Twitter IPO: What Does This Mean To Retailers?

by / Thursday, 07 November 2013 / Published in Blog

This morning, Twitter’s stock opened at $45.10, or 73 percent above its IPO price, valuing Twitter at more than $31 billion. There has been tons of buzz and discussion about whether Twitter is being under or over-valued on the market. To me, the more interesting question is what value will Twitter have to retailers now that it has more capital?

Here are 3 key insights about how the Twitter IPO will affect retailers:

1) The first impact will actually be on the American consumer, not retailers

Twitter has a very small # of monthly users in the US compared to Facebook. So the most important immediate impact of the IPO will be getting it in the lingua franca of American life . The IPO will generate the buzz & interest Twitter needs to simply get more tweeters. More users will equal a more compelling reason for retailers to put a whole-hearted effort in this channel.

2) The worst mistake brands could make is to see this as simply a new ad delivery mechanism