Analysis of Twitter’s latest Offering Document reveals their large numbers of devoted users are not raising relative profit. Compared to other social media channels such as Facebook and LinkedIn, Twitter collects less average revenue per user, and as a result, less overall total revenue. Twitter’s inefficiency is associated with their limited use of advertising. While the company’s international recognition should translate to higher revenue, will Twitter lose its original purpose if advertisers influence modification of classic features, and designs?
Similarly to Twitter, Facebook was formerly concerned over lack of advertising; which led advertisers to insert unsubscribed adverts throughout every user’s newsfeed. However, users complained as they considered these commercials spam. If Twitter follows a similar path, users will feel robbed of their customized news feed where they choose
who to read about and follow. The twitter feed being the sites main function, users will then have less incentive to visit the site as something they felt was personal is bombarded with unwanted ads.
As a limited social media outlet, Twitter attempting to increase average revenue per person with advertisements will leave current users frustrated. The company will lose devoted users and the unique purpose of sharing one’s ideas and thoughts.
Koh, Yoree, and Suzanne Vranica. “Twitter Advertisers Say Service Needs More Users.” The Wall Street Journal. N.p., n.d. Web. 1 Sept. 2013. http://online.wsj.com/article/SB10001424052702303492504579115753167390832.html?mod=WSJ_hp_LEFTWhatsNewsCollection
Louis, Tristan. “Is Twitter The New LinkedIn Or The New Facebook?” Forbes. Forbes Magazine, 05. Oct. 2013. Web. 1. Oct. 2013.
http://www.forbes.com/sites/tristanlouis/2013/10/05/is-twitter-the-new-linkedin-or-the-new-facebook/
Figure 1 : http://theinspirationroom.com/daily/design/2012/6/new_twitter_logo.jpg Web. 1. Oct. 2013.