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LinkedIn’s revenue rises by 35% in 2015; shuts down ad network

LinkedIn, which released its fourth quarter results for 2015, highlighted that its revenue increased 34 per cent year-over-year in the fourth quarter to USD 862 million and increased 35 per cent in 2015 to USD 2,991 million.

LinkedIn also announced that it would shut down its ad network that it launched in 2015. “In 2015, we launched specific products, particularly Lead Accelerator as standalone offerings. While initial demand was solid, the product required more resources than anticipated to scale. As a result, we will phase out selling Lead Accelerator in the first half, and incorporate the key technology into Sponsored Content throughout 2016. We will also deprecate network display through this process,” said Steve Sordello, CFO, LinkedIn in an earnings call.

In the quarter, cumulative members grew 19 per cent to 414 million, unique visiting members grew 7 per cent to an average of 100 million per month, and member page views grew 26 per cent. This yielded 17 per cent year-over-year growth in page views per unique visiting member, continuing a pattern of strong engagement growth over the past several quarters. Mobile grew three times faster than overall member activity, and now represents 57 per cent of all traffic to LinkedIn.

“LinkedIn delivered a strong end to 2015. Q4 was a strong quarter for LinkedIn, bringing to a close a successful year of growth and innovation against our long-term roadmap,” said Jeff Weiner, CEO, LinkedIn in the earnings call.

The year-over-year growth rate for members sharing content has nearly doubled since launching the new flagship app, accelerating to nearly 40 per cent year-over-year.

Marketing Solutions grew 20 per cent to USD 183 million and represented 21 per cent of revenue versus 24 per cent last year. “Sponsored Updates continues to be our fastest growing product at scale and is now the primary driver of growth for Marketing Solutions. Sponsored Updates continues to exceed our expectations given how quickly it has scaled. In the quarter, Sponsored Updates grew approximately 85 per cent, surpassing 50 per cent of Marketing Solutions revenue for the first time. And growth has been driven largely by a combination of engagement and customer adoption,” said Mr Sordello.

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.