Twitter Takes Flight: What Have They Figured Out?

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July 29 (Bloomberg) -- Debra Aho Williamson, a social media analyst at eMarketer, and Bloomberg's Paul Sweeney comment on Twitter's user growth and business strategy. They speak with Cory Johnson on "Taking Stock." (Source: Bloomberg)

Looking for something bad in these numbers, and i'm looking hard, and i do not see one.

This is a good quarter for twitter.

I think investors are getting a little bit of comfort that this is in fact going to be a good stock, a long-term growth story.

There was concern about user growth and engagement and what we saw was not only a beat on the topline and bottom-line, but it was coming from the fundamental key metrics like monthly active users, mobile users, and we're seeing them accelerate and keep the growth rate strong.

More importantly we saw the company put out some third-quarter guidance that was better than the industry was looking for and without some formal guidance for 2014 that was better than their original guidance.

When you look at the numbers that they reported today, and what you know about what it relates to engagement and advertising, what has twitter figured out?

Twitter has done a great job this toward -- quarter.

They are really taking flight.

I think that twitter has a lock on what you would call advertising in the moment, or real-time marketing.

A lot of marketers are very interested in figuring out how to reach people when they are in the moment.

For example, welch month watching the world cup game, when uruguay bit the year of the italian layer and all of these marketers jumped in and put in a tweet relating to that.

They want something to consistently do something like that, and that can be very powerful.

Another thing that has been powerful is the fact that marketers who are tv advertisers can use technology from twitter to sync up advertising on twitter that is timed to win their ads are carrying on television.

That gives them a good into the tv marketers and to the tv advertisers which is a huge business.

To today's numbers show us that twitter has figured out advertising on mobile, a problem that is vexing so many companies in the world of the internet?

Twitter is lucky, it was born mobile.

It was born as a mobile service and it is consistently a very strong performer in mobile advertising.

Facebook is also strong, everybody was worried about a few years ago.

Death int -- and doom, but they have figured it out.

For twitter, there's nowhere to go but up.

Twitter is very well-positioned to take advantage of that.

Bloomberg west, we do not like talking about stock prices, but this is taking stock.

After hours, there were people on twitter saying this was a short squeeze.

Short is actually very small.

This is not a short squeeze, we just looked that the numbers coming down, it is 7% or 8%. not a great short position here.

A lot of people wanted to own this stock, but it has been very volatile since the ipo.

Has pulled back 50% from its high so there are a lot of people who got burned in the stock.

The central question was, is people going to be a niche advertising medium, or is it going to be a mass advertising medium, and that is all driven by the metrics.

Our people being driven to twitter and staying there?

I think numbers we got from the second quarter and increased guidance for the year gives advertisers the censuses will be a bigger advertising story than we thought.

They much more interested in the business.

$1.60 per user, which was the revenue user poor quarter doubled what it was last year.

Am i right to look at that and say that they must be contextualizing their ads better if they are getting such higher pay for ads?

They are.

At a gay love the social media that we talk about them it is all about and actualizing the ad.

You cannot put a banner ad up there, it will not work anymore.

Advertisers will not pay for commit is not appropriate for the type of a variance -- it is not appropriate for that type of experience.

We will see it in that revenue per user, we will continue to see strong growth.

Mobile is a huge part of it.

It is 81% of the revenue for twitter.

Highest among all the companies out there.

They seem to have figured out how to attract users and keep them engaged, that is what advertisers are looking for.

Are you agreeing that this is better than it was three or four months ago?

There were a lot of advertisers who specifically bought into twitter in the world cup.

They put a lot of marketing effort behind the world cup as well, to attract new users.

The proof in the pudding will be how they perform next quarter and fourth-quarter.

If they keep this momentum going and they attract advances at a strong rate -- advertisers and a strong rate.

I think those are probably deed above the -- two of the strong drivers.

What about the acquisitions they have done?

It seemed to be more about the machinery around placing ads.

Are we seeing the results of those?

Our people are throughout the business talking about this?

One of the key acquisitions was the acquisition that took place last year.

It helped by being a mobile ad network, enabling twitter to sell advertising and gain advertising revenue outside of the twitter service on mobile apps.

Mobile also has technology that twitter can use to make its own advertising better.

They also acquired a couple of other mobile companies as well recently.

I think one of the key points here is that twitter is, with these mobile acquisitions, they are focused on mobile targeting and mobile retargeting.

It is like inside baseball, cookies do not work on mobile devices, so they need a play to target people.

Showmen sopping online does not make a purpose, -- if someone

This text has been automatically generated. It may not be 100% accurate.

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