{"id":13338,"date":"2013-11-20T15:00:57","date_gmt":"2013-11-20T20:00:57","guid":{"rendered":"https:\/\/bejone03.expressions.syr.edu\/trf235\/?p=13338"},"modified":"2013-11-20T12:27:29","modified_gmt":"2013-11-20T17:27:29","slug":"twitter","status":"publish","type":"post","link":"https:\/\/bejone03.expressions.syr.edu\/trf235\/2013\/11\/20\/twitter\/","title":{"rendered":"Twitter"},"content":{"rendered":"
By Sona Kim<\/pre>\n
\"Twitter<\/a>
Twitter Logo [1]<\/a><\/p><\/div>\n
1355 Market Street
\nSuite 900
\nSan Francisco, CA 94103<\/p>\n
Executives<\/strong>:<\/p>\n
\"costolo\"
Dick Costolo – CEO [2]<\/a><\/p><\/div>
\"rowghani3\"<\/a>
Ali Rowghani – COO [3]<\/a><\/p><\/div>
\"gupta\"<\/a>
Mike Gupta – CFO [4]<\/a><\/p><\/div>
\"bain\"<\/a>
Adam Bain – President of Global \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Revenue [5]<\/a><\/p><\/div> <\/p>\n
Company Profile<\/strong><\/p>\n
Twitter<\/a> is a micro blogging and social networking platform where users can read and send tweets limited to 140 characters. It is currently the tenth most popular website worldwide and boasted 232 million users in this quarter alone. Over 500 million Tweets are sent everyday and 76% of active users are on mobile. [6]<\/a> Looking at a US demographic, 16% of US adults use Twitter and one in ten adults get their news from Twitter. [7]<\/a><\/p>\n
\"Twitter<\/a>
Twitter Demographics [19]<\/a><\/p><\/div>\n
History<\/strong><\/p>\n
Twitter was initially part of a podcasting firm called Odeo <\/a>and became its own company in 2007. The company expanded its user base immensely during the 2007 SXSW Conference<\/a> after successfully placing two plasma screens that streamed Twitter messages. [8]<\/a> In 2010, Twitter announced that they would offer paid advertising, or \u201cpromoted tweets\u201d<\/a> which has become a major revenue stream for the company.<\/p>\n
\"\"<\/a>
Sponsored Ad Example [20]<\/a><\/p><\/div>\n
Financial Snapshot<\/strong><\/p>\n
According to newly filed financial documents, Twitter has a net loss $133.8 million this year compared to a $70.7 million loss in 2012. However, their advertising profits are quickly rising as the company collected $168.6 million in third quarter, for a total of $422 million in total revenue. [9]<\/a> Twitter\u2019s research and development costs are also growing immensely as the company believes these investments will turn into profit. R&D costs have increased a whopping 153% from last year alone.<\/p>\n
Advertisements accounted for 85% of revenue in 2012 and this has increased to 89% in 2013. Another form of revenue for the company is data licensing, which allows clients to access user tweets and data. Twitter has made $47.3 million from selling user data in 2013, which is a 36.3% increase from last year.\u00a0[10]<\/a><\/p>\n
Nielsen TV Ratings<\/strong><\/p>\n
\"\"<\/a>
Twitter Social TV Stats [21]<\/a><\/p><\/div>In October 2013, Nielsen<\/a> and Twitter announced a metrics system to gauge which television shows are popular. Initial research showed that for every 1,000 tweets, 50,000 people would see those tweets. There has also been a marked increase of live conversations about television on Twitter. Last quarter alone, 19 million people wrote over 260 million Tweets about live TV, which marked a 38% increase. According to an executive at Universal, \u201cthe potential value of Nielsen Twitter TV Ratings is that is provides a pathway for an advertiser to turn audience energy into brand momentum\u201d. [11]<\/a><\/p>\n
Vine<\/strong><\/p>\n
Vine<\/a> is a video sharing mobile platform acquired by Twitter in 2012. The company launched the application in the first quarter of this year and Vine quickly became the top video sharing application. It is the fastest growing app in 2013 with a 403% growth rate. [12]<\/a><\/p>\n
\"Vine<\/a>
Vine Popularity [22]<\/a><\/p><\/div>More notably, Dunkin Donuts<\/a> aired the first Vine as a TV commercial<\/a> in September during a preseason NFL game. This marks the first wave of integrative social media and television and will surely be a growth sector for Vine as other brands have begun to launch Vine campaigns, such as Nissan.<\/a> [13]<\/a><\/p>\n
Twitter and the News<\/strong><\/p>\n
One of the reasons for Twitter\u2019s success is their ability to facilitate real time information, especially with breaking news. As a result, Twitter recently rolled out push notifications in November 2013 for breaking news. However, a random group of Twitter users received a push notification when they neither followed the @BreakingNews account<\/a> or signed up for push notifications. [14]<\/a><\/p>\n
\"Breaking<\/a>
Breaking News Push Notification [23]<\/a><\/p><\/div>\n
Twitter has also expanded an account specifically for breaking news called @EventParrot<\/a>, which is a new service that allows for personalized notifications. This is a very recent feature but it shows that Twitter is recognizing their strength as an immediate news outlet.<\/p>\n
Spammers and Hackers<\/strong><\/p>\n
As an online platform, Twitter faces problems from spammers and hackers. The company estimates that over 11 million accounts are spam accounts. They announced in their initial filing that they were aware that a rise in users will also result in more spam accounts and that they will continue to terminate spam accounts as they find them. This year alone, there have been several prolific incidents of cyber hacking. Earlier this year, the company announced that over a quarter of a million users\u2019 information may have been compromised. In another disturbing incident, the Syrian Electronic Army briefly gained control of one of Twitter\u2019s domains. [15]<\/a><\/p>\n
Competitors<\/strong><\/p>\n
Twitter\u2019s major competitors include other technology giants such as Facebook and LinkedIn<\/a>. While Twitter may have millions of other users, Facebook has over times more. Twitter gains almost $3 in revenue per user but this pales in comparison to LinkedIn\u2019s $8. However, the market value of each Twitter user is $134.47. [16]<\/a><\/p>\n
\"Average<\/a>
Average Revenue from Each User (USD$) [24]<\/a><\/p><\/div>\n
\n
<\/dt>\n<\/dl>\n
IPO – $TWTR<\/strong><\/p>\n
\"\"
Top 10 Internet IPOs [25]<\/a><\/p><\/div>\n
The major story for Twitter this quarter is their initial public offering. Goldman Sachs<\/a> was announced as the lead underwriter on the deal and the company raised $1.8 billion from the IPO. As a result of the 70 million shares that Twitter issued, the company\u2019s market value grew to a little over $13 billion. Twitter stock opened at $26 and rose rapidly on its first trading day and has settled to a low $40 range currently. [17]<\/a> Twitter\u2019s IPO marks the second largest Internet IPO after Facebook. The company opted to file its IPO on the NYSE<\/a>, as NASDAQ<\/a> is heavier with technology companies and is trading under the ticker name TWTR. Currently, analysts anticipate that Twitter will become profitable by 2015 as advertising revenue streams increase. [18]<\/a> There has been some worry that Twitter is not profitable as it has posted net losses for the past three years. However, investors believe that Twitter has opted to go public earlier in its growth curve and has more opportunity to become profitable in the coming years.<\/p>\n
Twitter\u2019s Future<\/strong><\/p>\n
\"\"
Expect Twitter Revenues [26]<\/a><\/p><\/div>\n
As Twitter begins its first foray as a public company, there are many doubts that Twitter is just a fad and that their IPO will be overhyped and overvalued just like Facebook\u2019s. However, based on growth expectations and expansions into news, Nielsen ratings and popular applications such as Vine, Twitter will surely be profitable by 2015. As social media becomes more measurable, Twitter stands to bring in higher revenue streams as advertisers begin to recognize the power of this social media platform.<\/p>\n
Sources:<\/strong><\/a><\/p>\n
1. Twitter Logo Picture –\u00a0http:\/\/mybroadband.co.za\/vb\/attachment.php?attachmentid=17977&d=1347540360<\/p>\n
2-5. Executive Profiles and Pictures –\u00a0https:\/\/about.twitter.com\/company\/leadership<\/p>\n
6. Twitter User Stats –\u00a0https:\/\/about.twitter.com\/company<\/a><\/p>\n
7. Twitter News User Stats –\u00a0http:\/\/www.journalism.org\/2013\/11\/04\/twitter-news-consumers-young-mobile-and-educated\/<\/a><\/p>\n
8. Twitter History –\u00a0http:\/\/jobsearchtech.about.com\/od\/companyprofiles\/p\/Twitter-Company-Profile.htm<\/a><\/p>\n
9. Twitter Financial Costs –\u00a0http:\/\/money.cnn.com\/2013\/11\/06\/technology\/social\/twitter-ipo-price\/<\/p>\n
10. Twitter Spending Costs –\u00a0http:\/\/techcrunch.com\/2013\/10\/15\/twitter-doubles-its-q3-revenue-but-its-aggregate-2013-loss-has-widened-to-133-8m\/<\/p>\n
11. Nielsen and Twitter Ratings – http:\/\/www.nielsen.com\/us\/en\/press-room\/2013\/nielsen-launches-nielsen-twitter-tv-ratings.html<\/a><\/p>\n
12. \u00a0Vine Growth –\u00a0http:\/\/www.b2bmarketing.net\/news\/archive\/mobile-new-vine-named-fasting-growing-app-2013<\/a><\/p>\n
13. Dunkin Vine Campaign – http:\/\/www.adweek.com\/news\/advertising-branding\/dunkin-donuts-launching-first-tv-ad-made-entirely-vine-152267<\/a><\/p>\n
14. Twitter Push Notifications –\u00a0http:\/\/www.digitaltrends.com\/social-media\/twitter-tests-waters-breaking-news-push-notifications\/<\/a><\/p>\n
15. Twitter Hacks –\u00a0http:\/\/www.marketwatch.com\/story\/10-things-twitter-wont-tell-you-2013-10-25?pagenumber=8<\/a><\/p>\n
16. Twitter Competitors –\u00a0http:\/\/www.trefis.com\/stock\/twtr\/articles\/215695\/how-does-twitter-stack-up-against-facebook-and-linkedin\/2013-11-18?from=filmstrip%3Atop<\/a><\/p>\n
17. Twitter IPO Factsheet –\u00a0http:\/\/abcnews.go.com\/Technology\/wireStory\/interesting-numbers-twitters-ipo-20824494<\/a><\/p>\n
18. Twitter IPO Info –\u00a0http:\/\/www.bloomberg.com\/news\/2013-11-06\/twitter-raises-1-82-billion-pricing-ipo-above-offering-range.html<\/p>\n
19. Twitter News Demographics- http:\/\/www.journalism.org\/2013\/11\/04\/twitter-news-consumers-young-mobile-and-educated\/<\/p>\n
20. Sponsored Ad Image –\u00a0http:\/\/www.rebelcmc.com\/wp-content\/uploads\/2013\/09\/4573997468_222cebf8ff.jpg<\/p>\n
21. Twitter Social TV Image-\u00a0http:\/\/www.mediabistro.com\/alltwitter\/files\/2012\/12\/twitter-social-tv.png<\/p>\n
22. Vine Popularity Image –\u00a0http:\/\/www.b2bmarketing.net\/news\/archive\/mobile-new-vine-named-fasting-growing-app-2013<\/p>\n
23. Breaking News Push Notification Push – http:\/\/www.digitaltrends.com\/social-media\/twitter-tests-waters-breaking-news-push-notifications\/<\/p>\n
24. Competitor Revenue per Customer Graph –\u00a0http:\/\/www.trefis.com\/stock\/twtr\/articles\/215695\/how-does-twitter-stack-up-against-facebook-and-linkedin\/2013-11-18?from=filmstrip%3Atop<\/p>\n
25. Top Internet IPO Image – http:\/\/s.wsj.net\/public\/resources\/MWimages\/MW-BO775_top_ip_MG_20131107095949.jpg<\/p>\n
26. Twitter Expected Revenue Graph –\u00a0http:\/\/www.trefis.com\/stock\/izea\/articles\/215754\/twitters-long-hard-path-to-profitability\/2013-11-19?from=artPopin<\/p>\n
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By Sona Kim   1355 Market Street Suite 900 San Francisco, CA 94103 Executives:   Company Profile Twitter is a micro blogging and social networking platform where users can read and send tweets limited to 140 characters. It is currently … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":317,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[97,1479],"tags":[2074,1975,2060,2059,2050,1941,2047,2062,1974,2053,2056,2049,1553,2065,2055,1745,2064,1743,2045,2052,2073,339,277,2057,1716,2071,2066,2070,2042,2068,2051,2063,2044,1550,2069,1552,2048,2067,1746,2072,2046,2043,98,186,2058,1744,1555,2061,1702,2054],"_links":{"self":[{"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/posts\/13338"}],"collection":[{"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/users\/317"}],"replies":[{"embeddable":true,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/comments?post=13338"}],"version-history":[{"count":23,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/posts\/13338\/revisions"}],"predecessor-version":[{"id":16803,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/posts\/13338\/revisions\/16803"}],"wp:attachment":[{"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/media?parent=13338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/categories?post=13338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bejone03.expressions.syr.edu\/trf235\/wp-json\/wp\/v2\/tags?post=13338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}