Since Elon Musk took the helm at X, advertisers have been walking away from the social media platform. Meanwhile, others are taking advantage, chief among them LinkedIn. Advertising space on that website now costs up to 30 percent more than before.
Speaking to The Financial Times, Leesha Anderson, VP of Digital Marketing & Social Media at marketing agency Outcast, said it is “LinkedIn season.” “Most [customers] have switched to LinkedIn in the past year. A few weeks ago most of our clients were off X. Now they are all off X.”
LinkedIn saw its ad revenue increase 10.1 percent year-over-year, bringing revenue to nearly $4 billion. The results are also impressive for advertisers: advertising yields an average return on investment of 20 percent.
Meanwhile, the cost for 1,000 impressions for an ad is said to cost up to $300 for some customers. A similar package for Instagram or Facebook would cost between $10 and $15. LinkedIn ad space prices are determined by auction, so they can fluctuate widely. Still, the example shows a huge gap between LinkedIn and the competition. It seems to be benefiting the most from the advertiser exodus that has taken place on X.
Declined in value
Since Elon Musk bought Twitter in 2022 for $44 billion, the platform (now X) is said to be worth only 29 percent of that. Musk’s erratic behavior as owner of X has driven advertisers away, especially when it was found that advertising would often appear alongside hateful and offensive posts. In addition, the platform now seems unable to counter the spread of disinformation, prompting an investigation by the European Commission.
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