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Twitter Going IPO So What Does this Mean for Businesses?

With the recent news of Twitter filing for its initial public offering (IPO), this is a major step in the process of becoming a publicly traded company. For many of its investors, this is a long awaited payout of dollars that they have invested in the company. But what does the act of becoming a publicly traded company means for the many businesses that use Twitter for marketing?

The major change of going public typically means is that things like profitability in the short-term become a pressing matter.

With this in mind, Twitter has to sell in order to make money. It’s got two really valuable assets under its belt, one being Twitter, which has a large audience and advertising in such an audience of the ways it currently already makes money with promoted tweets for selected companies and brands. I think Twitter needs to make significant progress and changes to advertising offering to help hit the numbers. This could see Twitter following the same mechanism as Facebook with giving the users the option to promote their content to increase the reach. However they don’t want to over do the advertising as it may see users leave the network.

Another major asset that Twitter has is data, and plenty of data in the form of the Twitter stream. In my opinion TV advertisers and content producers need to pay attention, if they are already not doing so. Also marketers pay attention to it however keeping in mind user privacy. This may see companies paying a license fee to Twitter to access such information or to the audience.

The major benefit for businesses is that once a company becomes publicly traded, we are given insights into how it functions, how its core assets are performing, and operational information that affects investors’ ownership.

As businesses we’ll gain much further insight into how many people are actually using Twitter, how many paying customers it has, and what their guidance is for how they’ll increase profitability. This data will help businesses see how their social media strategies are having an impact on the network. Smarter Twitter marketing!

Image coutesy of hothardware.com

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