In our latest study, Social Media in The City, we found that only 20% of the FTSE 100 are actively engaging on the professional social network LinkedIn. The rest, we conclude, are missing out on opportunities to drive word of mouth by engaging its members, who now number over 187 million.
- 96% of the FTSE 100 companies have a corporate presence on LinkedIn with a combined 2.6 million followers and 978,000 employee accounts
- Yet only 20% appear to be actively engaging via their LinkedIn Company Pages by posting status updates on at least a monthly basis
- As a result, just 12% are seeing regular engagement with their company pages from LinkedIn members, in the form of like or comments on their status updates over a one-week period
- We also found that 87.5% of those listing products or services received endorsement and recommendations, and all those who posted status updates in the 30 days to 8 November 2012 saw some form of engagement by LinkedIn members
The research, published this month, found that while almost all the FTSE 100 have a corporate presence on LinkedIn, few actively manage it. Less than a quarter of FTSE 100 companies list any of their products and services on their company pages and a mere 13% posted a status update in the 7-day study period. As a result just 12% saw regular engagement by users of the largely business-focussed social network.
However, those companies that do take the time to list products and services and post status updates see high levels of engagement in return. The study shows that the vast majority (87.5%) of those listing products or services received endorsements and recommendations, and all those who posted status updates in the 30 days prior to the study received at least one ‘like’ or comment.
LinkedIn company pages can be created manually by companies but are often created automatically by LinkedIn based on employee accounts. They allow members to stay up to date on company news, products and services, business opportunities and job openings.
In a news release issued today, Josh Graff, director of LinkedIn Marketing Solutions EMEA, said: “With four out of five British professionals on LinkedIn, a Company Page gives businesses a social media presence that counts. Whilst most UK businesses have a company page, as this research highlights, many are not yet making the most of it. I’d encourage them to log on, add their products and services and start actively engaging.”
The FTSE 100 companies – who together attract a combined 2.6 million followers of their LinkedIn company pages – are represented by 978,000 employee accounts on the professional social network.
A new LinkedIn performance metric
To undertake this analysis, we developed a unique performance algorithm for LinkedIn, which measures company pages on three attributes: popularity, activity and engagement. When applied to the FTSE 100, it found that Royal Dutch Shell led the overall ranking and received the highest levels of engagement, although Unilever was the most popular company and Experian was the most active.
With LinkedIn being a business-oriented social network that many companies seem to hold in such high regard, it is extraordinary that so few of the FTSE 100 are using it well. In our view, this lack of engagement represents a lost opportunity and a competitive disadvantage.