Coming in at an estimated value of $9.8 billion, Twitter’s forecasted initial public offering has the finance industry all fired up. But before anything happens, Bloomberg says this social powerhouse is aiming to reach $1 billion in revenue by 2014. Their team is strategically expanding internationally and brought in some extra dough by rolling out promoted tweets and promoted trends in hopes to hit their goal.
Truth be told, Twitter is awesome at what they do. And with a talent pool like theirs, they are probably capable of much more. However, in order to keep everything calm, cool, and collected during these progressive times, Twitter hired Morgan Stanley’s Managing Director, Cynthia Gaylor, to run corporate development.
There has been a lot of speculation thus far, but the mystery has yet to be solved. On one side, the industry is kicking around the idea of Twitter’s IPO. On the other, you have CEO, Dick Costolo publicly stating, “We have every hope and belief that we will be a successful — independent — company” and that he wants to “preserve the user experience.” As a personal Twitter user myself, Costolo’s intentions are right where they should be. However, their new banker’s background in IPOs, mergers, and capital management with a focus on the internet, e-commerce, mobile, and software sectors suggests the company has other intentions.
A CNBC interview asks Twitter CEO, “Where do you see Twitter in five years?” Costolo replies, “I see Twitter as a bright, independent, successful company that is hopefully still changing the world in fascinating ways.”
“Is Twitter more of a way to access news or more of a news platform?” The CEO responded, “40% of our users don’t actively tweet. They simply log in and consume information and I think that number will continue to grow as we become evermore mainstream.”
When asked about Twitter’s challenge and tactics to grow the amount of non-US ads, Costolo replied, “It is absolutely the case that we are looking to grow our international advertising base.”
“What is your biggest challenge from revenue perspective?” He responded, “Our biggest advertising challenge is making sure our revenue reflects the percentage of users that use Twitter in various countries. We’ve got users all over the world. The base is growing quite fast and we need to expand our advertising platform globally beyond just the couple countries we are in now.”
Now, even though Costolo said he hasn’t had the talk with Gaylor, it would be foolish to think they haven’t rapped about taking Twitter public.
The opportunity for Perfromance Marketing
We all watched Facebook go public and where it was chaotic at times, it opened up great opportunity for marketers everywhere. We’ve had mixed thoughts about Twitter’s IPO, but it’s hard to believe that the performance marketing industry wouldn’t grow if it happened.
Diablo Media does a significant amount of work with Facebook already. Our experience with this social outlet would only make us quicker when trying to learn the Twitter dance.
We would love to hear what you have to say, so feel free to comment below. If you want to dig a little deeper, check out the rest of CNBC’s interview with Twitter’s CEO here.