Linkedin: Building the digital highway

From being a repository of resumes, Linkedin moves to become the one and only stop for all professional needs

In April 2015, Linkedin acquired lynda.com for $1.5 billion. Apart from the many jokes that the deal spawned on Whatsapp and Facebook, it caused quite a flutter in the ever-expanding world of social media. Why should a professional networking portal buy an online learning company?

In the words of Nishant K Rao, country manager India, "The lynda acquisition has been a turning point for us. From online networking, jobs to content, we are moving into online learning, which is a new chapter for the Linkedin brand."

The lynda.com transaction is a combination of approximately 52 per cent cash and 48 per cent stock and comes close on the heels of a host of other acquisitions - Newsle, Pulse, Careerify and SlideShare. Connect the dots between the deals and the game plan is even clearer.

The aim, clearly, is to build a web of associations that keeps its user base happy and loyal. With a 360 million plus community in place globally, the company is now stitching up a basket of facilities, tools and development platforms that will help professionals, job seekers and recruiters find everything they need in one place.

With 30 million users (May 2015), India is the second largest market outside the US as well as the fastest growing one. Naturally then the company wants to be as much an Indian brand as it is a global one. With a 600 plus employee-base driving growth in the country, Rao says that they are continuously adding content to make the platform's experience richer. It has also set up a differentiated pricing model for many of its offerings such as Talent Solutions, a mass hiring facility and Linkedin Recruiter, that allows Indian recruiters to search and target profiles. This move, a global first for Linkedin, "may be extended to the other countries such as China and Brazil as well. The idea is to have a local flavour," Rao explains.

Linkedin also wants to be seen as a brand that is attuned to its users' needs. Hence it offers tools that help recruiters manage all their talent leads in one place. It also offers them the facility of building their brand among employees and seeking special skill sets. In India, Linkedin Hiring Solutions are used by a number of companies including ING Vysya, Genpact, Biocon, Wal-Mart, HCL Technologies and L&T Infotech. With three million companies on Linkedin promoting their brand and seeking suitable candidates, Rao says that the job has only begun.

For a bigger share of the Rs 10,000 crore recruitment industry in India which has numerous players (naukri, monster among others) what must it do to be more relevant? The first hurdle has already been crossed for as Rao says that they are no longer only recognised as a 'job portal'. "The audience we cater to is very different from what a typical job-site caters to. Some come to us for purely accessing content, some to network with peers in the industry, while others may come in looking for career opportunities. Here, a one-size-fits-all approach will never work and hence you will never see advertising in television or big bill-boards on the street," he adds.

He believes that Linkedin has successfully rebranded itself. "If you asked any lay person about Linkedin about 4-5 years ago, they would look at it as a job portal. That mindset has completely changed. Today, we are equally known for our professional content as for the career opportunities that we provide via the platform," he says. The new acquisitions will help steer forward in the same direction.

Does the company want to increase its premium subscribers? While the premium site has seen traction, Rao says that that is not a segment they wish to push. According to him, sustainable growth will lead to a growth in size at the same time leaving customer experience intact. The proportion of premium subscriptions is estimated at 19 per cent of its overall revenue. LinkedIn revenue in 2014 was $2,219 million, an increase of 45 per cent over 2013.

What it does want to do is sharpen its messaging. Be it via the mobile applications or direct messages online, which according to Rao, are the best way to target the concerned user or segment. Their initiative with MTV introduced this year to get individuals get to the 'coolest' summer jobs saw an overwhelming response with almost 100,000 applications between April and July 2015. With almost 50 per cent of global traffic coming from mobile, that is another area the portal is focusing on.

The company also wants to be viewed as a communication platform. It has opened up its long-form content publishing platform and several India-based leaders have joined the platform as 'Influencers'.

The list includes Prime Minister Narendra Modi, Biocon's Kiran Mazumdar-Shaw, Piramal Enterprises Vice Chairman Swati Piramal, Ronnie Screwvala and Nandan Nilkeni. Rao says that they have seen a 7X growth in publishing, with almost 1,00,000 pieces of long-form content available on the platform. For a social media networking portal, that is a game changer.