LOCAL IZAT ION OF L INKEDIN ’S INS IGHTS

# L i n k e d I n D a y R i y a d h # F e b r u a r y 2 0 1 4

THIS PRESENTATION WAS PREPARED TO BE PRESENTED AT THE LINKEDIN DAY RIYADH – FEBRUARY 2014

P R E S E N T E D B Y : M O H A M M E D A L M O D H A Y A N

WHICH OF THREE SEEMS TO BE INVESTING MORE ON

TALENT?

Rank the three companies and write down your answer on a small piece of paper. You’ll need your answers later

HOW WOULD YOU RANK THE THREE BANKS IN TERMS OF

QUALITY OF SERVICE?

Again, rank the three companies and write down your answer on a small piece of paper. You’ll need your answers later

INDUSTRY CATEGORIES IN LINKEDIN

World USA India Brazil Australia Germany Saudi Arabia Japan

LinkedIn categorizes companies into 17 industries. Very useful categorization system when comparing a country with the rest of the world.

TOP 5 INDUSTRIES IN SAUDI ARABIA

MANUFACTURING

CONSUMER GOODS

CORPORATE

HIGH TECH

CONSTRUCTION

However, when looking at breakdown of one country’s companies in using LinkedIn’s categorization, findings won’t necessary will be a fair representation of a country’s economic landscape.For instance, Saudi Arabia and Japan share 4 out of top 5 industries.Hence, localization of LinkedIn’s data is required.

THE SAUDIZATION (LOCALIZATION/REGIONALIZATION) OF

LINKEDIN’S INSIGHTSFurther processing of LinkedIn’s data is surely needed to localizeHence, TMD added additional local data layers from local financial information sources such as Tadawul, Argaam, Gulf Base and Derayah.TMD was able to restructure LinkedIn country insights to better match Saudi Arabia’s economic landscape.

CALCULATING LINKEDIN PENETRATION IN A COMPANY

To localize LinkedIn’s insights, you will need to calculate LinkedIn’s penetration in a company.

In fact, you will need to calculate it for all company’s that are publically listed in your local secondary markets.

Keep in mind, doing so will keep certain privately owned blue chips or government owned blue chips out of your insights. You are free to add them.

Note: In our attempt to localize Saudi Arabia’s insights, we intentionally did not include privately/Government owned companies like Aramco, Saudi Airlines, NCB, Olayan Group, etc.

Calculation is explained in the next 3 pages…

CALCULATING LINKEDIN PENETRATION IN A COMPANY

30,000 Employees in SABIC(as per SABIC’s 2012 financial statements submission)

Step 1: Get the total number of employees of a publically listed company by visiting the company’s profile in any local/regional financial portal.

CALCULATING LINKEDIN PENETRATION IN A COMPANY

16,613 members in LinkedIn that currently work at SABIC (February 2014)

Step 2: Get the total number of LinkedIn members that work at the publically listed company by visiting the company’s LinkedIn page

CALCULATING LINKEDIN PENETRATION IN A COMPANY

30,000SABIC

Employees

16,613LinkedIn memberscurrently working

at SABIC

/ = 55%

55% of SABIC’s employees can be found on LinkedIn

LINKEDIN PENETRATION ACROSS TADAWUL SECTORS

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

After calculating LinkedIn penetration of each publically listed Saudi company,we were able to sum up company penetrations into sector penetrations.And this is the final ranking of Tadawul’ssectors on LinkedIn.

LINKEDIN PENETRATION ACROSS THE THREE TELECOM

COMPANIES MENTIONED IN OUR QUESTIONS

30% 86%71%

Go back to your answers and see if they match with the penetrations below.

56% 30%12%

LINKEDIN PENETRATION ACROSS THE THREE BANKS

MENTIONED IN OUR QUESTIONS

Go back to your answers and see if they match with the penetrations below.

SAUDI BANKS ON LINKEDIN

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

To further demonstrate how localization of LinkedIn’s insights can be useful, we attempted to localize LinkedIn’s insights for the Saudi banking sector.

SAUDI BANKS ON LINKEDIN

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0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000

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ETR

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ANNUAL SALARY (IN SAUDI RIYALS)

Conducting a simple regression analysis, regressing penetration versus average annual salaries.We have spot a strong positive correlation between salary and penetration.In other words, there’s a higher chance of having a costly payroll when hiring professionals that are present on LinkedIn.Is that a bad thing?No, next pages will demonstrate why…

SAUDI BANKS ON LINKEDIN

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80%

0% 10% 20% 30% 40% 50% 60% 70%

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PROFIT MARGIN

Another simple regression analysis, regressing penetration versus profit margins.We have spot a positive correlation between profit margin and penetration.In other words, there’s a higher chance of being profitable when hiringprofessionals that are present on LinkedIn.So does having a costly payroll is a bad thing?So far no. See next page for further demonstration…

SAUDI BANKS ON LINKEDIN

0%

10%

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30%

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50%

60%

70%

80%

0% 1% 1% 2% 2% 3% 3% 4%

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EXPENSE RATIO

Another simple regression analysis, regressing penetration versus expense ratios.We have spot a negative correlation between expense ratios and penetration.In other words, there’s a higher chance of being capital efficient when hiring professionals that are present on LinkedIn.

RULE: Regionalize/Localize data, just DON’T take LinkedIn’s reports for grantedPROMISE: There’s more to discover out there when localizing insights of other sectors and regressing penetration with other financial/performance metricsTIP: Localized insights can be very useful when conducting SWOT analysis or Competitive Landscape AnalysisTIP: Use company pages & the targeting tool to get your data.TECHNICAL TIP: Don’t quite when you reach this “<1,000”, there is a very smart way of going over it.TIP: Changes happen faster than you think, always updatePROMISE: Regionalized data WILL be useful when advertising, and WILL get you more cheap-relevant clicksTECHNICAL TIP: Don’t target more than 4,000 per campaignTECHNICAL TIP: Use CPMFINAL ADVICE: Promote LinkedIn internally, show how to optimize its uses across departments (HR, Marketing, Business Dev., Management, etc.)

THERE’S MORE OUT THERE TO

linkedin.com/in/modhayan

+MohammedAlModhayan

FEEL FREE TO CONTACT ME IF YOU HAVE ANY QUESTIONS

IN REGARDS TO THE CONTENT OF THESE SLIDE…

www.tmd.com.sa3381 King Abdullah Rd. | Khobar 34623-9003 | Saudi Arabia