Twitter to Go Public

Scott Lambert

Popular social media site Twitter is about to be floated on the stock market; however, potential investors still have no idea what it is worth. Anxious to avoid the overinflated share prices that notoriously got Facebook into trouble, Twitter is taking advantage of the fact that its annual income is still under $1bn to use the JOBS Act of 2012, which entitles it to keep its official valuation secret until just before the floatation is launched.

All this uncertainty about the site’s financial future is adding to uncertainty about its future as a focal point for social media marketing. The general expectation is that it will grow stronger after going public, but as yet there is no metric by which to measure this. What is known is that over half Twitter's ad revenue for this year is expected to be from mobile device users; as the mobile market grows, this is likely to give it an increasing advantage over the competition.

With 300 million users, Twitter is probably at a better stage in its development cycle for going public than Facebook was with 1billion users; crucially, Twitter still has plenty of room to grow. This means prospective investors can anticipate their shares growing in value, making a purchase more worth their while. A transaction this week suggests that the company is currently valued at around £10.5bn; however, other estimates have put the price as high as $15bn and in total its shares are unlikely to sell for less. This should afford a measure of security for businesses wondering about investing in Twitter-based social media marketing plans.

Another factor that may counter-intuitively work in Twitter’s favor is its comparatively slow rate of growth. Although this may put off some bigger investors, it is also an indicator of stability. Crucially, this growth has been steady and it does not seem to be easily affected by changes elsewhere in the social media marketplace.

With both user and search engine preferences increasingly tipping in favor of subtle advertising that does not distract from the core function of a system, Twitter is looking like a good bet for advertisers and for those set to benefit from their interest. As the public popularity of search engines has waned in recent months, Twitter has continued to build on its advertising potential.

To find out more about how you can take advantage of this and better manage your Twitter advertising, call Xcellimark at 888-318-3950 ext 211 to speak with an internet marketing consultant today.

Scott Lambert

Written by Scott Lambert

For 35 years, Scott has been at the forefront of digital transformation and how it is effectively applied in businesses and organizations to market, sell, and support customers and members more successfully and cost effectively. Scott is President and Co-Founder of Xcellimark, an award-winning digital marketing agency serving clients throughout the U.S., Canada, Central America, and Germany. Xcellimark helps businesses succeed through the implementation of its unique digital marketing and sales approach specifically designed to meet their specific goals and objectives. Scott’s marketing, sales, and operations experience have included key management positions at industry leaders including AT&T, iXL (now SapientRazorfish), eSchool Solutions (now TalentED), and BellSouth, where he led the product development, marketing efforts, and market launch of, the second public ISP developed in the U.S. Scott is the author of articles highlighted on leading online publishers such as LinkedIn, Business 2 Community, and he was recently featured by LinkedIn in the Entrepreneur magazine article on “No Time for Marketing? Hire a Freelancer.” His engaging personality and wealth of real-world and business experience make Scott a frequently requested speaker. Some of his engagements include being the featured speaker in a series of Orlando Business Journal seminars on Digital Marketing, speaking at the WSI London conference, and at international conferences in Belize. Scott has a Bachelor’s degree in Accounting from the University of Mississippi and a Master’s of Science in the Management of Technology from the Georgia Institute of Technology (Georgia Tech). Scott has been active in global mission efforts and is a board member of Global Teams, a Christian outreach organization. He lives in Winter Springs, FL with his wife Nancy and dog Sadie.

Topics: Social Media

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