LinkedIn Is Making This Bet on Mobile
LinkedIn (NYSE:LNKD) executives showed off their company’s impressive mobile growth during the conference call yesterday afternoon following up their first-quarter earnings report. LinkedIn said mobile accounted for 22 percent of unique visitors, up 8 percent from the same period last year.
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CEO Jeff Weiner revealed that the adoption of the recently launched Apple (NASDAQ:AAPL) iPad app has exceeded LinkedIn’s “aggressive” expectations. Currently, Weiner considers the iPad app to be LinkedIn’s strongest area. However, many have been quick to question whether mobile is a smart and safe move for the company.
The professional networking site — along with other Web companies — has been slower to monetize mobile, which means a shift in that direction could negatively impact revenue. Weiner argued that as LinkedIn brings all its business lines into the mobile environment, the company’s transition into mobile should be accretive. He said premium members will receive premium access on the mobile app, in addition to mobile advertising.
During the conference call, Weiner elaborated on LinkedIn’s strategy to monetize its mobile apps. With the iPad app, ads will most likely resemble those currently found on the website, he said. The company is well aware of the fact that smartphones have a limited spatial arena that must be accounted for in regards to advertising. Accordingly, LinkedIn will be experimenting with custom ad types designed specifically for the iPhone and Google (NASDAQ:GOOG) Android phones. The company will promote companies to follow or post relevant ads in the news stream in the near future.
Investing Insights: Wall Street Watch: LinkedIn Earnings, Facebook’s IPO.