September 16, 2013
Twitter has finally confirmed the rumours of a planned Initial Public Offering (IPO) – where shares of stock in a company are sold to the general public for the first time.
Twitter announced on Sept. 12 that it had filed a confidential S-1 in preparation for going public. The announcement read: “We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.” Twitter is using a new law, the Jobs Act, to keep the financial details of its plans secret for as long as possible.
According to Bloomberg, Twitter was valued last month at around $10.5 billion by GSV Capital Corp. The company has a solid financial story with consistent growth behind it and its recent acquisition of ad exchange MoPub means that it now operates a market for real-time bidding on advertising, not just on Twitter itself but throughout the advertising ecosystem. This will allow brands to optimise their advertising in real-time.
Twitter is also preparing more adjustments to its online and app experiences that will undoubtedly bring even more advertising revenue in.
From the consumer perspective, Twitter will become more saturated with ads, in a variety of formats, as the company seeks to maximize its revenue and ensure that it continues meeting its quarterly targets.
Barclays move to harnessing the mobile wallet
Today Barclays PingIt app users can update the app which now allows customers to easily pay on their mobile using a 5 digit code. ‘Pingit’s mobile shopping service, which connects to a user’s bank account, only requires users to input a five-digit code to approve a payment. After a shopper selects an item to buy within an app, they are given the option to pay via Pingit rather than in the traditional manner of entering their credit card details’. This will allow users to buy items they want really easily in app and on mobile web, making the user journey seamless.
This shows that the bank is leading the way in mobile wallet technology. It is predicted that Britain will become a cashless society, and with the UK being the biggest spender in online retail, this could come sooner than we think.
Plans are in place to start monetising Instagram, which was acquired by Facebook last year for a reported $750 million.
After announcing it had reached an impressive 150 million monthly active users earlier this week, a huge increase from the 30 million it boasted in April 2012 when Facebook first revealed it would be acquiring the site, bosses at Instagram have obviously decided the time it right to start making more of a profit out of the advert-free photo site.
Speaking to The Wall Street Journal last week, Instagram’s director of business operations, Emily White, discussed the very real possibility of introducing ads to the site in the not-too-distant future, saying: “We want to make money in the long term, but we don’t have any short-term pressure.”
Users have reacted badly to past attempts to commercialise the platform. In December, users were outraged when Instagram changed its terms of service to allow users’ photos to be used in advertisements. If Instagram manages to monetise the platform without altering the creative consumer experience it will present an excellent opportunity for brands looking to target young, social-networking audiences with their products.
SOMOnday Fun Fact
According to new research reported on the Telegraph ‘it takes an average of 224 Tweets, 163 text messages, 70 Facebook messages, 37 emails and 30 phone calls, for a couple to fall head over heels in love, according to new research’.