Why LinkedIn is Getting into TikTok-Style Video Feed: A Strategic Move for Product Growth

LinkedIn's decision to implement a?TikTok-style video feed is a strategic pivot aimed at enhancing user experience and engagement. ?This strategic decision is not just about keeping up with trends; it’s a calculated effort to redefine professional networking in the digital age.

Here’s a deep dive into the details of this feature, the market landscape, and what it means for?LinkedIn's future growth.

The Video Content Market: A Growing Opportunity

• Video Advertising Market:?The global?digital video content market?is projected to grow from?193 billion in 2023 to an astounding 503.7 billion by 2032, as per studies, at a?compound annual growth rate?(CAGR) of?10.9%: Sources
• Enterprise Video Market: Anticipated to expand from?23.8 billion in 2024 to 35.8 billion by 2029, with a CAGR of?8.6%.

Why Video is Crucial for?LinkedIn’s next-level growth

• Attract New Users: Younger professionals are increasingly drawn to platforms that offer dynamic content.
• Increase Time Spent on Platform: Video content significantly boosts engagement rates. According to recent studies, posts with video receive?48% more views?than those without. This aligns perfectly with?LinkedIn's goal of fostering meaningful professional connections.
• Enhance Brand Loyalty: By providing valuable content,?LinkedIn?can strengthen its position as a leader in professional development.
• Authenticity and Trust: Video allows users to present their authentic selves, building trust with their audience. This is particularly important in a professional context where personal branding is key.
• Career Development: The new video feed could enable users to share quick tips on resume building, interview strategies, and industry insights, positioning?LinkedIn?as a go-to resource for career advancement.

LinkedIn’s leadership has been vocal about the importance of video content. Ryan Roslansky , CEO of LinkedIn, stated,

“Video is a powerful medium for professionals to share their stories, insights, and expertise. By integrating video, we aim to make LinkedIn a more engaging and dynamic platform for our members”.

LinkedIn's Subscriber Growth and Financials

As of?2024,?

• LinkedIn?boasts approximately?134.5 million daily active users, with a?55% increase in premium subscriptions?reported in Q1.
• The platform's revenue reached?16.37 billion in the fiscal year 2024, marking a significant increase from 16.37 billion in the fiscal year 2024, marking a significant increase from 14.9 billion?in 2023.
• Monthly Active Users (MAUs): Over 800 million users, showcasing the platform's extensive reach.
• Premium Subscriptions: A 55% increase in premium subscriptions reported in Q1 2024, reflecting strong demand for enhanced features.
• Revenue Growth Rate: A 7.4% increase in revenue in 2023, marking the highest growth rate in three years.

This growth is indicative of?LinkedIn's expanding influence in the professional networking space.?

Growth Metrics:

Key metrics

• Impressions: Tracking impressions is crucial; video content typically garners higher impressions compared to text or image posts.
• Unique Impressions: This metric helps gauge the reach of content, indicating how many distinct users have viewed a post.

Content Performance metrics

• Content Engagement: LinkedIn's video posts are expected to outperform traditional posts, similar to how?Instagram's reels have transformed user engagement.
• Brand Mentions: Monitoring how often brands are mentioned can provide insights into brand visibility and reputation.

Follower Growth metrics

• Follower Count: Tracking the growth in followers can indicate the platform's expanding influence and user interest.
• Demographics of Followers: Understanding the demographics of LinkedIn's user base helps tailor content and marketing strategies effectively.

Localized Content and Growth in India:

India has become a critical market for LinkedIn, with a 20% year-over-year growth in membership and engagement. The platform’s new video feature aims to enhance knowledge sharing among its growing professional community.?Ajay Dutta highlighted,

"Every minute on LinkedIn, nearly 6 people are hired, over 9,000 connections form, and more than 100 hours of learning content is consumed".

This underscores the importance of video in driving engagement and providing value to users.

?Conclusion

LinkedIn's foray into video content is a strategic move that aligns with market trends and user preferences. As the platform continues to innovate, it is poised to redefine professional networking, making it more engaging and valuable for users. For product managers and founders, this shift underscores the importance of adapting to market demands and leveraging emerging technologies to drive growth.

In a world where video is king,?LinkedIn?is not just keeping pace; it is setting the stage for the future of professional networking.