Quantcast
Latest Stories

Twitter IPO marks end, beginning in social media era



AP FILE PHOTO

WASHINGTON – Is Twitter’s stock offering the end of the social media era, or just the beginning?

While Twitter appears to have carved out its niche in the social Internet, a big question now is how much growth and innovation remains in the space.

Charlene Li at Altimeter Group sees a “last call” mentality around Twitter’s initial public offering (IPO).

“Twitter is the last of the Big Four to go public,” she said on her blog.

“In the social networking ecosystem, Twitter is seen as a must have in terms of a social strategy, and is the only major player left that is still up for grabs – YouTube (owned by Google), LinkedIn (IPO), and Facebook (IPO) are all spoken for. Other upstarts like Pinterest are just getting started so Twitter is going to be the talk of the town into 2014.”

Trip Chowdhry at Global Equities Research said Twitter may be the final social media IPO.

“The Twitter IPO symbolizes this industry is coming to an end, and future investments will be in some industry we don’t know,” he told AFP.

But others who watch social media say Twitter and others have just scratched the surface of the sector’s potential.

“We’re far from the end in innovation,” said Daniel Odio, an executive at the California-based Internet firm Share This, who has been involved in a number of technology startups.

“I believe we are in the Dark Ages of social, there is so much opportunity,” he added.

“The whole fabric of our existence is based on sharing, but digitally we haven’t really cracked the code. Facebook has done part of this, and Twitter has created the ability to find people who are not your friends but who share a common interest… that’s why Twitter is good at disrupting governments.”

A 2012 report by McKinsey Global Institute suggests social media is just getting started.

The report said social networking can increase productivity and “unlock value” to the tune of $900 billion to $1.3 trillion in key segments of the world economy.

This comes from “using social tools to enhance communications, knowledge sharing, and collaboration within and across enterprises,” the report said.

“While 72 percent of companies use social technologies in some way, very few are anywhere near to achieving the full potential benefit. In fact, the most powerful applications of social technologies in the global economy are largely untapped.”

Twitter claims to have more than 200 million active users, but some analysts say the figure is closer to 500 million and growing rapidly, as it becomes a key platform for celebrities, politicians, journalists and others.

The research firm eMarketer, for one, says Twitter is expected to earn $582.8 million in global ad revenue this year, and nearly $1 billion in 2014.

Twitter, which launched in 2006, opened the door to advertisers in 2010 by allowing marketers to insert paid “promoted tweets” into user feeds.

Olivier Toubia, a Columbia University business professor and co-author of a study on Twitter appearing in the journal Marketing Science, said Twitter is evolving as it becomes a mainstream outlet, similar in some ways to television.

“It becomes less valuable as a word of mouth and viral marketing tool, but more valuable as a media outlet,” Toubia told AFP.

“It becomes a way for companies to reach consumers, to broadcast content with lower barriers to entry.”

Toubia said that with Twitter’s success, “it has lost a bit of its grassroots flavor.”

But he maintained that “there is a lot more room for innovation” in social media.

“Facebook and Twitter have shown it is possible to connect people all over the world,” he said, but noted that “consumers cannot react with millions of people at the same time.”

“There are a lot of opportunities for smaller niche types of social media that will serve different needs that will connect people on a smaller scale in more meaningful ways,” he said.


Follow us on Facebook Follow on Twitter Follow on Twitter




Recent Stories:

F1 boss Bernie Ecclestone rejects bribery charges 1 min elapsed Big Chill freezes Cafe France to arrest skid 2 mins elapsed 25 cops ordered relieved over links to drugs 15 mins elapsed Bloodied shirt, unwashed fork: JPII relics abound 23 mins elapsed 4 airline passengers from northern Mindanao cleared of MERS 36 mins elapsed Pacquiao has to go through PBA Rookie draft 50 mins elapsed Guiao summoned by PBA for name-calling incident 59 mins elapsed Metro Pacific acquires stake in Victorias 1 hour elapsed
Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Business , IPO , Social Media , Stocks , technology , Twitter



Copyright © 2014,
.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement Advertisement
  1. Mark Caguioa lambasts Ginebra teammates on Twitter
  2. ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  3. No truth to viral no-visa ‘chronicles’
  4. Nokia to be named Microsoft Mobile
  5. Senator wants to probe PH slow Internet connection
  6. Bam Aquino becomes Master Splinter’s son after Wiki hack
  7. Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  8. New York police Twitter campaign backfires badly
  9. PH has slowest internet in Southeast Asia
  10. Did Deniece Cornejo lambast Vhong Navarro on social media?
  1. PH has slowest internet in Southeast Asia
  2. Mark Caguioa lambasts Ginebra teammates on Twitter
  3. Netizens seethe over Aquino’s ‘sacrifice’ message
  4. Did Deniece Cornejo lambast Vhong Navarro on social media?
  5. Senator wants to probe PH slow Internet connection
  6. Facebook rolls out ‘nearby friends’ feature
  7. Nasa’s moon-orbiting robot crashes down
  8. Judge in Apple v. Samsung patent trial fed up with smart phones in court
  9. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  10. Nokia to be named Microsoft Mobile
  1. #RejectedBbPilipinas2014Questions flood Twitter
  2. Did Deniece Cornejo lambast Vhong Navarro on social media?
  3. Netizens fall in love with Crimea prosecutor Natalia Poklonskaya
  4. Mommy Dionisia Pacquiao scores, takes over social media
  5. Nude and so dangerous
  6. Mommy Dionisia sings ‘Riking Bull,’sends netizens ablaze
  7. Russia tries to curb Crimean prosecutor’s Internet fame
  8. Memes flourish after Pacquiao victory
  9. PH has slowest internet in Southeast Asia
  10. Netizens thank Capa for Lee arrest

News

  • 25 cops ordered relieved over links to drugs
  • Bloodied shirt, unwashed fork: JPII relics abound
  • 4 airline passengers from northern Mindanao cleared of MERS
  • Drilon denies involvement in pork scam
  • Complex health care system for California’s elderly and poor explained
  • Sports

  • F1 boss Bernie Ecclestone rejects bribery charges
  • Big Chill freezes Cafe France to arrest skid
  • Pacquiao has to go through PBA Rookie draft
  • Guiao summoned by PBA for name-calling incident
  • Promoters Dela Hoya, Arum in talks for Pacquiao-Alvarez—report
  • Lifestyle

  • Gongs and southern dances star in a workshop at San Francisco Bayanihan Center
  • This woman ate what?
  • Photos explore dynamics of youths’ sexual identity
  • 12th Philippine Food Expo set at the World Trade Center
  • No tourist draw, Malang the croc will remain wild
  • Entertainment

  • Smithsonian wants photos, videos for ‘Day in the Life of Asian Pacific Americans’
  • What Garcia Marquez left behind
  • Has Ai Ai fallen deeply with ‘sireno?’
  • Sony developing live-action Barbie comedy
  • California court won’t review Jackson doctor case
  • Business

  • Metro Pacific acquires stake in Victorias
  • How ‘one percent’ economic elite was uncovered
  • Facebook profits triple as mobile soars
  • Insular Honors Sales Performers at Testimonial Rites
  • Apple increases stock buyback, will split stock
  • Technology

  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • Obama to visit Filipino soldiers in Fort Bonifacio
  • Fil-Am youth conferences unite under one theme
  • Embassy advisory: Filipinos still need visas to enter US
  • No travel restriction to Mideast, DFA clarifies
  • PH-HK relations repaired, but families of victims still being courted
  • Advertisement
    Marketplace