In recent years, there has been much debate over whether LinkedIn, the professional social networking platform that launched in 2003, has become obsolete in an age of newer professional networking tools and declining user engagement on the site. While LinkedIn was undoubtedly revolutionary when it first arrived on the scene, providing professionals with an unprecedented ability to connect with colleagues and new opportunities online, some argue its heyday has passed. So is LinkedIn truly obsolete in 2023, or does the platform still have value to offer working professionals? Let’s examine some key points on both sides of this debate.
The Case for LinkedIn Being Obsolete
There are several factors that point toward LinkedIn losing relevance in the modern professional networking landscape:
Declining User Engagement
LinkedIn usage and member growth have stalled in recent years. After reaching 740 million members in 2021, LinkedIn has struggled to meaningfully expand its user base, with only 15 million new members joining in 2022. Engagement has also dropped, with the average number of days Active LinkedIn users spend on the platform declining 6% year-over-year as of October 2022 according to Cowen research. This declining engagement suggests professionals are finding less value in the platform.
The Rise Of Newer Professional Networks
As LinkedIn engagement has stagnated, new professional networking platforms have arrived on the scene to challenge its dominance. Most prominent among these is Clubhouse, an audio-based platform valued at $4 billion that has attracted over 10 million users with its unique ability to host live audio networking events. But Clubhouse is far from the only competitor – platforms like Fishbowl, Mmhmm, and others have also emerged to facilitate new forms of professional connection. These new players are innovating in ways LinkedIn has failed to, from audio networking to anonymity.
Criticism Around Lack Of Moderation
LinkedIn has faced growing criticism in recent years over its hands-off approach to content moderation. The platform is increasingly home to misinformation, spam, and self-promotional content that undermine its goal of facilitating constructive professional dialog. Unlike sites like Facebook or Twitter which have implemented stronger content filtering policies, LinkedIn has taken a largely laissez-faire attitude, arguing filtering goes against its ethos of open professional communication. But many now see this lack of oversight as detrimental to the user experience.
concerntration of SEO and self-promotionary content
With LinkedIn’s open content policies, some argue the platform has become oversaturated with SEO and self-promotional content that drowns out meaningful discussion. The algorithmically generated content pollutes many users’ feeds, damaging the ability to connect authentically.
The Case For LinkedIn Still Being Valuable
However, there are also several signs that reports of LinkedIn’s demise may be premature:
Still the Largest Professional Network By Far
While growth has slowed, LinkedIn remains far and away the largest professional networking platform, with over 755 million members as of September 2023. This sheer scale still makes LinkedIn an unparalleled resource for connecting with professionals across virtually every industry and region. Competitors have not come close to matching this size, limiting their ability to deliver the same reach.
Unique Data Makes LinkedIn Valuable For Recruiting
LinkedIn provides data and insights around users’ professional profiles, experience, and interests that other networks do not match. This makes LinkedIn a uniquely valuable platform for recruiters and hiring managers looking to identify and vet potential candidates. 85% of recruiters in one survey said they still use LinkedIn as a key hiring resource, underscoring the enduring value of its professional data.
| Year | Number of Recruiters Using LinkedIn for Hiring |
|---|---|
| 2018 | 63% |
| 2019 | 71% |
| 2020 | 81% |
| 2021 | 85% |
The Platform Still Generates Billions In Revenue
While user growth and activity have flattened, LinkedIn’s revenue has continued growing at a strong pace. The platform generated revenues of $10.3 billion in 2021, up 46% from the previous year. LinkedIn also maintains positive 24% net profit margins, with revenue highly concentrated in premium subscriptions and recruiting services. This strong financial performance belies the notion that LinkedIn’s value proposition has disappeared.
Network Effects Make Users Reluctant To Leave
LinkedIn benefits strongly from network effects – users attract more users, making the platform more valuable. Because so many professionals maintain LinkedIn profiles, members are reluctant to abandon their networks and data on the site to switch to smaller competitors. This built-in competitive advantage makes it unlikely LinkedIn will suffer a mass exodus anytime soon.
The Future Of LinkedIn
Given the points on both sides of this debate, the truth likely lies somewhere in the middle. Here are some reasonable predictions for LinkedIn’s trajectory going forward:
- Declining engagement and stagnant user growth will force LinkedIn to innovate its core value proposition and product offering, rather than relying on its scale alone.
- Competitors will continue chipping away at the edges, attracting certain segments of users not having their needs fully met by LinkedIn.
- However, LinkedIn’s massive user base and unparalleled professional data ensure it will remain a valuable platform, especially for recruiting, for years to come.
- Revenue growth will slow but opportunities in hiring services and premium subscriptions will sustain LinkedIn’s business model even amid modest user growth.
- To reduce spam and self-promotional content, LinkedIn will be forced to implement stricter content policies and moderation, though unlikely ever to the level of sites like Facebook.
Conclusion
Rather than being totally obsolete, LinkedIn will likely remain an important platform that retains value in specific use cases like recruiting and premium business networking. But the days of LinkedIn experiencing meteoric growth and engaging users for hours each day are likely over. The platform will need to innovate its community experience and offerings to sustain itself as users’ needs evolve. But with its enduring scale and professional data advantages, complete obsolescence seems unlikely in the near future. LinkedIn still provides utility, but no longer elicits the same enthusiasm or engagement as the past. The platform will need to adapt to this new reality to remain relevant in the long-term.