How much does Twitter cash on information selling?


08 October 2013

On Thursday popular social network Twitter announced in IPO the amount of money it cashes on information selling. The figure appeared to be 47, 5 mln USD. Constant data flow, the opinion and mood exchange created a giant commercial ecosystem which became a fruitful soil for creators of different products, retail huge companies and even Hollywood studios, hedge funds and other investors (potentially profitable spheres).

Economic effect coming from Twitter is much more widespread than it is stated in IPO. It was announced by Rob Bailey the Executive Director of the office located in London and dealing solely with the company analytics. For example the UNO with the help of algorithms taken from Twitter detects hot spots of social unrest. DirecTV DTV uses social network as early warning system and receives information about power setbacks (basing upon users complaints).

Company social direction causes the growth of industry which collects, analyses and spreads information to promote suitable companies and hold the client in the net. Though it is very hard to evaluate the social branch trade cost but one research company IDC thinks that this market “grew” 7 times quicker than IT sphere in the aggregate. And its market cost can be evaluated in 16, 9 billion USD (within 2 years).

Great number of companies uses information taken from social networks including Yahoo, Facebook and Instagram. But Twitter owing to constant data flow in real time appears to be an industrial giant. Twitter is used even in the Congress library. Twitter and Facebook are direct rivals. But Twitter is focused on public thoughts expression and Facebook – exchange of private messages between friends.

But no matter how Twitter is valued it is not yet the representative of all USA users. According to Pew Internet information ¾ of adolescent Americans make information exchanges in social networks. Generally Twitter users are young people (age to 30 years). The companies representatives say that it is too early to talk about Twitter benefit. The main risk factors are: the company growth can be broken by spammers, false accounts or the whole system crack. The social network representatives itself refused to comment it.

Besides not all the companies realize social networks benefits. Most of them prefer focus-groups and ordered monitoring of social media. It was announced by FleishmanHillard the public company which is specialized in crisis management sphere.

Twitter specialists are still in the process of finding solutions: “How to gain the maximum feedback”. Let’s notice that all social network rates were increased by 53% in comparison with the last year. Twitter influence spreads far above the boundaries of marketing and PR crisis. Nonprofit institutions, plain users and even politics consider social network information to be useful. Even Red Cross started to analyze Twitter data during the Sandy hurricane 2012 and MSM using “blab” on the website was forecasting the president electoral outcome in the USA.