As Twitter will soon go up on the stock market for various people to invest on, its future profits and growth must be considered. One of the most known ways for social media websites to make money is through advertisements.
As an active Twitter user, I have seen Twitter’s advertisement efforts for the past two years. Usually they have a sponsored tweet, which I assume shows up on everyone in the world’s timeline of tweets or a selected audience’s timeline, once every day or so as shown on my Twitter timeline in this picture:
And also advertisements can be done in trends which usually changes everyday or so as well shown in this picture:
If someone were to look into invest in Twitter when it goes public, I would be a little worried that Twitter only has two visible ways for a active user like me to see. Whereas its competition, Facebook, has 4 visible ads on its homepage that changes depending on the user’s interest and search history like on this picture:
Although Twitter has promised new ways of advertisement as the Financial Times article reports, but whether or not their new strategies will work remains a question and new investors should definitely look into Twitter’s future growth regarding their advertisement value.
References:
Steel, E. (2013, October 7). Financial Times. Retrieved from Financial Times : http://www.ft.com/intl/cms/s/0/e4b650f4-2f5b-11e3-8cb2-00144feab7de.html
Pictures: All the pictures are my own, captured from my own social media account.