As we mentioned on our newsletter last week, Facebook has begun testing software that would allow for job postings and applications to be created and received directly on the Facebook pages of companies.
We here at Vuru found this to be incredibly exciting news and wanted to take a deeper dive into the topic and see how this may affect Facebook and another rival in the space…. Linkedin.
Just a quick reminder that Linkedin was acquired for $26.2 billion by Microsoft over the course of the summer. Microsoft already dominates the workplace technology market and saw the merger as a natural fit between the two companies’ product lines.
With the news of Facebook’s plans, Microsoft may not be too happy.
Facebook has a history of entering new markets and completely turning them on their head. They have a history of turning established players with great track records into old, stale and unexciting dinosaurs. Remember 2005 when MySpace was all of the rage? Only a few short years later Facebook dominated the social media market and sent the MySpace advertising revenue to essentially zero.
At that time MySpace had about 75 million monthly active users, according Bloomberg Businessweek, but, since then, Facebook’s well developed site has catapulted it to over 1.65 billion monthly active users. MySpace now sits at a measly 50 million.
The parallels are here for Linkedin, or Microsoft, to be more accurate. Facebook’s history of crushing the competition includes messaging apps, photo sharing sites and mobile advertisement. They have consistently introduced features to their site that have quickly been accepted by their users and continued to integrate themselves into the everyday functions of society.
The next opportunity the Facebook machine sees in its radar is the job recruitment market.
It makes plenty of sense for Facebook. People interact with their favourite brands already on the site through liking content, sharing videos and commenting on stories. Why not let them apply to these companies as well?
Facebook has been growing their revenue through the sale of advertising and paid promotion. The growth has been incredible (pictured below), but the company warned that the sale of ads to its news feed is about to reach a maximum. In order to continue to find revenue growth, they’ll have to find new products to sell. That’s where postings and applications come into the mix. They can charge companies for the number of people who see the application and for each application they receive.
Mark Zuckerberg can already see the dollar signs.
*Facebook Revenue Growth *
So what does this mean for Linkedin?
Linkedin, for those not aware, offers a network service to professionals looking to keep track of the people they know and reach out to people they would be interested in meeting. Some members pay a subscription fee to access more features on the site. The site also offers hiring tools and marketing solutions. It is the go to social media network for professionals in high end technology, finance and business fields.
While this market is slightly different than the market that Facebook would look to tap into with their job posting/application feature, Linkedin should be quite nervous about FB stealing their market share in the long-term - given their history of doing so in the past.
While some jobs will always be facilitated through Linkedin, think investment bankers and consultants, McDonald’s using the site to hire for some of the million jobs they have each year (Fast Food Nation) as cashiers and fry cooks, seems to make a lot of sense.
Facebook has a history of moving quickly and taking no prisoners in every market they enter. Linkedin should be weary. Don’t expect this to be any different and keep an eye on your favourite company’s Facebook page, they just may be looking to hire you.