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10.06.2013

Twitter IPO and Twitter message streams for market analytics: The real potential of Twitter for advertisers

Twitter, which filed for an public IPO with the US Securities and Exchange Commission back in June, that didn't become public before now in September, hopes to raise $1 billion with their public IPO. The SEC S-1 documents made public, stated that Twitter had $253,6 million in revenue for first half of 2013,  with net loss at 41 percent to $69.3 million and with some 215 million monthly active users.

The current and future revenue are said to come from three main ad-based sources:


  1. Promoted tweets that appears in users message feeds
  2. Promoted accounts (i.e. brands, companies, events etc) that appears on Twitter landing pages
  3. Promoted trends, where advertisers can buy their way into trending lists, themes and developments
The Twitter "ad media universe" is somewhat limited and the advertising tools available for advertisers might seem limited as well.  But with the Twitter IPO being a confidential or "secret" IPO available for sub $1 billion companies (in revenue), all the available or future ad channels for Twitter hasn't been highlighted. To me there's one obvious one that is clearly missing (though I haven't read the full S-1 documents), and that is the big data mining and analytics opportunities with Twitter tweets and message flows for consumer tracking, audience sentiment tracking and overall market trends.

The Twitter streaming APIs gives developers or Twitter log collectors, applications or apps "low latency access to Twitter's global stream of Tweet data", either collecting all Twitter messages in a continuous stream, collecting single-user message streams or site streams . 

With more than 500 million tweets a day through Twitter, this gives market analysts, advertisers, companies and Twitter itself of course, a unique view into
  • Trending themes and developments, i.e. new phenomena of all sorts, Internet memes, things going viral, movie or TV-shows releases, new consumer brands, pop stars, new albums, books etc
  • Long-term development and standing of brands, products, product models, consumer sentiments
  • Developing news and events
  • National and regional break-downs of trends, developments and long-term standing 
  • Cross-linked with mobile or PC access, client type, time of day, frequency of tweets or mentions etc
Utilizing Twitter message streams for near real-time market analysis and consumer views should be a no-brainer for advertisers, just as Netflix used their own data analytics to create House of Cards and other TV-shows - how long before advertisers catches on?

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