Social media giant Twitter is expected to take in a staggering $1 billion from its initial public offering next month.
The future of mobility may very well be the company’s key as a publicly traded company. Three-quarters of all of Twitter users are mobile and 65 percent of the company’s revenues come from mobile ads, which was revealed in an SEC filing last week.
In Twitter’s filing, references to mobile are made at least 130 times, CNET noted. The number of mobile users on Twitter is up 66 percent from a year ago. The company attributes its mobile ad success to the introduction of its “Promoted Products” ad service for iOS and Android last February as well as its ability to use location to deliver targeted ad-based tweets.
Twitter values itself between $9.7 billion and $13 billion. While itdoubled its revenue to more than $254 million in the first half of the year, its net loss increased by 40 percent to $69 million, due to increased expenses.
“This filing sets the tone for the future of the tech market. Mobile is critical to success, and Twitter is well-positioned for growth, especially with MoPub,” said Sheryl Kingstone, Yankee Group research director. “Twitter, which already makes more money via mobile advertising than it does advertising on the desktop, will eventually provide real-time ad bidding capabilities into its own media platform. While Twitter is all about mobile, companies must pay attention to the actual dollar spend it accounts for only a small piece of the overall digital advertising spend. Yet, the future opportunity is still fantastic, considering the time consumers spend mobile browsing and using mobile apps is growing.”
Fellow social media giant Facebook’s IPO flopped last year but its stock price has steadily grown over the past few months.
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March 15 2019 @ 19:34:51 UTC