Jun 13, 2016 - Microsoft has announced its pending acquisition of B2B social networking ... platform experience as well
June 2016
MICROSOFT AND LINKEDIN: A SOCIAL/B2B POWERHOUSE Microsoft has announced its pending acquisition of B2B social networking company, LinkedIn, for $26.2 billion in cash. Microsoft’s goals include integrating platforms, driving sales through data exchange and personalizing user experiences. With both companies holding common missions centered around empowering people and organizations, the acquisition will tightly merge Microsoft’s tools with LinkedIn’s career-driven network of companies, employees and job seekers. Synergies include: • Exchange of data between products that will enhance personalized professional opportunities within each platform • Increased sales efficiency for Microsoft utilizing LinkedIn’s massive B2B network and data, ultimately leading to increased engagement and user growth across LinkedIn
MICROSOFT TO ACQUIRE MAJOR B2B SOCIAL NETWORKING COMPANY LINKEDIN FOR $26.2 BILLION
In addition to advancing both the products through data exchange, the announcement has potential to impact competitors such as Salesforce and emerging communication startups like Slack. While LinkedIn already was a head-to-head competitor of Salesforce, the integration of LinkedIn data within Microsoft tools could take the two forces to the next level, creating a social/B2B powerhouse.
IMPACT ON THE USER EXPERIENCE Microsoft’s press release notes the following changes to its user experience: 1. Microsoft will leverage the LinkedIn network reach and user data to drive sales. Through LinkedIn’s massive B2B data and insights, Microsoft will integrate and hyper-target sales of their Microsoft Suite products within the ‘LinkedIn Learning’ hub. 2. LinkedIn’s Newsfeed will integrate Microsoft products to merge trending news with users’ schedules. In an effort to personalize the newsfeed, Microsoft products like Outlook, will be integrated into the LinkedIn newsfeed. This will surface business news relevant to users’ current or desired field and show the potential effects on meetings or events in their schedules. 3. Microsoft Suite will tightly integrate with the LinkedIn Learning hub to personalize training courses. The product integration will merge LinkedIn and Microsoft Suite user data to surface relevant courses, powered by Microsoft, to users based on their position, field and behavior across each tool.
~June 13th 2016
WHAT THIS MEANS FOR MARKETERS Microsoft plans to keep LinkedIn’s platform intact, noting minimal changes to the overall platform experience as well as its advertising inventory. The power of this merger however will come from the enhancements in user experience, which has the ability to catapult the social network’s user base and overall engagement. The integration of each platform’s tools creates a ‘predictive’ and highly personalized learning experience that surfaces the right information at the right time to the right audience -- leading to increased interest to leverage as a distribution tool by marketers and brands. The acquisition will not close until the end of 2016, so the changes to the platform will not be immediate. Marketers should keep track of LinkedIn usage and engagement numbers even though it is currently unclear what impacts (if any) this acquisition will have on targeting and/or advertising opportunities. We can assume with Microsoft’s technological background that, if the acquisition proves successful, advancements in advertising placements will be woven into their product roadmap. Currently, though, it appears that the focus lies in the integration of Microsoft tools with LinkedIn’s platform. We recommend that brands monitor these changes and updates to gauge if advertising opportunities advance and then evaluate if the advancements can help achieve specific brand goals.
RECOMMENDED READS Why Microsoft Could Challenge Salesforce for CRM Market Share After Buying LinkedIn (Adweek) Microsoft To Buy LinkedIn for $26.2B In Cash, Makes Big Move Into Enterprise Social Media (TechCrunch)
CONTACT: Noah Mallin, Head of Social Tel: +1 (212) 474-0618
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