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Is Twitter Pursuing the Wrong Business Model?


Is Twitter Pursuing the Wrong Business Model?

Twitter on iphone 5sIt has been over a year since Twitter (NYSE:TWTR) went public and many of its investors are still waiting for it to capture some of the same success as Facebook (NASDAQ:FB). Sadly, these investors will be waiting a long time. Twitter is simply too different from Facebook to expect the success of the latter to rub off on the former. Facebook is not a simple platform or website destination. Instead, it is a series of tools that draw value from and adds value to social interaction and influence sharing. Facebook, it seems, has been engineered from the ground up to enable third-parties to plugin social functionality to external pages and web properties. Also, its facebook fan page system offers solid corporate opportunities for gathering customer feedback, engaging customers, and reputation management.
Twitter is primarily an influence marketing tool and notification device. You send out a tweet, your followers get it. If they choose, they can retweet and even more people can get your message. This is the same exact way Facebook’s timeline content sharing works. This is the only major feature the two platforms share. Sadly, Twitter’s officers seem to be fixated in adopting as much of Facebook’s revenue initiatives as possible. Since Facebook is focused on monetizing page views, then surely this is the way to go for Twitter, right? Absolutely wrong. Instead, Twitter should focus on positioning itself as a business-to-business company with a heavy consumer front end.
Given Twitter’s real time data sensitivity and its wide reach among some of the world’s most influential media and non-media personalities, Twitter’s data intelligence is priceless. Twitter can sell big data analytics, commercial messaging testing, and otherwise make money off its ability to track consumer behavior in grand terms. Since the focus here is on macrolevel consumer intelligence with no personally identifiable information, there are no privacy issues. The fact that Twitter isn’t focusing on this aggressively and cranking out enterprise-centered media marketing assistance services just shows you how out of touch Twitter’s management is. Sadly, they only have so much time left until all that stock-based ‘magic money’ disappears.


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