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The 10 billion-dollar tweet

On November 7, the stock-ticker symbol “TWTR” is expected to scroll across the New York Stock Exchange, following completion of Twitter’s IPO on November 6. Current pricing plans announced by the social media company list a range of US$17-US$20 a share for the 70 million shares to be sold. This price establishes a valuation for the company at more than US$10 billion — not a bad stock-market debut for a 6-year-old!

Though the numbers are remarkable, Twitter is actually launching with a fraction of the valuation of Facebook (which famously came under fire for an initial share price considered too high). Twitter has toiled in the shadow of its larger social-media cousin, and its revenue certainly trails Facebook’s. Many analysts, though, are praising Twitter’s conservative approach in its initial valuation (which can still be raised prior to launch) and are also pointing to a range of potential new revenue sources for the company. 

Hotels and hotel brands would be wise to track Twitter’s flight and rekindle their romance with the social-media platform, including an exploration of advertising options. We’re working with a range of clients on Facebook ad campaigns, and many of those very same clients are closely watching Instagram’s gradual rollout of advertiser options. Pinterest’s new “promoted pins” program has drawn interest as well. Twitter ads? Not so much. 

Twitter’s emergence as a publicly traded company will focus its business on ad-revenue growth as never before. The platform has shown the ability to integrate promoted posts and promoted accounts without seriously dampening the user experience and is investing heavily in R&D on new ad options and new “organic” features. With 49 million monthly active users in the United States (as of Q2 2013), Twitter is a platform that somehow manages to be both ubiquitous and “fly under the radar” at the same time. 

What’s your take? Will you consider a Twitter advertising program in 2014 for your hotel or hotel brand?

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