Just a ‘Tweet’ Away

Twitter, a well known online social networking and micro-blogging service that allows many users to connect all over the world. Although it is an American based company, the company’s plan of expanding internationally has led to “filing for an initial public show” (Jolly) recently.  Even though Twitter gained many users from foreign countries outside the United States, the advertising revenue generated is far more from American users than foreign users. Thus, the main goal is to expand it’s advertising market for international users and monetizing its users’ platform. Several factors restricting this expansion- the amount of high-end smart phones users, authoritarian government bans on twitter and rivals from other services.

Personally, Twitter has a positive strategic plan towards international advertising expansion but the main factor that’s restricting it is the government ban in China. China has the largest population and being able to leap that border will definitely boost users and the company’s advertising revenue. On the other hand, the number of smartphone users shouldn’t be a big issue because Twitter can still be accessed through laptops and computer desktops and smartphone is currently a growing industry, which eventually will compensate to the current lack of users in the future. Since Twitter already created such a phenomenal existence in the social networking service industry, other rival services can easily be avoided by adding new features, consistently updating the app or even a collaboration to gain better brand reputation. Overall, Twitter has the potential of expanding worldwide in the advertising market once these barriers are tackled down.

Sources:

http://www.nytimes.com/2013/10/05/business/twitters-ipo-plan-has-an-international-focus.html?ref=business

https://d28wbuch0jlv7v.cloudfront.net/images/infografik/normal/ChartOfTheDay_608_Twitter_s_global_advertising_revenue_from_2010_to_2014_n.jpg

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