Another quarter goes by, and LinkedIn’s advertising business—on both the sales and marketing side—continues to impress. I just don’t have anything bad to say about it. (Which is unusual for me).In Q1 2012, LinkedIn took in $188 million in revenues, of which all but $38 million was help wanted ads or marketing/display advertising of some kind. The company spent only $66 million on its sales and marketing staff to make that money.
That’s why LinkedIn is so profitable when companies like Groupon and Pandora are not: It is an incredibly efficient ad-selling machine in which ever dollar spent on sales and marketing salaries generates $2.28 cents in ad revenue for the company.
LinkedIn's growth may be slowing a little, but it's still piling on the revenues 12% per quarter and 12% year-by-year.
Here's the breakdown of LinkedIn's ad revenues. 'Hiring solutions' and 'Marketing solutions' dominate LinkedIn's sales.
The result: Growth in its ad business is greater than the company's operating costs, which is why LinkedIn showed a $5 million profit in Q1.
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