LinkedIn's growing success is both admired and feared by many in the content business, but the rap against them for quite some time has been, "Well, yeah, but where's the monetization?" In truth LinkedIn has been growing revenues steadily through traditional brand ads, partnerships and payments for premium services. But with two key moves LinkedIn is raising the bar on its prospects for revenues - and for a potential exit at a more appreciable price.

The fist LinkedIn initative is its new DirectAds service, which enables LinkedIn members with profiles to produce simple text ads on a self-service basis that can appear in other members' profile pages. Similar in overall concept to Facebook's SocialAds program - a link to the advertiser's profile appears in each ad to ensure that marketing is on a conversational basis with a known entitiy - DirectAds has the added benefit of being able to target executive peers in the LinkedIn network with a great deal of granularity - and charges healthy but affordable minimum rates to do so - a $25 minimum for a flight of ads, with impressions based on a variable formula. Filtering options include many of the criteria found in a typical member's profile, including the ability to limit ads to specific geographic regions.

The potential for DirectAds is very strong within LinkedIn itself, but it also has the potential to provide B2B publishers with some real concerns as this evolves. Though there is no announced plan to take DirectAds off-site into other publishing venues, certainly classifieds in B2B journals and Web sites could be easily targeted by LinkedIn with its extensive network of top-shelf executives and salespeople. More importantly, it's not too hard to imagine that a B2B publisher seeking revenues from companies trying to get a message through to very specific executives would jump at the chance to use DirectAds to get rates far higher than classifieds for its very targeted profiling capbilities. In very tightly knit B2B communities DirectAds would play very well in B2B publishing venues. Technologically, it would not be hard to implement at all - it would only take enabling a B2B publishing site with Google's OpenSocial API. With such a combination DirectAds would have a Google AdWords/AdSense revenue combo for on-site/off-site revenues that could be impressive indeed. If done properly - hopefully avoiding Facebook's pratfall with its Beacon program that released private data in a user-unfriendly manner - this has the potential to be to B2B publishing what Google was to consumer publishing, turning advertising into relationship building with one click of the mouse. With its potential for ultra-precise targeting, it could put somewhat of a dent in marketing lists services as well in time.

The other interesting new program at LinkedIn is the LinkedIn Research Network, which leverages some of the concepts that it employed in LinkedIn Answers to provide a tool that can enable executives to conduct peer-to-peer industry research. As in LinkedIn Answers members of LinkedIn can pose questions to peers in the LinkedIn network, using LinkedIn's extensive structured and unstructured member profile data to zero in on just the right people to target for questions. The Research Network provides its users with a workbench to monitor responses to questions and to in effect build research panel who can be contacted for additional questions.

The revenue hook in Linked in Research Network is its use of LinkedIn's private InMail network to contact members. Members may use InMail for contacting up to 20 people at a time, presumably to cut down on "spam" research requests and presumably to make it easier to meter the pricing to a reasonable block of minimum requests. Of course, one can sign up for InMail at any number of premium levels, so the real hook is to promote InMail premium subscription revenues as much as possible. Given that the demo video was intent on saying that this product was targeted primarily at financial industry analysts trying to contact experts in companies and market sectors, perhaps their initial expectations for its use are limited. But clearly its ability to combine the art of research into the art of marketing will make this a popular option for many over time.

With both of these options LinkedIn is taking a relatively low-key approach to product development, moving relatively slowly to ensure that their most valuable asset - the trust and security that the LinkedIn system of opt-in relationships has protected through its development - will not be tainted or abused. Executives are a conservative bunch when it comes to dealing with their personal reputations, but LinkedIn has proved to more than 20 million professionals so far that it is by and large a very trustworthy environment. With that trust as a primary asset, it's likely that LinkedIn has set the stage for some solid revenue development that is likely to upend a few B2B applecarts in the long run. For the time being, though LinkedIn is just at the begininning of what promises to be a long battle for the rights to what professionals value most in carrying out their business - trusted relationships that can yield revenues.

Labels: advertising, financial information, LinkedIn, Monetization, Research

TechCrunch picked up over the Thanksgiving holiday on a rumor that Rupert Murdoch is pursuing the acquisition of the LinkedIn social network, a rumor later denied by News Corporation in The Telegraph but which has more than a grain of strategic sense in it nevertheless. [UPDATE: VentureBeat provides comfirmation with details that parallel our original post.] With Fox Interactive Media head Peter Levinsohn confessing in a Reuters interview that he finds Facebook "substantially more entertaining" than their own MySpace, there's an acknowledgement that MySpace is more about traditional media in many ways than it is about the multi-dimensional networking that Facebook enables for adults in professional and personal roles. While MySpace's upcoming personal feeds will no doubt give MySpace a little more boost against the rapidly growing strength of Facebook it's clear that Murdoch has many fish to fry when it comes to attracting adults who are at the core of many of his holdings' revenue streams.

A LinkedIn acquisition would help News Corp to fill in not only dwindling business-oriented classifieds revenues as more jobs and services are posted and found on social media networks but as well give them a well-established network of professionals that could become the focal point of hard-core business information services that bridge media and enterprise markets. It's not likely that Murdoch's Dow Jones division will come up with a social network on its own to compete with financial communities on Bloomberg and Reuters networks, but with LinkedIn they would have the ability to have a key tool to help professionals network and execute enterprise business well beyond investment bank trading floors. That's likely to bolster revenues as Factiva database subscription revenues face tough times in a softening economy.

To some degree this might also help to solve some of the question marks as to how best to leverage the highly valuable network of Wall Street Journal subscribers, many of whom no doubt are LinkedIn members as well. What better way to give this elite business publication a powerful business social network than to equip it with the most popular business networking tool available to date? It's doubtful that the WSJ crowd would ever take MySpace seriously as a social networking environment, no matter how much News Corp tries to re-engineer it, so why waste time building one from scratch as potential rivals gear up their own efforts for business-oriented social networking? All of a sudden the idea of premium content takes on a whole new meaning in this context that can transform the WSJ community into an elite social networking community. In the meantime LinkedIn infrastructure can be repurposed to give MySpace some more adult angles as well for younger people who are looking for a Facebook alternative.

There are realistic options for LinkedIn other than News Corp, but few that would be able to leverage all of LinkedIn's value to its maximum potential. It's a logical and potentially powerful marriage of social media via an organization that understands both media and enterprise content value fluently. Murdoch is one of the few old-line publishers who really understands that the value in publishing is already way beyond the inventory that any one newsroom can create. In an era in which user-defined context is king, consider LinkedIn a key acquisition plum that's likely to be pulled out by a major player like NewsCorp sooner rather than later.

Labels: Deals Partnerships and Sales, Dow Jones, LinkedIn, News Corp

CNET interviews Jaideep Singh, the CEO and Co-Founder of the newly launched personal profile search engine Spock, and reveals insights into what is perhaps the hottest online content product launch this year. The Spock team has already assembled about 100 million tagged personal profiles of both living and historical people, including high profile people from the past like Diana, Princess of Wales and somewhat more mundane people from today like, well, me. Spock has carved out a very clever niche for itself, providing bone-simple search and navigation features like Google, personal profiling and networking as found in social media services such as LinkedIn and Facebook, content tagging, bookmarking and voting features like Digg and del.icio.us and content embedding features like PhotoBucket that enable a Spock profile to appear on Web pages beyond Spock.

There are all too many instances of features checklists like the above that could result in tragically bad content services but that's not the case with Spock. Through its system of content tagging and linking Spock winds up being a very powerful tool to research people who might have something to say on a given topic or to find out people who may have a connection to someone who you need to research. For example if you try a Spock search on "global warming" you get to no one's surprise a Spock profile of Al Gore as your first entry, but it's followed closely by Bill Clinton's profile (listed as "global warming advocate" [sic] as well as having a relationship link to Al Gore) and then by profiles of numerous global warming skeptics, including Rush Limbaugh. These are interesting and highly relevant search results that Google, as good as it may be from its own perspective, simply cannot duplicate.

Anyone can tag a person's profile returned on Spock with additional keywords that may be relevant to the person or add a vote for an existing tag. This is an exciting combination of content categorization and user feedback that provides the ability to create more relevance for a given person's relationship to a tagged topic without having to rely on evaluating external content sources. However Spock does quite a bit of external content evaluation as well, using patented algorithms to determine relevance, personal links and profile information. This information may be verified and edited by a person logging in to the Spock service and claiming their profile, much as in the Zoominfo online directory of professionals. In building a profile one can add links to existing personal profiles on social media services or links to relevant Web pages. Others may add links to your profile as well and vote on them, so there is a social media aspect to profile building also.

There's very little redundant information in Spock, it's mostly links to relevant information found elsewhere, as with other search engines. But the social media features, profile links, user tagging, bookmarking and personal profile validation features combine with straight search capabilities to create a truly unique experience with very useful information. Given that people have been "Googling" people for a long time you'd think that a major search engine like Google would have come up with Spock-like features to add value to personal searching, but Spock found that need and has filled it very nicely. While it may lack some of the strong business oriented capabilities of finding professionals via services such as LinkedIn, Jigsaw or Zoominfo the Spock method seems to try to be a Switzerland of sorts for social media profiles: have as many as you want wherever you want them and Spock will use them as useful input for building yourself an all-encompassing profile and content directory on their own service.

The mixture of both solid results and fun exploration is sure to make Spock a very popular and useful service for people in both personal and professional roles, a factor that is likely to encourage people to build and maintain a high profile via Spock's search services. Spock helps to fill in the area between purely automated searches that fail to incorporate personal wisdom on both people an topics and does so in novel ways that challenge both conventional search engines and more traditional directory services to consider how people can be exposed most effectively to audiences searching for both information about people and both personal and professional relationships with people. It's still early days for Spock, of course - performance is so-so at times and there are still some bugs to be found in basic features such as profile claiming - but as a tool to probe into people within the framework of key topics expect Spock to become a trend-setter for some time to come.

Labels: facebook, LinkedIn, search, Social Media, Spock, Trends