On November 7 Twitter celebrated it's first anniversary of being a public company. However investors haven't had much confidence in the company. Some believe that it can grow and become a Google type stock, and some believe it won't grow much at all. Even though Dick Costolo, who runs the company, has made big tweets in the past promising major growth in the next few years.
Twitter gets it's revenue from advertisers and inserted a 'promoted tweet' in people's feeds. They don't get any revenue from people signing up and creating accounts. However they don't seem to have enough space on their home page for more advertisements that will give them enough revenue to compete with Google and Facebook.
http://www.economist.com/news/business/21631045-all-its-success-so-far-social-media-firm-may-not-achieve-scale-many-investors-hope
I don't see twitter growing as big as google, but could definitely see it surpassing facebook. Adds on twitter are in the form of a tweet that can't be blocked with ad block and are inserted directly into all viewers timelines. As adblock becomes bigger online and reduces ad revenue for websites such as Facebook, and TiVo allows television watchers to skip commercials, advertising directly into twitter users timelines could be a better alternative for companies.
ReplyDeleteI don't think twitter is going to surpass Facebook or Google. While it is a good site to post your thoughts, some people are getting sick of the way they are contently bombarded with advertising tweets. Also, Facebook and Google go out and quire other companies on the regular to keep value in their company in many different forms. This is something Twitter should do more of if they really want to compete.
ReplyDelete