LinkedIn (LNKD) is gaining momentum in the mobile segment with 38% of users accessing the site through mobile devices. The flexibility and user friendly approach of mobile devices helped this professional networking company reach more active job seekers. With around 1.04 billion worldwide smart phone users, the engagements are increasing on the LinkedIn site. In Singapore and Denmark, it has seen more than 50% of unique visitors from mobile devices.
Source: LinkedIn Talent Solution
To make the mobile segment effective, LinkedIn launched "Mobile Work With Us" and "Recruiter Mobile," in the second half of this year. It allows users to connect with employers and makes it easier to communicate with the candidate through smart phones. The Recruiter Mobile facilitates the recruiter connecting with job seekers through the job applications and eases the interaction between the candidate and hiring managers. The recruiters then reply to candidates via InMail. To take this advancement to the next level, LinkedIn launched LinkedIn Intro service for its mobile segment. This application is an updated version of Rapportive, which LinkedIn purchased in January this year. LinkedIn Intro integrates with Apple's Mail, Gmail, AOL mail, and Yahoo! Mail. While the recruiter responds to candidate InMails, candidates can see the LinkedIn profile of the recruiters and hiring managers. Moreover, the candidate can view recruiter's other contacts in his profile and can easily join them. So, allows a candidate to enhance his professional networking contacts. Now, with LinkedIn Intro, candidates can send e-mails to all the contacts of recruiters and hiring managers, and they can showcase their updated LinkedIn profile and increase the probability of being noticed. Both the "Mobile Work With Us" and "Recruiter Mobile" products in mobile segment have already gained importance as more than 30% of job views came from mobile devices.
(click to enlarge)Source: emailmonday.com
50% of the subscribers access their emails from mobile devices. Moreover, in countries like the U.S., the U.K., China, and Brazil the percentage of e-mail access by smart phones is more than 50%. So, it is clear that mobile e-mail users are growing and show more engagement. Hence, LinkedIn has an opportunity to penetrate the mobile e-mail market, and I expect LinkedIn Intro will show more user engagement than "Recruiter Mobile" and "Mobile Work With Us" in the future.
Another player in the recruitment platform is Monster Worldwide (MWW) with 200 million users globally. Monster has also focused on the mobile segment by developing its mobile recruitment application for iPhone and iPad. To make the company's recruitment site more advanced, it introduced video profile. With video profile, recruitment companies can expect more user engagement on the site. Any recruitment company can highlight its work culture, environment, and company snapshots to attract more candidates. So, more active job seekers will visit the Monster Worldwide site and recruiters will have choices through the company. The candidate engagement on the Monster site will attract recruiters to find active job seekers. Therefore, the company will witness more job post subscriptions along with other subscriptions from recruiters to find a potential candidate.
Premium Subscriptions: A revenue growth Driver
The Premium subscription segment of LinkedIn gained more attention this year with $79.8 million in revenue, growth of 61% year over year. It contributed 20% to the total revenue of LinkedIn. Moreover, the company's initiative to create pages in 41 different languages helped it attract more premium subscribers since the acceptability increased between recruiters and job seekers in different regions.
The U.S. unemployment rate decreased to 7.3% in November from around 7.8% in January. Subscription plans are coming with different recruitment facilities, and these plans provide recruiters with an advanced way to search for potential candidates. As a result, LinkedIn witnessed a growth in the number of total corporate customers, adding 1700 additional corporate customers in the third quarter this year. In the U.S., 70.6 million people use LinkedIn as a primary job search option, and I believe more recruiters will join the premium subscription segment to find potential candidates. Hence, more subscriptions will help strengthen this segment in the coming quarters.
Marketing Solution: Growth continues
Apart from LinkedIn's premium subscriptions, the company also showed improvement in revenue from its ad initiatives. To increase the advertisement revenue the company allows different brands to create product specific pages with an option of bidding. It helps the company to offer content marketing with more user engagement. Companies like Adobe, Microsoft, and HP previously created their company pages for job openings and status updates, but now these companies can also showcase their product lines and create substantial attention. I believe this specific and customized ad initiative of LinkedIn will bolster the company's long-term growth.
In the third quarter, Facebook ad revenue jumped 60% to $2.02 billion, and mobile ads represented 49% of the total revenue. Facebook has created opportunities for small businesses as well; a small business entrepreneur will get up to $98 as a free credit to post ads. This ad initiative was available for 50,000 small businesses in the United Kingdom and Ireland previously, and it has a plan to expand this facility in other European countries this month. This innovative success-based advertise model will allow small businesses to enjoy local ad market penetration. It will attract more small businesses and advertisers to the social networking ad benefits with a free start up credit.
LinkedIn has diversified its product, and has shown tremendous improvement in the mobile segment. The increasing popularity among job seekers and employers will ensure growth in its user base in the coming years.