Costolo: Twitter Platform Bigger Than App, Website

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April 30 (Bloomberg) -- Dick Costolo, CEO at Twitter, talks with Emily Chang about integration into the global culture, revenue verses user growth, how the company is working to enhance the user experience, the ability to generate mobile ad dollars, and their role in the inequality debate in San Francisco on Bloomberg Television’s “Market Makers.”


A lot of people are questioning today whether twitter can ever be mainstream.

You say it already is.

Why you go?

The reality is, twitter is in front of people around the world every day.

Constantly all over tv.

I was watching the adam silver announcement yesterday and there were three on air under his press conference the whole time.

A couple days after the oscars, over 3 billion views of tweets just about the oscars.

In print, on air, and mobile -- it is already embedded into the fabric of the culture of the world.

And that since i very much think of it as a mainstream platform and durable and lasting upon which we can build a great business.

The revenue story is incredible story.

Revenue per user is up.

Revenue for 1000 timeline views up 95%. investor analyst user in -- zeroing in on user growth.

Sequentially, why do you think there is a disconnect between what you see is a promise of twitter and wall street?

Has to do with your first comment about financial results.

We are delighted in the first quarter financial results, particularly around revenue acceleration on top of amazing fourth quarter.

That was delightful.

The dissonance between what is happening inside the company and expectations are.

I think when we talk today about an ipo, we have a lot of work to do.

We know what we need to do in service to taking the mainstream understanding of twitter as part of the culture of the world and helping those people understand the value of logging into twitter and getting the additional benefit of it.

He have a lot of work to do we have started on.

Starting to show great results in quarter one that needs to continue the rest of the year while building on the things we have done to make it easier to use and bridge the gap of awareness between twitter and engagement.

Do you think if you took the name twitter off their earnings report the results would be different?

The results are strong.

Why are they focusing on this one number?

I think it is incumbent upon me a ceo to help the world understand the value of their broader platform.

We have a platform with billions of views about an event in 48 hours when you look at other mainstream platforms, you could pick youtube again as an example where the bigger content views get billions of use over the course of a month.

We can get your advertisement in front of over one billion ios and android users today.

If you have a cell phone in your market, smart phone in your pocket and you fire it up today, more than likely you will see a twitter app.

It is incumbent upon us to articulate the story of how big the blotter -- broader form is.

Though you have made a lot of that form changes.

I like it, the ability to pin tweeps.

I am really liking it.

I was a little apprehensive.

What else can you do?

You have done so much, what else can you do?

The kinds of things you just described, making twitter more visually engaging, helping people see the most evil content on the page are the kinds of things you just described about the profile page, ringing that to the rest of the product, making it more visually engaging.

Ringing content forward, pushing the language of twitter.

Pushing that into the background.

Allowing users to mark tweets as highly significant and wanting to get them in front of other people.

So the kinds of changes we are already making that are showing great results, we need to thread goes through the rest of the year and hopefully we will see continued great result.

How much product experimentation are you doing on a daily basis?

How much do you guys actually play around with?

In our latest android app there are well over 100 experiments running in each of those.

So hundreds.

The beauty of the framework we have worked on on the past 18-24 months is the speed for which it allows us to run more and more experiments and quickly take data from the experiments we can compare to a control group and then understand whether it is working or not.

The faster we can move on those kinds of things, the faster we can execute changes.

You have high-yield biannual -- how your day annual grass from google.

-- hired daniel glass.

Daniel will work with me on consumer product annual run consumer product.

He was director of product for google maps.

A great consumer, what everyone would agree is a wonderful consumer product.

And he has been the ceo of a startup, so i love the entrepreneurial spirit he will be able to amplify that already exist.

I think what you will see is daniel coming in and working to really implement the product strategy we have very laid out, and also bring the entrepreneurial spirit to the team and probably come up with a bunch of his own ideas that we will let him run with.

Lex a lot of twitter is the one-way communication.

To be fully engaged, you have to tweet.

The majority of active users tweet.

There have been strange third party reports that have gone that wrong.

We continue to grow.

We added 14 million net new users in the fourth quarter.

It will likely be the case more of the users will come to the platform and be just consumers.

That is fine.

We make notes of ancient roman active user perspective for whether someone does or does not have to be an active user.

It makes no difference to them whether they are consumers or consumers and producers.

I have heard you call twitter the global town square.

Yesterday you called it the companion experience for what is happening in your world.

Others have said it is more like a democratized newswire.

Does it matter?

The thing i really like about the companion experience for what is happening in your world, it articulate -- it continually articulate for the design team what they should and should not be building in regard to the vision for the product.

While i love the metaphor of the global town square and the visuals it creates for people in the metaphor it creates for people, i do not think it is as good as informing the product and design team what they should hold for the user.

I think it is the companion experience to what is happening in your world is a more crisp definition.

Messaging apps are really hot right now.

I would like to never have dm they'll never again in my life.

What do you mean by that am a what that would look like for twitter?

When i talk about direct messaging in the twitter application and the work inc.

Done to improve it, there are frequently public conversations on twitter and it is an entirely public conversation.

Real-time for what it's happening right now and frequently public conversation she would like to take hold of and taken to whisper mode with a friend.

Look what has happened, what do you think about this?

Being able to move fluidly between the public conversation and private conversation is something we will make simpler.

In terms of the bigger picture him a window class of 2013 tech stocks are being revalued.

Some of them fairly radically.

How much do you pay attention to what is going on in the markets environment?

How much pressure do you feel?

I would say the market environment is always in my periphery.

We have a very specific way of thinking about the long-term plan for the company, and it is about balancing investment and growth, and operating leverage and efficiency and making sure we are improving margins and ever-increasing drive toward profitability balanced against reinvesting and growth.

That combination of growth am operating efficiency and leverage is the way i think about how we will build the business and company, while always of paying attention to the market landscape.

Launching a mobile advertisement network.

Getting into video advertisements.

How does this impair to twitter's offering?

Our mobile ad exchange.

The differences are we are already in the market with thousands of mobile app.

Over one billion ios and android users.

If you are an advertiser and want to reach people on their smartphones today, you can come to us and we can get your advertisement for over one billion users today.

There has been questioned about social media and tv and whether or not it has been a game changer.

Twitter adding a bigger and bigger piece of the twitter advertisement high because the argument is people tweet about the shows they are watching and that drives viewership.

You now have an nbc executive telling " the financial times" social media is not driving viewership.

How do you make sense of that?

Is there a shade of gray their?

When we developed the twitter experience it is because we had a variety of data we saw that helped us to understand there was complementary to waive relationship between twitter and tv.

By two way i mean not only did twitter drive the data but also tv was complementary to twitter and drove attention to twitter.

As we have invested in the strategy vomit there has been an ever increasing and continuing drumbeat of independent third hardy research, -- third-party research that has reinforced and validated the complementry two-way relationship.

The nielsen study even saying there are three things correlated with the tv ratings, prior year years rating for the show, ad spend and twitter.

So that reinforcement have seen in the market from the third hardy and the additional and continued investment like nbc and new partners has told us we are on the right track.

Next the buzz is way more than just buzz?

We think so.

Facebook and google making big that's what that's are you making in the future?

What gets a mention are excited to work for twitter today?

We are strengthening our core product and externally focused on strengthening our core product which is twitter and vine.

Most of the acquisitions we made to date are about strengthening the core and most of the work we are doing in product is about strengthening our core and that will continue to be our focus in the near-term.

There is a lot of heat in the inequality debate has been directed at twitter.

How much are you thinking about that and what can twittered to from a philanthropic perspective given the uniqueness of the platform?

Twitter started in the city.

We have been a company that has been in the city since we were created.

So many of our employees live in the city.

It is super important to us.

We focus on it significantly and we spend a lot of time in the company talking about it at our meetings and we have some very explicit direct connections with the community groups in the neighborhoods in which we operate.

We've got some really exciting announcements coming up about those relationships with these specific community groups that we are working directly within the neighborhood where we work and live.

I am looking forward to being able to talk more about those in the almost immediate future.

Thanks so much for stopping by.

Back to you in new york.

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


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