A Map of LinkedIn’s Product Lines - And Its Biggest Threat to Media Companies

Among b2b media and marketing executives, LinkedIn is discussed today the same way Google was ten years ago — in hushed, ominous tones. It’s the new elephant in the room.

The question on everyone’s mind is: To what extent is LinkedIn a threat to my business?

In the course of providing guidance on this, I haven’t been able to find a map of all of LinkedIn’s product offerings. So, I took a shot at producing one:

As you can see, LinkedIn’s product offerings are oriented around its three main lines of revenue — Talent Solutions, Marketing Solutions, and Premium Subscriptions — and an emerging set of media features.

The two areas causing consternation among media and marketing execs are, obviously, Marketing Solutions and Media. Here’s what I tell these folks:

The Big Threat #

The big threat posed by LinkedIn is its growing share of eyeballs and marketing dollars that historically have gone to business media. (Can you hear that sucking sound?)

With LinkedIn Today, LinkedIn is increasingly positioning itself as a content distribution platform — and it’s doing a remarkable job. In essence, LinkedIn is becoming a media business.

As its media efforts drive more daily active users, LinkedIn’s advertising options are likely to set the bar for the b2b marketplace. It’s ability to target by demographic, while offering personalized content, is a formidable combination.

LinkedIn’s new Sponsored Updates offering, for example, serves up white papers, webinars, and insights to targeted executives in the mix of other content. It’s almost certain to attract a greater share of the content marketing dollars that b2b media companies and agencies depend on.

Similarly, LinkedIn’s media efforts are likely to make its cost-per-click offering more competitive with Google’s, with a heavier tilt towards b2b. Its ability to target based on user data is a significant competitive advantage. Don’t be surprised when you see more b2b lead-gen dollars going to LinkedIn.

The Good News #

The good news is that LinkedIn’s threat is pretty evenly spread (ok, unless you’re in the recruiting space). Its platform approach, like Google’s, ensures a more diffuse impact on media and marketing businesses.

LinkedIn has an under-exploited asset in its Groups, but I don’t see it leveraging these to “go deep” in different verticals. I also don’t see LinkedIn building community within niche sectors in a thoughtful way. Its platform orientation doesn’t make vertical customization a low-hanging opportunity. It has bigger fish to fry across its three businesses.

B2B media businesses can compete and win by serving niche sectors at a deeper level and with much more community than LinkedIn ever could. So long as media companies can attract core industry decision-makers better than LinkedIn, they should remain competitive for advertising dollars. Conferences and events are a particularly ripe area for media companies to go on the offensive. I don’t see LinkedIn putting on sponsored breakfasts or industry trade shows any time soon.

For marketing agencies, LinkedIn will create new service opportunities, just as Google has over the last decade. Just think about how much money agencies have made off of managing SEO and pay-per-click campaigns. Similar opportunities will emerge around LinkedIn’s offerings, particularly in content marketing.

My Rec #

My recommendation to media and marketing folks is to go on the offensive. LinkedIn is a reality in the marketplace. It’s changing the game and creating a ton of value in the process. By accepting this and thinking several moves ahead, you can recalibrate your strategy and use LinkedIn’s rise to your advantage.

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