LinkedIn Corp (NYSE:LNKD)’s Blue says direct online marketing will vanish into the blue

Posted by Lynn Eisler July 22, 2013 0 Comment 1922 views

LinkedIn Corp (NYSE:LNKD) will now be streaming some data through to Adobe’s marketing cloud, Adobe Social. Foursquare, Flicker and Instagram are the other networks that are being tapped. This means that LinkedIn as well as these other networks will now be accessible to digital marketers via Adobe Social. These networks can now be monitored and marketers will have access to conversations.

This functionality can be used to identify consumer behavior and trends in real time. Currently, integration of LNKD’s data is in limited beta. General availability is scheduled to be added at some point later in 2013.

Data linked marketing

Data brokers and companies are adopting a very sophisticated approach with gathering as well as using personal data for various marketing purposes. Allen Blue, LNKD’s co-founder predicts that though this trend is gaining a lot of steam today, it is not one that is here to stay. The direct marketing techniques that target messages based on the profile or conversations of a person will slowly lose their effectiveness and disappear altogether at some point. He believes that advertising is not always accurate.

The marketing nuisance

There is more than a fragment of truth in what Blue is saying. Anyone who accesses online sites and uses email or any networking sites will know that even using a particular word in the body of the mail or a conversation will bring in a flood of advertisements. These ads may or may not be relevant to you. For instance, just because I am having a conversation with someone via LinkedIn about Liposuction is not an indication that I am a candidate for the procedure.

Misplaced marketing

Erroneous marketing is not something new and almost everyone gets targeted by it at one point or the other. Blue predicts that there will be a fundamental shift in advertising and customers will have a definite say in the kind of messages that they see. The Direct Marketing Association industry-trade group is in disagreement with Blue’s view and they are throwing statistics to prove their point. In their opinion, $168.5B is spent on direct marketing and in 2012, this produced over 2 trillion dollars just in incremental sales. Broadly, that amounts to almost 9% of America’s GDP.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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