Twitter has filed for its much-anticipated IPO. Analysts estimate the company’s value at around $10bn (£6.3bn). eMarketer predicts that Twitter will earn around $583bn in ad revenues this year, rising to just short of $1bn in 2014.Around $308bn of this $583bn will come from mobile ads.
Here a number of leading industry figures offer an opinion on what the IPO means for the micro-blogging site.
Nick Adams, head of digital development at media agency, Mindshare.
“The big question is whether Twitter will be able to consistently deliver the kind of growth, post-IPO, that shareholders will demand. It will need to achieve consistent increases in ad revenues without annoying users by flooding the platform with ads- and this is a very tricky balancing act as Facebook has discovered. There are significant barriers to achieving consistent growth. For example, question marks still longer over the effectiveness of social marketing at driving hard business metrics like sales. Also, Twitter’s much-touted ‘special relationship’ with TV still needs to be evaluated in detail-hence why Twitter has formed a strategic alliance with Kantar Media in the UK. And finally, Twitter’s ability to exploit cross-device targeting and attribution is still in the early stages of development. Indeed, its recent acquisition of MoPub is a specific attempt to accelerate its cross-device targeting capabilities. However, shareholders will clamour for growth from the get-go, so Twitter will need to manage integration of this technology carefully, while also delivering a more complex sales pitch to agencies and clients. Ultimately, it will come down to talent. Will it be able to get enough of the right people on board to manage all of these complex transformations?”
Clark Fredicksen, vice-president eMarketer.
“The bottom line is that Twitter has grown very fast in the last few years. It has seen strong growth on its mobile platform. Twitter tells a strong story about its platform working well with other media such as TV. And its gained strong interest, and ultimately, revenue, from advertisers as a result. Ostensibly it’s also going to avoid some of the criticism that Facebook faced during its IPO by filing confidentially. Twitter has already answered many of the questions that dogged Facebook during its IPO. Mobile is a strong component of Twitter’s user base. It also accounts for about half of its ad revenues, and it’s seen dramatic growth in the last year as a result of mobile.”
Kristen Brewe, director of marketing and communications at the Internet Advertising Bureau (IAB).
“Twitter seems poised to leverage the mobile space, particularly with the acquisition of MoPub earlier this week- a mobile ad exchange. Social media is all about mobile, because that’s where today’s “always on” consumer lives. We wake up with our phones in the morning, go to bed with them at night. In between, we’re checking in for bite-size updates from friends, celebs, brands and the latest news- all through social channels. Getting the right messages I want at the right time in the right place is extraordinarily useful to me as a consumer and useful to advertisers who would rather talk to people when and where they want to be talked with.”