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Twitter Whisper

Twitter Whisper
 

Research Question: Can Twitter compete with Google and Facebook in the digital advertising market?

Companies Covered: Twitter, Google (GOOG), Facebook (FB)

Report Available: August 13, 2013

 

Blueshift’s initial research shows Twitter’s IPO projected for 2014 as it increases initiatives to offer a wide variety of options for advertisers, while competing with advertising giants Facebook and Google who have established their dominance in the market.

 

Observations

  1. Analysts and underwriters alike expect Twitter’s IPO will take place in 2014. Twitter is projected to make $605 million in revenue by the end of 2013 and $1.1 billion in 2014. In advance of a potential public offering, Twitter is in the process of completing its advertising business model.
  2. Twitter has a collection of various platforms for advertisers: promoted trends to spur conversations about topics, promoted tweets to target users by locations, interests, gender, and devices, and keyword targeting to select users based on elements in tweets. In recent months it has slowly rolled out video ads, which are embedded in tweets and reveal a small ad.
  3. Facebook and Google top the charts as the two most visited sites, with Facebook boasting 665 million active users each day. Facebook’s revenue from advertising increased 38% year-to-year. Total advertising revenues for Google increased 15% year-to-year to $12 billion in the second quarter of 2013.
  4. Blueshift’s July Facebook report revealed that Facebook Exchange remains Facebook’s best ad feature for advertisers, and most advertisers have continued to commit and add to Facebook Exchange budgets because of the ROI. Similar to Facebook Exchange, Twitter has started experimenting with tracking people’s web behavior to tailor ads with a few companies in the U.S.

 

Blueshift will gather data and issue a market research report from independent sources in the following areas: media buyers and planners, ad agency executives, search engine marketing firms, and analytics firms.

 

To see other ideas Blueshift Research is currently working on, please click here.