Sponsored Updates revenues grew by 85%

LinkedIn’s (LNKD) Marketing Solutions segment provides a variety of advertising options to its marketers with products such as Sponsored InMail and Sponsored Updates. Sponsored Updates has been the fastest-growing product in comparison to the other suite of products under Marketing Solutions.

Moreover, it drives the majority of revenue generated from Marketing Solutions. For the recent quarter, Sponsored Updates’ revenues grew by 85% year-over-year (or YoY). For the first time, it constitutes more than 50% of total revenues generated from Marketing Solutions.

LinkedIn Streamlines the Process of Targeting Ads and Campaigns

Automated ad targeting

LinkedIn (LNKD) invests aggressively in Sponsored Updates, with the aim of incorporating additional functionalities and streamlining the process of targeting ads for the marketers. LinkedIn recently developed a new way to facilitate the way marketers target companies and generate sales. Marketers can import their lists of sales accounts to LinkedIn’s data repository. The data can be cross-checked to ~8 million company pages on its web portal to find the appropriate target segment.

Russell Glass, LinkedIn’s Head of Products, Marketing Solutions, noted that there are several advertising features available through Marketing Solutions. Marketers can utilize these features to execute the process manually with a limit of 100 companies. However, the new automated functionality can customize the Sponsored Updates or Sponsored InMail to broaden the target exposure.

Tech giants such as Facebook (FB), Google (GOOG), and Twitter (TWTR) utilize programmatic ads that target users on the basis of related pieces of information. In the case of LinkedIn, the sales data is more structured and defined, which could create better value for the marketers.

LinkedIn constitutes 0.37% of the Vanguard Extended Market ETF (VXF)

Latest articles

19 Jul

Afya's IPO Sees Strong Listing Gains

WRITTEN BY Mohit Oberoi, CFA

Afya (AFYA) listed on the Nasdaq Global Select Market on July 19. The company priced its IPO at $19 per share.

19 Jul

What to Watch For in Amazon's Q2 Earnings

WRITTEN BY Sanmit Amin

e-Commerce giant Amazon (AMZN) is scheduled to report its second-quarter earnings results after the closing bell on July 25.

19 Jul

Barrick Gold Reaches Deal to Buy Acacia Mining

WRITTEN BY Anuradha Garg

After a long standoff, Barrick Gold (GOLD) and Acacia Mining (ABGLF) have reached an agreement.

19 Jul

Comcast Shares Pop on Goldman's Optimism

WRITTEN BY Ruchi Gupta

Comcast (CMCSA) shares popped after Goldman Sachs issued a positive note on the company recently. Goldman upgraded its rating for Comcast to "buy" from "hold."

19 Jul

Why Analysts Are Bearish on Netflix Stock

WRITTEN BY Aditya Raghunath

Netflix stock fell over 10.0% on Thursday and is down 0.5% today as well.

On Thursday, pet retailer Chewy (CHWY) reported its first-quarter results after the market closed. The company reported its earnings for the first time.