is chaotically lurching from one drastic product decision to another without any content moderation and an algorithm that ostensibly fuels a rage machine to drive engagement, even long-time supporters are drifting away. See Benedict Evans' thoughtful piece last week on his decision to leave the platform.
LinkedIn is best positioned to benefit from the X disenchantment because it has the most similar user demographic and intent behind use. No one is going to sub out X for TikTok or Instagram, but LinkedIn is another story.
➡ LinkedIn is where your professional network lives. Given the clear organizing principle behind the community, users are more likely to have verified profiles and be clearly identifiable in the real world. This doesn't lend itself to vitriolic hate and anonymous trolling, making the user experience much more pleasant. Sure, LinkedIn has its own issues, but I would choose a humble brag that makes me roll my eyes than threats on Twitter any day. I don’t know if anyone else shares this sentiment, but as a woman, I feel infinitely more comfortable sharing my thoughts on LinkedIn than I ever did on Twitter.
âž¡ The LinkedIn audience is inherently more monetizable. 53% of US LinkedIn users are high-income earners ($75K+). On average, the LinkedIn user base has 2x the buying power of the avg online audience. It is no wonder that creators are beginning to fill the vacuum left by Twitter by turning here. A follower on Linkedin >> a follower on any other platform.
➡ 40% of people aged 30-49 read news on LinkedIn, which makes it a great starting point for discussions and healthy debate on topics. They are unique in having an editorial function which helps promote and curate a feed of professional conversations.
Over the last 3 decades, LinkedIn has quietly been building up unassailable network effects and scale (1B uses, $15B in annual revenue). It has that most elusive of traits for a social media platform - trust and credibility - and for that reason, may well end up as the dark horse in this race. The crown is there for the taking; it is now up to LinkedIn's leadership not to squander the opportunity.
Your analysis of LinkedIn's ascent amid Twitter's turmoil is spot on (Though things may change, you never know what Elon can do!!). LinkedIn’s emphasis on professional networking and credible content has indeed positioned it as a sanctuary for meaningful, professional discourse. However, there's an undercurrent worth noting: the evolving nature of 'professional content.' LinkedIn is gradually becoming a platform where not only business achievements are celebrated but also where personal stories and challenges intersect with professional lives. This shift towards a more holistic view of 'professionalism' could be LinkedIn's secret sauce to not only attract but deeply engage users. It’s a fine balance though - keeping the platform professional yet personal enough to resonate more profoundly with its audience. LinkedIn's next challenge will be to navigate this new dimension of professional networking without diluting its core value proposition.