Twitter Inc (TWTR) Focusing On Revenue Outside The United States

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Twitter Inc (NYSE:TWTR), the micro blogging site, has doubled its international offices to around 15 over the past one year, deploying some of the most senior advertising managers to Europe and Asia to tap potential foreign market, says a report from FT. Twitter Inc (NYSE:TWTR) has three-fourths of its users outside the United States, but it just accounts for one-fourth of the company’s total revenue.

The potential offered by foreign markets was one of the main reasons encouraging investors to push the stock by 110% since the issue of IPO, last year.

Twitter partnering with advertising companies

According to Adam Bain, Twitter’s president of global revenue, the company is adopting an aggressive approach in talking to advertising companies globally, and building partnerships with them such as with foreign TV networks.

“The consumer product from close to day one was a global phenomenon,” he said. The executive added that now is the right time to penetrate into the international market as marketers “were thinking on a global scale.” He said that Twitter has a wide international opportunity, which is no secret.

Bain said that marketers are confident about Twitter’s capacity to discuss global campaigns and individual activations at a local level. Twitter is tapping every market with a high end service for big brands, and in the process, is planning to launch advertising down to self-serve platforms for small businesses.

Emerging economies more innovative

Twitter Inc (NYSE:TWTR) is also making more ground for MoPub, the mobile advertising exchange that it acquired last September. Bain said that Twitter and MoPub together offer marketers “engagement and scale.” Bain said that advertisers outside the United States are innovating and finding out new ways to use Twitter for advertising. He said that the most interesting innovations with high creativity are available outside the United States.

Bain gave reference of the 20th Century Fox advertising campaign for the 2012 film Prometheus, in the UK, and spoke highly of the campaign. Twitter users were enabled to tweet the reactions after the first ad break, which were collected by advertisers to create an ad for the second break.

Bain said that in Indonesia or in Saudi Arabia, Twitter Inc (NYSE:TWTR) has penetrated quite well into the market, and has been thriving there for so long that the notion of emerging nations not understanding the platform has become absurd.

Twitter’s international advertising revenue is expected to increase up to 32% in 2014, and would increase by two percentage points, in 2015 and 2016.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at [email protected]

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