Twitter Inc. (NYSE:TWTR) Is Creative Waves
“Twitter Inc. (NYSE:TWTR) is more successful in attracting teens compared to Facebook Inc. (NASDAQ:FB)” seems to be paying off for the stock as it surged over 10 percent in last to trading sessions. At its previous close of $45.62 the stock of Twitter Inc. is now trading just about 9 percent below its launch day high of $50.09. But teen attraction is not the only driver behind Twitter’s soaring stock prices. Among key drivers include its global expansion strategy and targeted ads through promotional tweets. An appointment of the first female board member is also making headlines for Twitter Inc. (NYSE:TWTR).
Twitter’s International Strategy
Twitter plans to increase its global penetration to make up the average revenue per international user at par with or at least closer to that of U.S. user. Presently the average revenue per U.S. user and international user is $2.17 and $0.30 per thousand timeline views, respectively.
Moreover J.P. Morgan estimates that Twitter Inc. (NYSE:TWTR)’s global market penetration is just about 9 percent as compared to its 22 percent U.S. market penetration.
Twitter Inc. is eyeing to increase penetration in both developing and developed worlds where it is not having much sign-ups and the company is tailoring its strategies accordingly. On the one side it is partnering with smaller regional telecommunications carriers in some Asian countries and allowing new users to tweet freely without it being counted against their data plan. In European counterparts, Twitter Inc. (NYSE:TWTR) has partnered with Deutsche Telekom AG (ADR) (OTCMKTS:DTEGY) to allow the users keep up with Twitter right from their home-screen.
Targeted Promotional Tweets
Twitter’s new targeted advertising will allow advertisers to target specific audiences with promotional tweets matching users’ recent search appetite. Like a travel enthusiast looking for reservations and surfing through couple of hotel websites could get similar promotional tweets with a travel deal. Those who don’t want to disturbed their Twitter experience with targeted ads could uncheck the promoted content box from their privacy settings.