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Though LinkedIn will pour more money into its platform, don't expect the company to become more Facebook-like in its look and feel, says Yarmis. Critics of LinkedIn have long contended that it would lose out in the social networking wars because its interface is nowhere near as social and engaging as Facebook. In actuality, the fact that LinkedIn isn't as sociable could be the reason its users like it.
Anecdotally, Yarmis says, LinkedIn's older, professional audience appreciates the site's sparse feel. They aren't social media insiders or cheerleaders drunk on the idea of a social revolution as facilitated by Facebook or Twitter (the microblogging service). They merely want to connect with business contacts and utilize its "question and answer" forum to solve their professional challenges. As a result, they likely have little desire to see that environment muddied by applications that offer you fake martinis or to view someone's vacation pictures.
"The fact that Linkedin doesn't let them do all that stuff and that it's very focused is part of the appeal," Yarmis says.
Even if LinkedIn doesn't become more like Facebook, analysts say LinkedIn should use the money to invest in making the platform agile and ready for changes, especially to integrate with other technologies and applications.
"LinkedIn needs to respond faster to the market needs, innovate, and not rest on their laurels of profitability," says Forrester's Owyang. "The economic downturn provides them with a window of opportunity, as long as they stay fast and flexible."
Other stories by C.G. Lynch © 2008 CXO Media Inc.
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