Twitter’s ‘M’ Conversations
By Dr. Iris Mohr, Chief Editor and Founder, Marketing Fashionista
Whether about politics, entertainment, business, fashion, crime, the Royal Wedding, society, or any trend, Twitter drives ‘M’ conversations.
MANY conversations. Twitter’s base of 232 million active users makes it a hotspot for driving online conversations.
Twitter drives MONEY conversations relating to Twitter’s business model questioning whether it can turn into a serious, profitable venture. Twitter has yet to turn a profit, and hasn’t developed a proven advertising model. Twitter reported $317 million in revenue over the past year, a lot less than the $3.7 billion in annual revenue Facebook reported ahead of its IPO last year.
Twitter drives MARKETING conversations. Twitter has invested money into building its loyal fan base, allowing advertisers to pay for promoting messages appearing in user feeds. “People connected based on interest is incredibly valuable to advertisers,” said Brian Solis, principal analyst at Altimeter Group, a San Mateo, Calif.-research group. But, so far, it’s unclear whether those efforts will be successful.
“What Twitter is selling essentially is a new type of advertising platform, scalable across desktop and mobile,” says Solis. Clearly, advertising plays a huge role in a social media company’s value – and the success of social media stocks.
Does this advertising platform work? As a whole, social media haven’t provided the return on investment that many advertisers want, says Larry Chiagouris, a marketing professor at Pace University in New York. According to Chiagouris, Twitter’s emphasis on real-time conversation about events such as the Super Bowl or the Academy Awards means even the strongest ads don’t have much lasting value.
Worth MENTIONING, advertising on social media can be risky business for brands. Consider all the things that people can post; things you have no control over that can potentially negatively impact brands. While consumer brands go to extreme measures to get attention in social media, excessive social media creates clutter and alienates audiences.
MORE to come from MARKETING Fashionista.Tags: Advertising, Brian Solis, Business Model, Communication, Conversations, Drive Money, larry chiagouris, Mass Relevance, Money Conversation, Online Conversations, pace university, Profitability, Real-time Web, Relate, royal wedding, Text Messaging, Tweet, Twitter, Venture, Websites, World Affairs