Rory Sutherland, UK’s leading ad man and Ogilvy & Mather’s Vice-Chairman believes that Twitter is a long term player and will be more valuable than Facebook in the long term as it has a ‘great deal of hidden revenue potential’. Rory who is credited with turning Microsoft into a major consumer brand in 80’s goes on to say that although Facebook might be the most popular social network at the moment, it could struggle to maintain that position in the future.
It is interesting to note that these comments come at a time when Facebook is gearing for its IPO and also about to touch the one billion user mark. Rory adds “I can see Facebook being superseded more easily than Twitter being superseded, as a forum for outbursts, Twitter’s [character] limit, its haiku element is very appealing. I wouldn’t bet against it being more valuable [than Facebook] in the long term“.
While Facebook is trying to hit Latin America to reach its 1 Billion target, Twitter has its own areas to hit on to. Twitter, as of March has crossed the 140m active user mark. It is widely used in metropolitan areas and is yet to make its mark in the smaller towns. This argument in favor of Twitter has also been made in the past because it has changed the way people share information. Twitter has been leading source of news generation and exchange across the globe, may it be about revolutions or may it be a live tweet-cast or match commentary. While Twitter is a live source of constant information it is easy to notice that the social network in itself has been driven by users and not the company.
Folks back at Twitter have woken up a bit late to monetize their assets. The biggest dilemma facing them is to how to make money from the network and how to make sense of the humongous amount of information that they have. They have of lately changed the look of the pages to make them more friendly and opened doors for promoted tweets which is a step in the right direction as far as monetization goes.