When Pinterest was included in Social Media few years back, things changed completely. Pinterest showed the best results in US, Canada and UK in quite a less time, through best turn around ratio (sales over investment). Was that due to multimedia? Is that an indication that Multimedia will take pinterest past Facebook soon? There are many reasons for above. However, some of the questions are good enough to answer why twitter is failing always. Only few know that twitter has seldom been in profit since 2004. Twitter renewed its tie up with Google recently and came up with some new features. In past, Twitter has not used various options available to earn. 90% of their profit comes from advertising. They also depend on text with limited words. One can say that the concept has limitations. Twitter though has complained that sites like Facebook are taking away their concept. In last fourth quarter of 2013, the loss was $511 million on $242 million of investment. This quarter, the loss has been reduced to $125 million when compared to revenue of $479 million. Hence, things are improving for Twitter. However, the worry is, they are still in loss. There are many reasons for their loss.
Some of the reasons for their loss are:
$1· Not using all options for earning profit like Facebook, Pinterest, and LinkedIn etc
$1· Government going against social media freedom
$1· Government blocking twitter like in China
$1· Twitter has already used up the masses interested in signing up for twitter
$1· Users in US, UK and Canada are looking for something new. Probably, they are looking for something new and that is why Instagram, Pinterest are becoming so popular. Facebook is also facing same problem
$1· Various local similar platforms are available in South korea (Kakao) Sien Weibo in China, LINE in Japan and they are becoming quite popular, which is a threat for twitter
$1· Twitter gets in its own way
$1· There is one more reason, that you might feel twitter started with Facebook though still It’s a reality that sites like Pinterest, Linked In are far ahead twitter. Twitter has a big journey ahead and right now, even the CEO of twitter is facing the resignation threats.
$1 Lots of outages, technical difficulties, infrastructure change, and human and software error are also some of the reasons for Twitter failure.
Twitter has lots of potential. The problem is some new concepts coming up and they are being implemented with better technologies. Twitters also have a threat from tech giants like Apple and Google. If they change the operating system settings or come up with some new operating system then twitter is going to face problems. Instagram has already surpassed it but twitter has a good number of users even now. The point is they have to learn from sites like Facebook, which covers more than 2/3rd of social media user. However, do you know one thing? Pinterest has beaten in profitability even Facebook according to one of the surveys. Hence, twitter can still make a good profit, even though they are behind other sites.
Promoted tweets, promoted accounts and promoted trends are some of the medium of Twitter earning until now. We need to explain the value of our promoted products to our advertisers and advertising agencies. Twitter feels that without that twitter is going to suffer from stagnating user base and decaying monetizing strategies. Twitter too sells its data though these are still in infancy face. Twitter is coming up with new features like money gusher, vine, six-second video features and another window to show native ads. Twitter is already with Nielson to come up with TV rating system. There is no revenue generated from this feature yet, but can be a great option in coming future, for twitter. Amplify is yet another options that helps TV advertisers to retarget viewers with promoted tweets. Hence, Things are not that bad for twitter as far as future is concerned, though, lots of effort is required in monetizing strategies and technology. They will also have to come up with new features so that other new concepts do not surpass them as Instagram and some other sites have done.