LinkedIn up 17%, search and news revenue up 11%

It beat analysts’ expectations, with LinkedIn revenue up 17% and search and news advertising revenue up 16%. LinkedIn’s growth has been driven by its strength in talent solutions. According to Microsoft CEO Satya Nadella, there are now more than 150 million subscriptions to newsletters on LinkedIn.

Gain an advantage. The search and advertising surge was “driven by higher search volume and Xandr.” According to Nadella, Microsoft has “expanded the regions we serve nearly four-fold in the past year.” Microsoft Edge may also help with Bing search and advertising revenue. “Edge is the fastest growing browser on Windows and continues to gain market share as people use built-in coupon and price comparison features to save money,” Nadella says.

LinkedIn Marketing Solution continues to deliver leading innovation and ROI in B2B digital advertising. More broadly, with Microsoft Advertising, we offer a trusted platform for any marketer or advertiser looking to innovate. We’ve expanded the regions we serve nearly fourfold in the past year. We’re seeing record daily usage of Edge, Start, and Bing powered by Windows. Edge is the fastest growing browser on Windows and continues to gain market share as people use built-in coupon price comparison features to save money, Nadella said.

Not so fast – growth. Microsoft CFO Amy Hood told analysts during the earnings call that “reductions in customer ad spend, which also weakened later in the quarter, impacted advertising search and LinkedIn marketing solutions.”

Gaming after the pandemic. Xbox content services declined 3% as Microsoft cites a lack of engagement hours and monetization of first-party content, all offset by Xbox Game Pass growth. It’s possible that after the pandemic, people will move from sitting at home and playing video games to traveling and taking vacations.

total revenue. Microsoft’s total revenue was $50.1 billion, up 11% year over year.

What’s next. Next month, Netflix will begin rolling out its paid ad tier with technology and distribution powered by Microsoft.

Why we care. Advertisers may also have noticed that Google’s earnings weren’t quite up to par. It’s FY23 Q1 for Microsoft and these numbers aren’t as good as we were all hoping, but many of us were probably expecting. For Microsoft, however, some new developments are emerging.

Netflix’s new tier of ads, as well as its acquisition of Activision Blizzard, could breathe new life into the search platform.


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About the author

Nicole Farley is a contributing editor for Search Engine Land and covers everything PPC. In addition to being a Marine Corps veteran, she has an extensive background in digital marketing, an MBA and a love of true crime, podcasts, travel and snacking.

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