LinkedIn Advertising Study by OTR. Updated for 2015.
I was pleased to be a source for the 2014 OTR Global Digital Marketing Ad Spending Industry Report on LinkedIn Corporation. OTR Global , a global research firm and consultancy, conducts unbiased marketplace checks to help leading institutional investors make informed investment decisions. According to the 2014 OTR research report on LinkedIn and related spending on its advertising units , “Growth in 1Q14 is being driven by increasing use of the native newsfeed advertising units and continued strong targeting capability for cross-platform media campaigns. ” The OTR LinkedIn Ad Spend Report reviewed the current state of spend by B2B marketers on LinkedIn’s advertising platform.
OTR has recently updated its study to include findings with agencies and LinkedIn Marketing Consultants like myself for what is happening in LinkedIn Advertising in 2015.
Before I jump into some stat summaries from this conclusive, updated OTR Global Report, let me give you a quick overview of LinkedIn as a B2B marketing, advertising, branding, recruiting and sales platform. LinkedIn is a global B2B Social Network serving over 300mm registered users in over 200 countries. Beyond the multiple ways a business professional, Hiring Manager or C-level executive can use LinkedIn to deliver personal branding, sales relationships, influence and retain top talent, as I share in my LinkedIn Marketing book , LinkedIn also has advanced ad targeting opportunities. LinkedIn enables B2B marketers to reach and engage their target by title, industry, location, LinkedIn Group membership, seniority, function and company. The advertising platform offered by LinkedIn provides targeted marketing opportunities, including:
- Sponsored Updates – Advertisers can reach LinkedIn users in their status feed of updates. This has proven to be a bonus for both LinkedIn, from a revenue standpoint and advertisers, for a way to reach and engage within live LinkedIn user conversations on the laptop, desktop, tablet and across Mobile.
- Precision B2B targeting – Advertisers can reach a specific LinkedIn audience with high-quality ad units in video, image and text. Capabilities include collecting leads on site.
Lets compare the findings of the 2014 LinkedIn Advertising Study:
- 2014 spending on LinkedIn expected to increase an average 59%–64% yy, driven by new application programming interface (API) spending in the long term
- Newsfeed advertisements will continue to improve LinkedIn’s ROI in the long term and predicted advertisers will increase spending in 1Q14
- The API partner program is expected to be the main growth driver for LinkedIn advertising revenue.
- LinkedIn advertising will become more effective as behavioral targeting becomes better for the B2B Social Network
With the findings of the new LinkedIn 2015 Ad Study:
- 2Q15 LNKD-Bizo combined ad spending growth up 31%–36% yy; 3Q15 spending also expected up 31%–36% yy
- Effective CPMs $15–$20 (higher qq for 5 of 8 repeat sources, flat for 3); 2%–5% increase expected in 3Q15 qq
- Areas to Watch: Advertisers await valuable user data from Lynda.com acquisition; broader availability of LNKD-Bizo merged platform, introduction of new products expected during 3Q15 could accelerate spending growth
If you or your organization is considering spending some of this year’s ad budget on LinkedIn to test marketing opportunities for lead generation, you may benefit from my LinkedIn Corporate Marketing Consult work. In this work, I will help you and your marketing team to understand specifically how you can use LinkedIn’s advertising opportunities in an effective way to drive brand awareness, engagement and as an incredible research tool for how well your online marketing campaigns, in general, are working. Further, I will work with you to design and implement effective LinkedIn lead generation campaigns.
Download a full copy of the OTR LinkedIn Advertising Study