LinkedIn to test video ads on streaming services, specifically targeting LinkedIn’s 930 million subscribers.
Microsoft Corp-owned (MSFT.O) LinkedIn said on Thursday it was working on a video advertising product that would allow marketers to target users of the professional networking site while they watch content on streaming services. For LinkedIn to test video ads it will be trialled by the social networking platform predominantly at its existing users when they watch movies and TV shows.
This comes after LinkedIn introduced AI features to help advertisers write ad content, part of a strategy to expand its ads business at a time when economic uncertainties have hit advertising budgets.
“In-stream video ads can change the way brands and buyers reach and engage their audiences,” Penry Price, vice president of marketing solutions at LinkedIn, told Reuters.
LinkedIn’s trailing 12-month revenue is north of $14 billion, and as of the third quarter of fiscal year 2023, revenue increased 8% year-over-year.
The company generates revenue from ad sales and subscriptions for recruiters, job seekers and sales professionals.
Why we care: Marketers could potentially increase their ROI and subsequently boost revenue as it is an opportunity to reach their target audience more efficiently.
Why now? LinkedIn makes most of its $5 billion revenue from ads sold on its news feed. The social networking platform, which is already up 8% year-on-year in sales, is reportedly now looking to boost profit further by exploring the fast-growing ad streaming sector.
The move comes just two weeks after LinkedIn announced it was piloting generative AI features to help advertisers.
What has LinkedIn said? “In-stream video ads can change the way brands and buyers reach and engage their audiences,” Penry Price, vice president of marketing solutions at LinkedIn, explained to Reuters.
News Source: Reuters