Since LinkedIn knows the professional histories of its users, and can target sales execs, c-level managers, or certain industries, we can imagine high ad rates for advertisers looking for a business niche. Still, we have a hard time believing this is an average CPM for LInkedIn. But we don’t have a hard time believing that LinkedIn’s average CPM crushes that of Facebook, MySpace and other social networks who routinely struggle to get CPMS above a buck.
Facebook (70 million) and MySpace (200 million) have an enormous scale advantage over LinkedIn (21 million); Facebook in particular is encroaching on its user base. But if LinkedIn can profitably establish its niche of working professionals, which advertisers covet, they have a franchise.