LinkedIn Corp. (LNKD) is expected to benefit from the shift of approximately $20 billion in advertisement spending from traditional sources like television into digital platforms, making LNKD one of the top picks in the Internet services sector for Mark Zgutowicz, Vice President & Senior Research Analyst at Piper Jaffray & Co.
“The two most prominent are on both the smartphone and tablet advertising front,” Zgutowicz said. “LinkedIn stands to benefit from increasing penetration and usage of smartphones and tablets — specifically, the shift of eyeballs to viewing devices away from historically primary mediums such as TV.”
Zgutowicz says most of the revenue gathered today for LNKD comes from its Website, LinkedIn.com, and once the company releases its ad monetization platform in the mobile device areas, the global user base can be more effectively targeted.
“We expect a mobile ad platform to be released prior to year end, enabling companies — and particularly, B2B advertisers — to better engage LinkedIn’s 170 million or so global user base who are increasingly using LinkedIn’s smartphone and tablet apps to access content,” Zgutowicz said.
“It’s also important to mention the fact that their solution, or that the software that they provide to access their database, is really a cost save for most enterprise recruiters relative to what they’re paying on some of those other areas that I mentioned,” he said.
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