Twitter — A Neglected Rocketship 🚀

I’m following twitter from a long time and I want to jot my thoughts on what to expect in the future and how Wallstreet and people are sleeping on Twitter. Disclaimer: I am not a financial advisor, all the opinion are my own.

There’s more than just Ads:

Most of the people think that Twitter’s core business revolves around Ads which is partially true but there’s more to it. Twitter is an Influencer to Audience based platform where one can easily share their message to millions of followers.

  • Multiple channels for income: Licensing Data, Ad spending by Brands for brand discovery

Focus on R&D and launching new products:

  • Superfollows
  • Twitter Blue
  • Tipping
  • Spaces
  • Twitter Shops

Advice to tap on more than just Ads spend. We know that on twitter there are business of different sizes i.e large brand, small brands to even personal branding.

  • Twitter should focus on monetizing different channels like Spaces.

Spaces:

Twitter Spaces
  • It can serve as ticketed podcast where celebrities/brands can talk to their followers.
  • It can be used by several podcast host to use it as source of income where they can decide how to charge their audience based on different tier i.e free/low charges for only listeners, higher charges to people who can ask questions, higher charges for premium guests who can interact with panelists

Issues with Spaces:

  • Spaces seems to be ad-hoc and there is no mechanism as of now to get a hold of their repeated audience. Should there be a mechanism to target subscribers?
  • How can one notify/send reminders to scheduled twitter spaces?

Twitter Shops

  • Is a good way to advertise the product and set up a store but who is taking care of operations/logistics?
  • I am keen to see if Twitter wants to go that route or keep operations lean by setting these stores as redirection mechanism to Shopify/Amazon stores.
  • Personally, I would suggest to use the later option. Strategy: Twitter can charge a small %age for every conversion which happens through twitter shops. This is a win-win strategy for shopify/amazon and twitter where twitter is providing funnelling to these stores which will take care of operations at the same time twitter can keep the operations lean and work on targeting of these shops to mDAU

Tipping:

  • Tipping is a good way to eliminate the threats like Patreon. This feature can add some margin based on # of transactions.

Licensing Data:

Twitter API, Source:https://www.programmableweb.com/news/twitter-announces-new-api-and-establishes-api-development-roadmap/2020/08/14
  • This shouldn’t be ignored. I think it could be really huge segment for revenue if Twitter starts licensing data based on particular hastags to companies.
  • This segment will need more focus as it would need business development to create awareness and provide use cases to business and how can they utilize Twitter APIs for their business.
  • For example, one was highlighted in the Earning call’s report that Twitter partnered with S&P 500 for creating indexes based on sentiment analysis.
  • Above one is a good strategy but the use case needs evolve and should provide more value. For example: Several companies should subscribe to Twitter to pull data from twitter to improve their brand awareness and listen to customers.
  • This feature could be called as “Voice of customers”: Every business needs to be close to customers and constantly listen to their queries, problems and demands. Twitter can provide Voice of customers as a service. #VOCaaS
  • Realtime capabilities could be leveraged by Companies if they allocate particular #hastag to their customers. For example: #NikeCares where Nike can ask its customers to use this hashtag whenever they want to raise a complaint etc. And Nike can listen to this hashtag and pay Twitter for the access of this channel (hashtag) based on amount of data used.

Newsletter:

  • This feature could eliminate threats like substack which is used by authors/writers to write to their audience about different topics.
  • I think either Twitter should focus on R&D and create such a feature or acquire substack to accelerate the feature development.

Diving into Earning Calls Report:

Earning report highlights
  • Total revenue grew by 22% YOY for Q4
  • Average monetizable mDAU reached 217 million up by 12% YOY

It’s nice to capitalize on advertisement market and there is huge growth potential ahead as well but long term success of the company would depend on more than that i.e finding and executing new ways to monetize mDAU.

If you liked my analysis then you can follow me @gomrinal on Twitter, Github, Medium or Linkedin.

#SigningOff #SeeYouinNextDeepDive #Strategy #Product

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