Twitter continues to struggle financially. Its finances have deteriorated. Advertising has not gained momentum. Investors have expressed displeasure.
An acquisition is possible in the near term. Its demise is possible in the long term. It has already descended into the second-tier of social media networks. Some say it may fall into disuse. It wouldn’t the first time that a social media network has faded into obscurity.
The Advertising Challenge
Revenues declined on a year-over-year basis for the first time, dropping 8% to $548 million, Twitter announced in its latest earning report last week. The company warned that revenue could be weak over the next few quarters. Its underlying dilemma: Unlike other social media networks, it has, at least so far, failed incorporate advertising. The good news was that the paltry performance beat Wall Street’s low expectations, prompting its stock to jump 11% the day after the earnings report.
Its stock price only improved because expectations were so low any positive results could be construed as turnaround, comments investment researcher Gary Bourgeault in Seeking Alpha. No matter how optimists spin the earnings report, Twitter’s outlook is grim. While competitors increase revenues, Twitter has no obvious way out of its financial doldrums. Acquisition is likely but with just a minute faction of online advertising, it’s an unattractive prospect.
Amazon recently outbid Twitter to stream 10 Thursday night NFL games on the internet, highlighting Twitter’s struggles, Bourgeault asserts.
Would PR Miss Twitter?
If Twitter fades into disuse, many PR pros may miss the platform. Some may be happy to see it go. The open, fast-moving network can quickly transform a PR or marketing campaign into a PR crisis. “Personally, I feel like PR people might be happy when Twitter finally gives up its ghost or falls into disuse,” writes digital PR consultant Chris Abraham in a Business 2 Community article. “To many brands, Twitter is an uncontrollable firehose that can easily get away from you and turn from a promotional campaign to extreme crisis management.”
Communications experts urge PR to diversify into other social media platforms rather than holding all their eggs in the Twitter basket. “PR agencies are already doing an amazing job engaging on Instagram and Facebook — but I would focus my energy on Snapchat and YouTube stars as well,” Abraham says. Although essential for real-time communications, Twitter is no longer vital to PR or marketing.
The Streaming Video Option
Streaming video may be its salvation. Twitter will partner with Bloomberg to stream news programs around the clock, according to The Wall Street Journal. Programs will include curated videos and Bloomberg will produce programs specially for Twitter. The partners expect the streaming news to begin this autumn. Although live video could be a strong revenue stream, Twitter faces tough competition from the likes of Facebook, Snapchat and YouTube.
“It is going to be focused on the most important news for an intelligent audience around the globe and it’s going to be broader in focus than our existing network,” Bloomberg Media’s chief executive officer, Justin Smith, told the Journal.
Bottom Line: Twitter’s financial troubles put its long-term viability in doubt, some say. Twitter may not disappear immediately, but forward-thinking PR pros will diversify into other networks, remain flexible and keep their eyes on emerging developments.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
