On the eve of its initial public offering, which could raise billions and mint new millionaires, it’s worth exploring Twitter’s business model and prospects. Can a community of ephemeral messaging morph into a serious, profitable venture? CNBC’s Heesun Wee reached out to Brian Solis to explore how Twitter is changing the world and how it can also win over Wall St.
In her article, “How Twitter wants to change the world and make money,” Wee and Solis look Twitter as a promising but nascent advertising platform that is having a tremendous cultural impact.
“What Twitter is selling essentially is a new type of advertising platform, scalable across desktop and mobile,” said Brian Solis, principal analyst at Altimeter Group, a San Mateo, Calif.-research group.
“Twitter is beloved by a much more connected person, who understands the pace of a real-time world,” said Solis. “The experience you have on Twitter is what you make it. I don’t follow people who tweet pictures of their food.”
“People connected based on interest is incredibly valuable to advertisers,” Altimeter Group’s Solis said. “Twitter will be defined by its success in training the marketplace to understanding their value.”
In addition to revenue growth, Twitter’s user base is gaining traction too, especially abroad. Some of Twitter’s most active users are outside of the U.S. including those in Brazil and the United Kingdom, Solis said. Twitter plans to capitalize on its international growth, and plans to launch its self-service advertising platform in selected international markets, according to the SEC filing.
Twitter also is courting media and entertainment executives. Twitter has announced deals with CBS and ESPN among others. “Twitter’s mobile ecosystem is about capturing real-time information, and the entertainment world is a natural fit. You’re plugging into people’s curiosity and focus,” Solis said. “I can tell you right now what viewers are watching. This is not the old Nielsen house.”
Read the full article here.