LinkedIn Finally Discovered by Luxury Advertisers

The social platform LinkedIn has managed to exceed quite generous forecasts regarding its revenue growth. Although the research company eMarketer predicted that by the end of 2021, their revenues would increase by 26 percent and exceed $2.6 billion, current figures show that the final financial results will be better than expected.

Namely, LinkedIn already reported results in the second quarter that are even one hundred percent higher than in the same period last year, while they generated over a billion dollars from advertising. What particularly surprised experts is that premium brands such as Mercedes-Benz, Cartier, Audi, and Louis Vuitton participated in those revenues with a much larger share than usual, confirming that luxury players have finally started to notice this social platform and realized that advertising on LinkedIn can indeed be profitable.

Luxury Enthusiasts

As reported by The Drum magazine, consumers and brands in the luxury category have previously preferred networks like Instagram or Facebook, but now they realize that among 744 million LinkedIn users, there is a very large share of those with high incomes. More specifically, users, or households on LinkedIn, earn on average more than on any other social network. Furthermore, according to a study conducted by the platform itself, users who visit LinkedIn have a 14 percent higher intention to purchase a premium product compared to users on other networks, and 22 percent plan to spend more on luxury.

Additionally, more users plan to spend time on LinkedIn this year, as they consider it an essential tool for finding (better) jobs and networking with colleagues and potential partners (pandemic restrictions). All these arguments are more than enough for brands to start allocating larger budgets for advertising their products, not just jobs, since LinkedIn was perceived until recently as a platform for B2B rather than B2C advertising. Or, as The Drum concludes, LinkedIn has become the ideal platform for advertisers, especially from the luxury world, to reach highly engaged professionals with serious purchasing power and the ability to influence their business and private communities.