Social media giant, LinkedIn Corp (NYSE:LNKD) is increasing its profits by taking up news advertisement. Penry Price, the vice president of LinkedIn’s marketing solutions in a TV interview, expressed how the company competes, with traditional media to provide information. Penry said the social media platform competes, with well-established newsmakers like the “Economist” and “financial times.”
The vice president also commented that LinkedIn was experiencing an increase in the flow of original content. LinkedIn has also expanded its long post feature. This will give its users the opportunity to write blog-like posts. The move is particularly focused on its over 230 million English speaking members especially as a result of the increased appetite for posts as well as availability of writers. LinkedIn has experienced increasing advertisement profits of up to $157 million from marketing solutions within the fourth quarter of 2014.
LinkedIn Corp (NYSE:LNKD) has therefore realized that people are responding more to content availability. This revelation has prompted the social network embrace business ads around the content. Analysts explain that the focus on content creates charm to publicists annoying traditional social media fans. Whatever the case, the move has proved a success. Take, for example, the introduction of video posts on Facebook. This has seen an increase in content by over 75% since its introduction in 2014. More and more videos are being posted, and it is no surprise that views are skyrocketing, with over a billion views since June 2014.
For LinkedIn Corp (NYSE:LNKD), the advertisements are a welcome site because they allow users to have a more engaged approach towards their particular point of interest. This has given LinkedIn the capacity to cash in on these advertisements while at the same time availing the content that will attract people to visit the social network.