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Marketing Insights

What does Twitter's IPO Mean to Your Marketing?

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twitter_ipoTwitter has become a force in the digital global culture with 230 million users, tweeting, re tweeting, following and lurking. News anchors report on tweets form politicians, celebrities and the Pope. Hashtag has become a popular activity that groups your post with other trending posts on that topic and keyword.

Twitter has changed the way we think about communicating and delivering news.

The impact is still playing out. Using Twitter as a marketing tool has not been adopted by all. Many still find it overwhelming to use and follow.

Building a business that is profitable is now in the public arena as Twitter raises investment money through its IPO offering. The initial IPO price for Twitter was set at $26 per share. Trading began November 7th, 2013 and share price rose to a high of $50and closed at $44.90 on November 7. Twitter was valued at $25 billion yet it has never turned a profit and posted a  loss of nearly $65 million in its recent quarter.

Mark Mahaney, an analyst at RBC Capital Markets said, “When people use Twitter they are following certain people, they’re searching for specific information. There are powerful marketing signals that are almost Google-esque, something that Facebook doesn’t really have.” Google-esque?? We’ll see if Twitter joins the ranks of Google, in terms of profitability. In an interview with CNBC, Twitter CEO Dick Costolo said, “There’s nothing structural about Twitter that prevents us from having the kind of margin profiles of our peer group.” (Read the interview and Twitter's plans)

Twitter has plans to give new users better experience to integrate them and get them to return. In the #Forbes article, Costolo sketched out his two-pronged plan for making that happen. The first part of the plan is improving the “on-boarding experience” so that new users trying out the service have a better experience right away. Whether these plans will be enough to start Twitter on a path to fiscal health will be seen over the coming months.

If you are an avid user, expect changes in Twitter's interface. If you tried Twitter or just don't see how it can help your marketing you are not alone. As we mentioned in other articles, Twitter isn't  required marketing tool. Determine where you can best reach your customers.

Some companies adapted Twitter for communications with service and sales reps to improve customer service. Others use it to interact with customers. How your company uses Twitter should be considered when planning marketing efforts and budget.

Prioritize the marketing tools you incorporate into your efforts based on 2 aspects: list in order where you can reach your best audience and which marketing tools fit your budget and resources to increase online authority with search engines. When it comes to tools like Twitter, Facebook, Stumbleupon, etc., focus efforts to raise your page ranking. This will increase organic search results for your company and reduce your ad costs.

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