Twitter Inc (NYSE:TWTR) Winging on U2opia in IPO Wake




Sunday, 8 December 2013

Twitter Inc (NYSE:TWTR) Winging on U2opia in IPO Wake

Post its hugely successful IPO, micro-blogging site Twitter Inc (NYSE:TWTR) has been very busy trying to ensure that it grabs that proverbial worm. Stagnancy on any front spells a risk of getting thrown out of the competition ring. No matter how large a company is, innovation is the only way of ensuring that spot in the sun.

Twitter to Feature Everywhere


TWTR is all set to target the vast user-base that does not use smartphones or have handsets sans Internet services. Those who use feature phones will also be able use the microblogging service. The Fonetwish service by U2opia Mobile uses a telecom protocol called Unstructured Supplementary Service Data. Users of this service just have to dial a particular number to receive a Twitter feed with all the trending topics. The emerging markets are flooded with feature phones and their ballooning population makes them a perfect launch-pad for the service.

Come March 2014 and Twitter Inc (NYSE:TWTR) can be in very hand on every phone. Of course, users of these phones will have access only to a text version and the technology will not transmit videos or images- India, Brazil and various other emerging markets are the current hotspots for technology and communication companies and the Blue avian might just be tweeting in every hand across the planet. Currently, Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOG)’s GoogleTalk make use of a similar service from U2opia.

‘AD’ding More Value


Advertising has always been and is big business. Twitter Inc (NYSE:TWTR) as well as the slew of social networking sites like Facebook Inc (NASDAQ:FB) and search engines like Google Inc (NASDAQ:GOOG) rake in big dollars through advertising every year. To this effect, Twitter Inc (NYSE:TWTR) now has a new approach to advertising.

Now “promoted tweets” can be delivered to any customer who indicates an interest in a particular company’s brand via the “tailored audiences” service, Promoters can define their own groups of current and potential customers and connect with them via Twitter with customized messages, said the company.

The Raw Power of Data Mining


In 2012, TWTR garnered $47.5 million from licensing the company’s data. Y-T-D, there has been a 36% rise in its licensing revenue that piggybacked a 30% price hike. Though the company leans very heavily on its advertising efforts for revenue-generation, its data licensing business has been catapulted into the limelight. This is largely due to Apple Inc (NASDAQ:AAPL)’s Topsy acquisition. This is one of Twitter Inc (NYSE:TWTR)’s certified data sellers.

Today, the latter is a unique resource for trend-spotting and news and the market is choc-a-bloc with companies that might find the data on the site useful. The supplier power that the company holds over them is immense and it will steadily up its licensing even as a larger number of bidders with more muscle power enter the fray. While Twitter is swimming further into the data mining waters, FB has been neglecting the avenue and it seems like it just prefers to keep all its raw data to itself.

Adding Woman-Power


In separate news and a gender breakthrough, Twitter Inc (NYSE:TWTR) announced the appointment of Marjorie Scardino as the eighth board member of the all-white-male board (the company had drawn a great deal of flak for discrimination against women and minorities). And so, at least for now, it seems like Twitter Inc (NYSE:TWTR) is shedding some old skin , diversifying in its upper echelons of power , adding some power to its global presence and creating a U2opian world for itself.

About the Author :


Priti Desai  is an astute business writer who has been writing about stocks and business long enough to know that the best way to be in sync with the market is to sink oneself into its volatility and irrationality. She feels that understanding business ebbs and tides is about being able to see the flip-side. Every word she writes exemplifies her expertise and knowledge. Money is what makes the world spin while business is what adds momentum to it. Zeroing-in on an exclusive and sui-generis view is about panning the finance landscape and getting a 360° view. Connect with her on pdes17@gmail.com

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