Twitter - Social Media Analysis

As Twitter's IPO date approaches the company will need to show investors what it can do to generate revenue moving forward. The company isn't profitable, which means it's going to need to introduce new business segments that help it generate more cash. One such change in the business model could be a new form of mobile ad sales, according to Financial Times.

The news outlet said Monday that Twitter is eyeing a new platform that would allow it to sell advertisements in other applications and on other sites, not just through Twitter, that could target specific users based on who and what they follow. As we understand it, that might mean that if you follow Dunkin' Donuts on Twitter, the social network could sell that information on a new ad network that could then present Dunkin' Donut ads to you in other apps or on other sites.

Twitter currently also generates revenue through sponsored tweets and promoted tweets, and it can target those based on a user's location and interests. That means the foundation for the potential ad platform already exists, the company will just need to sell potential advertisers on the value it can provide. That's where a company called MoPub comes in; Twitter acquired the ad network just last month, which means it basically just needs to implement its own user data with the network before it can move forward.