Xing vs. LinkedIn: Comparing Features, Geographical and Demographical Distribution Erol Unkan University of Camerino School of Science and Technology FHNW School of Business [email protected] ABSTRACT 1.2 LinkedIn This short paper shows an overview about the general features and geographical distribution of Xing and LinkedIn and makes a comparison between the two platforms. LinkedIn is a US American business network founded in 2003. It is listed on the NYSE with a revenue of $972 million (2012). About 4’800 employees are working in the company (2012). The company has acquired various companies working in the social networking field [5]. Reid Hoffman, its founder also takes part in multiple Web 2.0 companies such as PayPal, Mozilla and Flicker [6]. KEYWORDS Business Networks, Xing, LinkedIn, Features, Geographical Distribution Xing and LinkedIn are both business (or professional) networks. These are similar to social networks in every way but provide a platform to network, share events and have discussions mainly on a professional basis instead of private life connections. Business networks try to replicate onto an online platform what is happening in the offline real world to simplify and quicken networking processes. LinkedIn focuses on providing services mainly in North America and Asia. It has about 259 million members in total. In the DACH region LinkedIn has 4 million members [7]. However, there is no reliable source on how many paying members the network has. Considering the revenue of $972 million in 2012 is made up entirely of subscriptions fees – which is mostly unlikely – divided by the minimum annual subscription fee of $95.40 and the maximum subscription fee of $5999.40 [8] the amount of paying members ranges from 10’189’000 (3.9%) to 162’000 (0.06%). Notable business networks are Viadeo (France), Xing (Germany) and LinkedIn (USA) [1]. The latter two will be discussed in the following chapters. These numbers are unreliable, but they show that even with the best possible solution, LinkedIn still has significantly less paying members than Xing. 1.1 Xing 2. COMPARISON OF FEATURES 1. INTRODUCTION Xing is a German business network founded in 2003. It is listed on the German stock market DAX with a revenue of €73.3 million (2012). 519 employees are working in the company (2012) [2]. It is part of Burda Digital GmbH as of December 2012 [3]. Xing focuses on providing services mainly in the DACH region (German, Austria, Switzerland), where it also has significantly the most members [2]. It has about 14 million members in total 808’000 paying members [2] or 5.8% of the total. In the DACH region Xing has 7 Million members [4]. The comparison of the features consists of two different tables. Table 1 and 2 compare assets of both platforms and basic features that come in for free for every member. Table 3 compares premium features that the user has to pay for. Different subscription fees exist for different features. Unless otherwise noted all information of table 1 and 2 is taken from [9], and all information from table 3 is taken from [10]. The comparison shows that the features mostly differ in the free versions of the platforms. The premium functionality is very similar, and in most cases identical. The main difference is the different price settings of both networks. This result was also shown in [11]. 2.1 General Assets Xing Continuation from previous column … Company profiles only available with most expensive subscription. Free company profiles. Job advertisements supported. The prices are generally more expensive, the service better with more options available. Job advertisements supported. The prices are generally cheaper and the functionality simpler. Xing LinkedIn Over 50’000 discussion groups [12]. Less, but growing discussion groups. Outdated functionality compared to other social networking sites (Facebook, Google+). Outdated functionality compared to other social networking sites (Facebook, Google+). Table 2 Basic Features Mobile compatibility, but limited functionality. Mobile compatibility, but limited functionality. 2.3 Premium Features Only second option for startups. Is the main focus for startups [13]. More detailed, but more difficult to quickly understand the main functions. More superficial, but simpler and clearly arranged layout. Slowly growing (20.5% from 2011 – 2013, 8.8% from 2012 – 2013) [14]. Quickly growing (97.7% from 2011 – 2013, 38.5% from 2012 – 2013) [15]. Table 1 General assets 2.2 Basic Features Xing LinkedIn Event organizing is possible and encouraged. The operability is generally simpler and more understandable. Event organizing is possible. The operability is generally more difficult. No business news. Business news on the home page. Media is not yet fully supported. Media such as photos and videos are supported. Only the profile pictures of visitors are visible. Whole profile of visitors is visible to every member. Easier/better search functions for headhunters and recruiters. Main focus on entrepreneurs instead of recruiters. Messaging supported with limited functionality. More functionality in messaging (archiving, flagging, trash). Continuation in next column … LinkedIn Xing LinkedIn €6.25 – €9.95 per month $7.95 – $499.95 per month [8] See who watched the own profile. See who watched the own profile. Write to 20 non-contacts per month. 3 – 25 messages to noncontacts per month Advanced searching (position, interests…) enabled. Advanced searching (no detailed description) enabled Company profiles enabled. Company profiles enabled for free. No automatic searches. Automatic searches with predefined search terms 10 times per day. Table 3 Premium features 3. COMPARISON OF GEOGRAPHICAL DISTRIBUTION The comparison of the geographical distribution consists of three different measures. Table 4 shows the website ranking in the most important countries (USA and the DACH region) and globally. The ranking is show in absolute numbers and percentage of visitors from specific countries. The ranking of Austria and Switzerland are n/a (not applicable), the reason being that it is smaller than the 10th place of the total ranking, which is the Netherlands with 1.8% percent of the total visitors. The numbers show how different the geographical distribution is among both networks. More than 80% of Xing’s visitors are from the DACH region with US Americans being in the vast minority of 2.6%. LinkedIn’s statistics show 1 the contrary distribution. More than of all visitors of 3 LinkedIn are US American, while only about 1.9% – 5.7% are from the DACH region (𝐷 = 1.9% + 𝐴 = 0% + 𝐶𝐻 = 0%; 𝐷 = 1.9% + 𝐴 = 1.9% + 𝐶𝐻 = 1.9%). The data is taken from [16] and shows the numbers from 20 January 2014. Website Ranking Globally and USA/DACH Xing total Xing relative LinkedIn total LinkedIn relative Global 331 100% 12 100% USA 4384 2.6% 8 34.5% Germany 18 71.2% 24 1.9% Austria 31 6.3% n/a n/a Switzerland 32 4.6% n/a n/a Table 4 Website ranking 4. COMPARISON OF TRAFFIC The traffic comparison of both platforms consists of the bounce rate (percentage of visits that end on the first page of the website [17]), the page view per visitor, daily time spent on the website and the percentage of how many people visit the website from home versus from a company. The numeral traffic source of Xing is not available but is presented as over-represented and thus more than 50%. The bounce rate is significantly higher with Xing. Reasons might be that there is more communication happening on LinkedIn, so the user clicks on a new message or general new notification icon. Another possibility is the abundance of business news on Xing, leading user to leaving the website if there are no new notification rather than clicking on a news headline presented in LinkedIn. Page views are also higher with LinkedIn. A reason might be the higher superficiality of LinkedIn compared to Xing as shown in the features comparison. The more information is presented on a single website, the less other pages have to be visited. The significantly higher traffic source from working places with Xing provides another explanation for the different statistics. It is likely that users at a workplace have less time available to check a website thoroughly resulting in only quick glances at a website and thus higher bounce rates, less page views and lower time spent on Xing compared to LinkedIn. Traffic Comparison Xing LinkedIn Bounce 38.4% 30.1% Page views per Visitor 5.68 8.27 Daily Time 6:31 7:28 Traffic sources (Home vs. Work) Work overrepresented H: 66% W: 34% [18] Table 5 Traffic comparison 5. COMPARISON OF DEMOGRAPHICS 5.1 General Demographics Table 6 shows the demographics consisting of relative comparisons of the gender and the educational level measured in members holding a university degree (undergraduate, postgraduate, Bachelors, Masters). The relative number in the education row should be treated carefully, since not all members include the information on their profile. LinkedIn’s data was calculated by [18], whereas Xing data was obtained on [19]. Xing LinkedIn Gender M: 48% F: 52% M: 61% F: 39% Education 48% 78% Table 6 General demographics 5.2 Age Demographics Table 7 shows the age distribution on both networks. It can clearly be seen how different the age distribution is among the platforms. Xing shows a concentrated and consistent peak among the age group of 25 – 54. Combined with the data from table 8 it can be assumed that most of the members are entrepreneurs owning small to medium sized companies that represent themselves on Xing. Young people such as high schoolers and students don’t seem to be attracted to the platform. LinkedIn shows a different demographic situation. The distribution is less concentrated and while the main group still consists of 35 – 44 year old members, the young and very population as well as the older demography are higher. This is also congruent with the employee count presented in table 8. The larger the company the higher the possibility is to show variety in the age demographics, starting with the intern up to the senior board member. The most interesting numbers are highlighted to differentiate them from the rest. The data from table 7 and 8 was obtained from [20] and shows figures of May 2012. Age Demographics 6. SUMMARY Xing LinkedIn 0 – 17 4% 6% 18 – 24 4% 6% 25 – 34 28% 21% 35 – 44 34% 35% 45 – 54 13% 12% 55 – 64 13% 16% >65 4% 4% Table 7 Age demographics 5.3 Employee Counts in Companies Company sizes go hand-in-hand with age and gender demographics. The smaller the company, the less diversity will show. Table 7 shows that Xing is preferred by people working in small to medium sized companies that make up 46% of the whole membership. There are two spikes in the range of 1’001 – >10’000 sized companies. Reasons might be that companies in the DACH region generally tend to be SME, while there still is a large number of large enterprises [21], [22]. LinkedIn is strongly concentrated in the >5’001 sized companies that make up 51% with a spike in the 51 – 200 sized. Since most of the members of LinkedIn are from the USA it is safe to assume this results from the fact that large corporations are an important factor in the US economy. The spike in the 51 – 200 range might result from the trend that startups prefer LinkedIn over Xing. Company Sizes Xing LinkedIn Single 5% 3% 1-10 16% 6% 11-50 15% 8% 51-200 15% 11% 201-500 9% 8% 501-1’000 7% 6% 1’001-5’000 13% 6% 5’001-10’000 4% 17% >10’000 16% 34% Table 8 Company sizes Though it is difficult to compare platforms that work in different geographical regions, it is still possible to draw conclusions about similarities and differences. The main interesting fact is that both companies still go strong within their regions. The specialization works for both platforms as the numbers of the website ranking show. Another revelation is that both networks provide similar functionalities – at least in the paid version – but with a very different layout and style. Whereas Xing targets business owners, managers or employees in the DACH region and provides great search functions for recruiters, LinkedIn seems a bit more of a social networking and communication site with media integration, news and more free functions. 7. FUTURE DEVELOPMENTS Based on the functionality and geographical, as well as demographic distribution it might be a possibility for Xing to gradually move to become an individual job searching and job advertising platform. The recent acquisition of kununu, the market leader for employer ratings in the DACH region, only further proves this point [9]. LinkedIn is on a great path to further strengthen its position as the leading international business network. However, both platforms need to update their functionality and design to the next generation rather sooner than later. 8. REFERENCES [1] "Wikipedia - Professional Network," [Online]. Available: http://en.wikipedia.org/wiki/Professional_network. [Accessed 21 January 2014]. 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