Investors who buy social media do not know which company will be leader, but they know that this sector will play the major role in life of society – Financial Times explained. So if you play the securities market, it makes sense to buy everything. Analysts say that following some indicators Twitter is undoubted leader.
Advertising for mobile • Investors’ optimism is supported by rapid growth in revenue and users. Twitter began advertisement sale in April 2010, that year it earned 28 mln dollars. In 9 months revenue became 422 mln dollars. At the end of 2010 the company had 54 mln active users, now their number is over 232 mln. At meeting with investors general director of Twitter Dick Costolo said that number of users of this social network can grow many times. Today’s audience is only 10% of potential number of users. • 89% Twitter’s revenue is earned on advertisement. Mobile telephones advertisement is very important for investors because a lot of smart phones are bought nowadays. Facebook’s(Twitter’s main competitor) capitalization fall due to the fact that company couldn’t explain investors how it will monetize mobile audience. Further recovery of capitalization due to the fact that company could do it. Twitter is one step ahead: mobile users are 76% of its audience and generate 70% of advertisement revenue. Facebook: mobile users – 73%, revenue – 49%. • Twitter is simple for telephone users and not so complicated as FB.
FROM THE SHOW TO THE CONTACT • Now Twitter makes money on account of three main promotional products. • First – promoted trend; it allows advertiser to choose one of interesting and popular requests of day an show everyone who searches for this trend. • Second – promotional account: that’s advertising module, which is situated on tab of recommended accounts on right column. Advertising account is shown them who is interested in this subjects(тематика). • Third – advertising tweet. It allows to choose show date, readers’ location who will see a message in their tape. • Twitter sells major part of advertisement according to result. Thus advertisers pay money not only for review but for communication with user who is interested in advertisement, rights answers, retweets and mentions. Advertisement becomes more efficient for advertiser.
MULTIMEDIA ADVERTISING • Advantage of Twitter is that it can work on several advertisement markets: 1)mobile advertisement; 2)internet advertisement; 3)advertisement in social networks; • Twitter competes for budgets which could own Google for contextual advertising, with Yahhoo! for Banners and so on… • Nowadays TV offer advertisers place advertisements in Twitter – usually it’s fragment of telecast with infomercial(рекламный ролик). On the West Twitter is closely connected with Tv, but in Russia it’s no so actual though it would be better advertisers to think about it.
NETWORK FOR ANALYSTS • 15% of Twitter’s revenue is earned by giving analysts access to database, where every day over 500 millions tweets are added. Companies buy this information to analise consumers’ trends and to know what they want. With the help of access to the Database of Twitter they can see consumers’ opinion about their brand or product. BBC expert Samira Huseyn gives an example: USA football team analised popularity of its players to understand how many t-shorts with their portrets will be bought.
