LinkedIn's Massive Opportunity In The Social Recruiting Market

LinkedIn’s revenue from Talent Solutions is growing at a faster rate than Premium Subscriptions and Marketing Solutions, according to quarterly earnings.

Talent Solutions — which are hiring tools that LinkedIn sells to recruiters — accounted for 48% (or $US58.6 million) of the company’s total revenue in the second quarter of 2011. In the second quarter of 2013, Talent Solutions brought in 56% (or $US205.1 million) of total revenue.

For comparison, Marketing Solutions — which includes ad space sold by LinkedIn — accounted for 32% (or $US38.6 million) of total revenue two years ago, but just 23.5% (or $US85.6 million) today.

Meanwhile, Facebook just reported its best quarter yet in terms of ad revenue.

LinkedIn stated in one of its investor presentations that the addressable market size for worldwide talent acquisition and staffing services is $US27 billion. Keep in mind, this number includes revenues from recruitment agencies, but if LinkedIn’s Talent Solutions become ubiquitous in that industry, it gives you a sense of the demand for social media-based recruiting tools.

Revenue generated from Premium Subscriptions has grown steadily, but has not fluctuated from its 20% stake in total revenue.

Download the chart and data in Excel.

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