The latest figures released by Hitwise indicate that traffic to LinkedIn is up 323% in the last year and 17% in the last week alone. It’s a healthy rise, and something LinkedIn should be pleased with, however the real question becomes: is this growth high enough given the rising popularity of Facebook as the social networking destination of choice?
The comScore figures speak for themselves:
The natural reaction by some will be to argue that comparing LinkedIn to Facebook is like comparing Apples and Oranges, and in part that is true. LinkedIn provides a more focused business networking product and it works fairly well for that purpose, but people flock where other people are going and nearly everyone who takes their social networking seriously (ie: adults) are joining Facebook.
By no means is Facebook the perfect business networking platform in comparison. The relationship options for new contacts remain a bit of joke, yet it would be stupid to believe that this will always be the case. Facebook will improve their product to satisfy this market, it’s not a question of if but when.
LinkedIn is trying to respond to the Facebook challenge; as we wrote June 24, LinkedIn is moving to open up its platform to third party developers to better compete with Facebook, but the delivery time on the project was said to be “in the next 9 months”. LinkedIn has added new features such as an Answers service and service recommendations, and also has $25.8million in funding behind it.
The problem for LinkedIn is now time. As Facebook powers ahead with a superior and more compelling offering, the relatively static LinkedIn may continue to operate, but it faces the real risk of becoming irrelevant in the medium term, if not more quickly.
Previous TechCrunch LinkedIn coverage here.
That’s a very good question and certainly a little more time will tell. Stay tuned
I wish my sites had that much traffic…
It’s obviously not enough to get back in the big game, and I doubt that LinkedIn would want to be relegated to a niche, but I do think there is room for niche players in the world. And if you’re not bogged down in venture capital money, you can actually be profitable long-term I think.
Time will tell.
Duncan – I’m puzzled as to why you are comparing Linkedin to Facebook? Have you used either of these sites? Linkedin is for professional networking. Facebook is for keeping in touch with college buddies. If I’m hiring a position I go to my Linkedin network. When I’m looking for Friday night drinking buddies I go to Facebook.
You got it right in the second paragraph – this is an apples to oranges comparison.
I was shocked when combing LinkedIn to find many executives over 40, from a Bank none the less (from Cleveland Ohio none the less!) registered and active on LinkedIn. Its certainly an relevant niche, without the hype and youth connotations that may steer the same folks away from Facebook (albeit a very clean social networking platform).
I’ve always thought Linkedin was overrated. It’s only a matter of time before similar/if not better networking features are available on Facebook. This combined wit richer profiles and ability to connect with others based on interests is what a true networking svc should be about.
A good number of LinkedIn users are also forking over money every month for expanded memberships (those are not cheap); that’s one source of revenue that FaceBook can’t claim. I’d rather have 10,000 users paying $20 a month than have a 100,000 seeing ads; it makes financial sense, shows that users are committed and believe in the platform enough to invest their discretionary income in it, and attracts people who are less likely to chase after the next big shiny thing. That’s a solid, viable business that is not hedging its bets on an exit strategy of some sort.
The thing is, people arent nearly as willing to pay for facebook. People will spend money on linkedin because it has to do more with their career. Your average facebook user is a broke college student(not all)
Duncan
Your question was, ” is it enough?”. Enough for what? Be really successful? Of course it is. I’m sure that when you compare ebay to amazon, one has more traffic and growth than the other. IS THAT ENOUGH? DUH !
Dominic
Duncan, interesting post. Facebook seems to be the first pure social networking site where business professionals congregate (at least tech folks), and I agree Linkedin should be paying attention to this
But I’ve always thought Linkedin was one of the best examples of a “nitche” play on the web. Its a fantastic product, and their premium services are generating them a lot of cash. Most people don’t realize how many heavy hitters are on that site, and I just don’t see top level execs in their 40s – 60s migrating over to facebook in droves anytime soon. My money is on likenin holding their own and continuing to grow.
LinkedIn is underappreciated and underestimated by most folks, especially those who don’t use it. For those that do use it, it’s a valuable, well designed tool. They’ve only scratched the surface of what’s possible with the service. Facebook is interesting too, but as a business tool LinkedIn is the one to watch.
I think it is too simplistic a method to compare niche social networks such as LinkedIn to the two big general social networks (Facebook/MySpace) on a surface traffic level. LinkedIn may have a much smaller userbase but I see them having a better chance of monetizing the userbase they do have with premium services since their users may be more willing to part with a few bucks if it may help their career along. I see value there.
Although Facebook/MySpace have huge ad deals with Microsoft/Google, there have been indications that FB/MySpace click through rates for ads are less than impressive which is a major challenge they will have to overcome for long term viability. What’s the use of all that traffic if it doesn’t convert well for advertisers?
IMO, LinkedIn may end up being considered a success even if it doesn’t keep up with the big 2 SNs.
LinkedIn needs a killer app. I only use it to keep track of old-coworkers. I’ve yet to have someone tell me they’ve gotten a successful introduction from it. It’s a great concept though. I just wish they figure out how to monetize it well beyond what they are doing today….I have an idea for the killer app, but I’ll wait until they have an API. If they don’t FB gets it! (hint: Question is how to get early API access..feel free to contact me via LinkedIn)
My Score:
+—+
: 8 :
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Morris
yes, I’ve used BOTH, and Facebook is being used more and more for business networking, indeed I, and others I talk to are getting more and more business networking requests via Facebook these days (in fact for me it would be 90% Facebook or there abouts). It’s also long since moved on for being used by “college buddies”…indeed you might be about 12 months out of date.
Dominic
Facebook is swamping LinkedIn in terms of networking traffic, People are using Facebook for business networking…DUH!
Rohan
point taken on some levels, although I think (and still think) that LinkedIn’s biggest competitor now is Facebook given the changing demographics and professional bent of Facebook. We’re quick to compare Facebook to MySpace but the more I use Facebook the more different I think it is in terms of that comparison. It’s also why I’m starting to think Facebook will never beat MySpace, the demographics are just that much different: Facebook is for adults.
hmm….the gap is getting wider over time. LinkedIn better come up with some good idea to make it more useful to people. It’s a great site, but I feel that facebook is a lot more useful, hence the higher traffic.
I’m soooo tired of the facebook hype… LinkedIn is not going anywhere… Facebook… who knows…
I’d take the 6 billion from MS and run while your company is hot!
“…given the rising popularity of Facebook as the social networking destination of choice?”
Duncan: it’s well-established with data that, while Facebook is growing rapdily, MySpace is still by far the most popular social networking destination and is actually showing stronger growth in certain metrics. Therefore I’m confused as to where you come up with this notion that Facebook is becoming the social networking destination of choice. Maybe it will be at some point, but one of the biggest problems I have with many of your posts is that you frequently make bold statements that have no data to support them. Further, some of these statements are refuted by well-publicized data.
You might want to consider making it clear that some of your statements are opinions. “I believe”, “I think”, and “I predict” go a long way. With these, your sentence could go from something that makes you look ill-informed to:
“…is this growth high enough given the rising popularity of Facebook, which I believe is rapidly becoming the social networking destination of choice?”
or:
“…is this growth high enough given the rising popularity of Facebook, which I predict will eclipse MySpace as the social networking destination of choice?”
It’s difficult for somebody to refute a personal opinion or prediction, even if he or she doesn’t agree with it. When you state things as fact when they are not, you lose credibility, which of course makes your opinions less relevant. After all, why would we take your opinions seriously if you can’t even present facts correctly? Sorry to be an arse but I’d personally enjoy your posts a lot more if you present fact as fact and opinion as opinion. Of course, you don’t write to please me so I’ll simply expect more of the same.
In regards to real point of your post, comparing LinkedIn to Facebook is not a worthwhile exercise in my opinion. One is a focused, niche offering while the other is increasingly trying to be all things to all people. Furthermore, LinkedIn has built a viable business through diverse revenue streams, including paid services, and has criticial mass/network effects. There is room for multiple winners in most markets, and I think that’s true in the social networking market. Five years from now, both LinkedIn and Facebook could be very successful businesses, or they could both be gone. The outcome is more likely to be determined by their own internal decisions than it is by the other.
Personally, I plan to keep using LinkedIn for business, Facebook to find keggers to crash and MySpace to meet other swingers.
http://www.dram...into-linkedout/
Again with the blunt assertions about the dominance of Facebook. Only this week Arrington wrote a post about the continuing dominance of MySpace (http://www.tech...still-the-king/). What statistics indicate that adults flock to Facebook as their social network of choice? What statistics indicate that professionals are meeting this way?
I believe you when you say your experience is that Facebook is providing the majority of your business networking but that’s not an objective statistic. That’s an anecdote. I can tell you that 99% of my friends don’t do any business networking over Facebook. Nor would they want to. Facebook has their blog entries about going out and getting pissed the night before and compromising photos of said going out.
What is superior about the Facebook offering as a professional meeting point to the LinkedIn offering? You assert but provide no evident to back it up. The last time I used LinkedIn it was the only one providing tools that were useful for finding people or finding jobs. I would hate to try to use Facebook to try to find an employee. I mean what would my search term be?
First of all, I think people who think Linkedin can (or tries to) compete with Facebook are dreaming. Why would a site filled with over 35 year old professionals compete with a site filled with 18 year old to 30 year olds.
Second, Linkedin and Facebook are very different. You use Linkedin to get in contact with recruiters and hiring managers. You can’t do that in Facebook and I really hope Facebook will not try to get into business networking or job networking because that is not what Facebook is about.
Third, I use Facebook to connect with “Friends” not business professionals. If i want to contact business professionals i will go elsewhere or Linkedin.
Conclusion: Facebook should not try to be like LinkedIn and Linkedin should stay the way they are and not try to compete with Facebook.
Commenter 17+18
If you go through the archives you’ll also see that I’ve written that MySpace is still dominant as well…you’re totally missing the context, which is serious networking Facebook vs LinkedIn. MySpace is for kids, Facebook is being used for serious networking. Drama 2.0, there’s little doubt that amongst adults that Facebook IS the social networking destination of choice, it’s not an opinion, its fact. Again, MySpace has 3x the traffic and about 4x the users BUT the demographic is different. Indeed, I’m at the stage now where I’ll be hesitant about ever comparing the two: they are very, very different services.
Facebook’s usefulness is going to fade. If their traffic is growing so much, why are their data center cages sitting half empty? Could it be that their click through ad rate is completely overrated?
Linkedin’s model is simple and useful. If they expanded their job recruiting features with something like jobvite, they could take on monster.com.
“nearly everyone who takes their social networking seriously (ie: adults) are joining Facebook”
I meet folks at the various web related mixers in SF and there is a fairly clear division between the sort that add you on facebook and the sort that add you on linked in. The folks that didn’t have Facebook in college and don’t currently have a myspace page will probably add you on Linked-In.
Facebook and Myspace are like your personal garden. You decorate them. You add little bits that personalize it for the person you are. Linked-In is like walking into a hospital. The stats are very clinical… “Your network is 65% complete”. No icons, no pictures (Which is a *HUGE* shortcoming, matching name to faces is necessary for even professional networking).
How many of you Adults are on facebook? I’d love to expand my professional network on facebook, if possible.
I still think anyone over the age of 35 who is avidly using facebook seems kind of creepy. And I think a lot of people agree with me. Again no one I know (my age etc) is using Facebook unless to check up on their kids, but they use LI and MySpace a lot, for totally opposite purposes. Facebook has a long way to go to overcome their notoriety of being a social networking site for college kids. I know, I know it’s ‘worship Facebook in the Valley time’ but I’m just not seeing it.
I checked out Facebook now again since you give the impression that they are so great.
For me the exact same happened though as 6 months ago.
While I find lots and lots fo former colleagues and business affiliates on LinkedIn I cannot find anybody in Facebook. I repeat nobody. I work in IT marketing/sales and I am quite puzzled how you can claim Facebook is so much better than LinkedIn. This is definetely untrue for me so I will continue using LinkedIn and leave Facebook in peace until I read another hype story then I will check it out again and see…
BTW, I am not sponsored by anyone I am writing here about.
I think Linkedin will continue to thrive as a professional social network. I’m beginning to know more and more people who are on LinkedIn and not Facebook – and vice versa.
The web is getting so big, there’s plenty of room for everybody. Facebook, Linkedin, Myspace, FantasySportsMatrix.com, Bebo, everybody. =)
Duncan,
I did find one post where you’d written about MySpace being dominant.
Good point. Why then kick the hyperbole machine into overdrive in your subsequent posts?
LinkedIn to Open Platform in Response to Facebook
MySpace Likely to Open Platform to 3rd Party Developers
Now maybe I am missing the context (serious networking) but that’s because you didn’t provide it for me. You assert (again) that Facebook is what adults use (presumably for serious networking) and yet you provide no statistics and no evidence to back it up. No one I know uses it for serious networking and presumably this is the case with others who have raised questions. That’s all well and good, maybe we’re all the exceptions. But where’s the evidence for what you’re saying? I looked through your previous posts and you have not provided any statistical evidence in any of them to support your claims.
Now at the risk of sounding crazy, I’d like to go on the record and say that I actually think you’re right. I’m 24 and I never understood MySpace either. I use Facebook as do all my friends. I think Facebook is becoming the dominant platform. I think it has the potential to be as revolutionary as Google. I think it really is the next big thing. But those are opinions based on intuition. They are not arguments. I’m allowed to have them, as are you, but if I’m writing for a major weblog and I make sweeping statements I want to have something a little stronger than what me and my buddies are using as the basis for it. Otherwise I run the risk of sounding foolish and making the outlet I’m writing for sound foolish as well. I want to believe you but I need some evidence.
I’m in complete agreement with the general sentiment here that this is a wasted comparison. I’m also in complete agreement that Duncan presents opinions as facts. Even in his rebuttal, he continues to boldly state opinion:
“MySpace is for kids, Facebook is being used for serious networking.” With a claim like that, I would love to see some objective data on the average age and demo percentages of Facebook vs MySpace users. Simply saying that data is available “elsewhere” is irresponsible reporting.
Based on my own “facts”, it’s not my own definition of “adults” who are flocking there — very few of my 30+ friends are on it, and those are all in media/tech. Many of my under 30 friends are on it, the most active under 25.
Incidentally, after trying it out for a few months, I fail to see the hype. It’s simply Friendster 2.0, a clean but restrictive social network with the ability to add slightly more aesthetically palatable bling (read: “apps”) than Myspace. The “networks” evolution is minor, and is poorly conceived from the interaction design side. Yawn. In 9 months “adults” will have tired of all those very shallow “apps”, and something else will come along.
If you’re going to _force_ a comparison, LinkedIn seems a much more viable product with a real revenue model and room to grow its feature set in a meaningful way to its core application. I’d bet on it outlasting Facebook as a “serious” product, traffic numbers be damned.
What Jay
so your saying that MySpace is for 45 year olds with adult kids? There was some data at one stage claiming older group participation on MySpace was high but that was later rebutted by other figures. It would take no longer than 5 minutes of MySpace to find that users of MySpace are (mostly) young. Blind Freddy could see that, I’m not sure how I’m suppose to prove the clear to see, blatantly obvious to all but the blind and infirm fact that kiddies like MySpace.
As for Facebook, you need to do nothing further that search coverage across Web 2.0 on Facebook, from Facebook Apps through to the various business related groups that are booming on Facebook (a small number of which I’m also a member). People are flooding on to Facebook: I’m not saying that it’s going to pass MySpace, indeed (to those saying that I am) check my previous coverage; I’d be really surprised if Facebook ever surpasses MySpace (on evidence to date it never will)…however the demographic on Facebook IS different. From it’s origins in colleges it has a more qualified (tertiary educated) profile that is using networking in a different way to the glib and shallow “friend sharing” on MySpace. FACT. If you don’t like Facebook so be it, but it’s still being used in ways that were once the exclusive domain of LinkedIn FACT. That makes it a competitor in the space.
What’s this got to do with the iPhone?
Just kiding. The strategy for LinkedIn was obvious from the beginning. Enable professionals to build an organic network around individuals of interest. It’s an excellent model and it’s amazing who you can find. Facebook didn’t evolve around this, but Facebook could/will blitz LinkedIn as a business exchange marketplace because of the tools it provides to create rich collaborative experiences. MySpace is truly a phenomenon, an example where design and compelling user experience doesn’t matter. What would a MySpace influenced iPhone look like? Scary thought.
Duncan
I suggest you go to sleep and maybe tomorrow you see the world of Facebook with clearer eyes. It is not a LinkedIn type of place simply because there are no people in there with the same demographical background, at least I have not found any… I’d be glad to use Facebook if it would be different but it is NOT, maybe in 5 years it is?
BR
RH
Ralf
it’s not even dinner time here as a type this, so maybe you should hit the sack.
To those who don’t think that Facebook and LinkedIn are in the same market: explain LinkedIn planning to open up its platform ala Facebook style? What, you think it’s a stand-alone random act of genius that has nothing to do with Facebook Platform? lol
Cmon people, even LinkedIn can see that Facebook is a competitor and is playing catch up to stay competitive in an evolving space. I’m not saying LinkedIn is dead, indeed there’s a lot to like about LinkIn, but it DOES face the possibility of becoming irrelevant in the MEDIUM term (as noted in the post) as Facebook continues to cover more and more of same people and market LinkedIn itself covers.
What can be seen in the historical evolvement of different industries is that after the initial pioneering efforts, a few dominant players emerge. After that a phase of niching begins if the total market is big enough, where more companies cater to a more diversified demographic. Then, convergence of these niches occurs again.
Taking this analogy, the first league of pioneers in the social networking space such as Facebook, LinkedIn, Xing are obviously in dominant positions now. What we have been seeing since the last half of 2006 is the emergence of a broad variety of niche social networks (our http://www.iHipo.com is one of them for International Jobs and Internships) and I think this trend will continue for quite some time. Facebook disrupted this industry evolvement analogy by allowing these niches to be built into their platform, thereby creating a sort of operating system for social networks – wise move which has proven to be highly successful.
Although I agree with earlier posters here that, looking at their initial branding and positioning, Facebook has that “fun” image, especially outside the US, and it will take a while until that changes. LinkedIn has always had that professional touch but I see their closedness and very limited interaction possibilities as a hindrance. In my opinion, Xing is the better LinkedIn by following a more open interaction strategy.
The growth of niche social networks will continue and they can be obviously well sustainable in case they are attractive to a large enough potential user segment. These niche sites will use the API’s of Facebook and soon also LinkedIn as an additional way to drive traffic and promote their brand.
Interesting to see this now after seeing a post earlier in the Blogosphere entitled: “LinkedIn – What’s the big deal?” The author joined for the first time and couldn’t figure out the appeal:
http://www.tech...s-the-big-deal/
Apples and Oranges (for now).
I believe that LinkedIn is more focused for the business network and have delivered to their users a wonderful place to network. In addition, I believe that some execs would rather use LinkedIn in order to be a little harder (only a little) than on Facebook. Furthermore, the answers platform on LinkedIn is very focused and is directed to the correct categories. This has previously allowed me to receive answers which are relevant to the question, from business execs who’s opinion is important.
Eran
Facebook is worthless for those wanting to present a serious business appearance and networking with the business world. Two totally different niches. Will you be comparing Facebook to the Webkinz network next?
LinkedinIn’s making progress.
I wrote my thoughts on their Web Strategy a few weeks ago, and they’ve already started to make progress.
I have a feeling they will adapt
http://www.web-...s-web-strategy/
I agree with Chandra, it’s a good way to track contacts. BUT … it’s not helped me grow my consulting business.
It will be interesting to see what 3rd party apps can do.
I sure hope that LinkedIn sticks around. I am a small business owner and I use LinkedIn a great deal for keeping in touch with contacts and tracking down names at companies I want to call.
I love facebook as well, but I use it to scope out chicks, post silly videos of my buddies and stay in touch with primary school friends.
I also enjoy myspace for looking up new music artists.
I can’t say that facebook won’t overtake linkedin, but i’m in the apples and oranges camp. They both have very different use cases. At least for me.
Both are useful sites. I don’t want to be involved with any company that uses Facebook for business networking. The only thing you should do with Facebook is to check future recruits to make sure they aren’t psychos or closet alcoholics from State School X.
I haven’t seen a mass migration of my LinkedIn contacts to Facebook but I am getting more and more contacts from my previous companies asking to connect with me on LinkedIn, not Facebook. Might be my age, I am 40+, so I think that the 18-35 crowd might have a huge presence at Facebook, by and large, LinkedIn is known for professional contact and Facebook is not. Sure they can add that feature to their site but they won’t be as well known for it. Think about it, does adding videos to MySpace put Youtube out of business? Hardly.
Isn’t it conceivable that 2 social networks with completely different purposes can co-exit? Despite the droves of adults and professionals now crowding onto Facebook, the site remains largely a friendship-based network, offering none of the tools for meeting new useful contacts that LinkedIn does.
As a heavy user of both, I think I speak for a lot of professionals when I say that Facebook is for later-stage relationships whereas LinkedIn is more of a dating site for job seekers, human resources and biz dev — you go to check somebody out, maybe broker an introduction but not to build on your relationship.
Facebook could make a play into the professional networking space, but it would be a bold move. LinkedIn has a strong, established network and a product tailored to the mores of professional decorum. If Facebook made a play, I suspect they would be trying to evolve professional networking more so than their product.
Assuming the trend continues and professionals and others elect to join more specially-targeted social networks, then the question becomes how to organize all that activity on disparate networks. In that case, an aggregator like Slipstream is a good bet.
While I’m listed on LinkedIn, you’ll never see me on Facebook. I will stick on a business-focused social web site. You won’t see me on Facebook, Orkut or MySpace, LOL…
Is it enough for what? Seems better a better question would focus on revenue and revenue growth not number of users. Just throwing out numbers, if linkedin can make $100 from one user, they are better of than facebook which might only make $1 per user. LinkedIn users are buying high end sports cars, Facebook users are paying of student loans. Who would you rather sell to.
Posts like these clearly show that TechCrunch writers run in different circles than the rest of the “business” world. Facebook is not a mainstream business platform today. Period. End of story.
It may evolve into one, but few business folks would consider asking people to connect via Facebook. Even those who frequent TechCrunch, which one can assume are a more “connected” audience, aren’t buying the facebook is a business social networking site. Ask the 95% of folks who aren’t nearly as up-to-date as the TechCrunch crowd, and most will think Facebook=Myspace.
Duncan, it seems you have to realize that your perspective and anecdotal Facebook evidence is just that- yours. Not the mainstream.
I admire Facebook’s strategy and growth, it just isn’t a business networking site. LinkedIn leaves a lot to be desired, but one clear advantage is that it lacks the stigma of a “teen” networking site. That’s still a huge competitive advantage at this stage of the game.
Bottom Line – My Linkedin profile says now “Left for Facebook!” http://flatplan...ordpress/?p=263
I have been one of the early users of LinkedIn and in the top fifty over 8000 contacts, without publishing my email like many do.
Unfortunetly, LinkedIn was/is a spamming heaven for recruiters and that’s a very serious problem as I get so many unsolisited invites. What’s the value add to connect to spamming recruiters.
I’ll continue to use LinkedIn. It’s simply another tool. But Facebook is the place to be for social networking.
Go facebook.
Facebook and Linkedin will never try to compete with each other to bring either one down. Why would they since both companies have the same investor. It makes sense for them to make both of them successfully distinct.
Duncan,
I’m certain there are a fair number of people who WANT to keep their business networking separate from their social networking. Do we want customers, suppliers, outsourcing partners etc. to see the personal information we share with our personal friends on facebook? The hell no.
People will always have a private and a professional persona (at least the smart people will – we all know what happens to the careers of folks who got too drunk at the last company outing, customer dinner, etc.).
What’s the best way to keep sure that the two aren’t mixed? Separate the respective online profiles as far from each other as possible – easiest by maintaining them on two completely different sites. Even if Facebook comes up with 5 million tools to enable that separation on their site, the vast majority of folks (including myself) will not trust themselves enough to use these tools correctly at all instances, so the safe alternative to keeping the two profiles separate is still the same: different sites.
Is LinkedIn the site to keep professional profiles? They got a good lead in the US. In Europe, Xing has been very sucessful and is already public.
IMHO, there is a space and a use for both professional and social networking sites. The two, however, are unlikely to ever merge or mix.
I see companies such as Plaxo getting crushed in this situation.
I don’t know about everyone else, but I don’t like disclosing my industry connections nor want to make new ones via the net. It’s like how Facebook began and you tried to befriend a lot of people to your profile, but it never meant you would ever end up talking to the person. The same goes for LinkedIn. I have a friend on LinkdIn who is the second most well connected person in southern california, but who cares! Also, I really dont care what they end up doing with Applications. What kind of application, a virtual rolodex of people I don’t know well enough to call or get some imporant information? Give me a break, build your career the real way and get started by deleting the false hopes that you might hit it big with Linked In.
Jason
1daysports.com