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LinkedIn

Will Microsoft's Purchase of LinkedIn Affect its Marketing Potential?

When it comes to professional networking and generating business leads, no other social network compares to LinkedIn. With over 400 million global users, LinkedIn is particularly valuable for business to business marketers, being the most important platform to make valuable industry connections.

Despite LinkedIn seeing slower than expected advertising growth in the last year, it was recently purchased by Microsoft for $26.2 billion. This sale gives Microsoft access to a wide array of user data and signals the strength of their belief that the software business is shifting to cloud based computing.

While Microsoft and LinkedIn traditionally operate in different businesses, both companies cater to professionals, with Microsoft officials stating that the deal is “all about bringing together the professional cloud and professional network.”

So what could this deal change for marketers?

Microsoft was one of LinkedIn’s biggest customers, both in terms of promoting services and products and in terms of recruiting employees. However, while the deal potentially makes these ties even stronger, the two companies will operate independently. Despite this independence, Microsoft will still have the advantage of direct, unrestricted access to LinkedIn’s data and platform.

Thus it seems likely that, while Microsoft are no longer the intimidating juggernaut they once were in the tech world, LinkedIn will become increasingly Microsoft dominated, to the detriment of smaller software businesses using the platform to market themselves.

However, the financial backing of Microsoft will strengthen LinkedIn’s financial position as they search for new revenue streams, potentially creating new marketing opportunities. For Microsoft affiliated brands, this deal also offers the potential for greater synergy and brand exposure.

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