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Checklist highlights multiple yet
under-exploited opportunities
Web 2.0 Promises Twitter Offers Peer Revenue Model
Technology displacing
existing markets/create new Google Advertisement, subscription
markets
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Assertions on Twitter Business
Twitter does not represent any breakthrough in technology,
hence, thinking “product = technology” will go no where
Twitter product holds almost all promises of Web 2.0, thus
in a better position to exploit the revenue potential
The current Twitter fans are mostly early adopter and
should not be be counted exclusively as cash cow for
Twitter (think AOL subscribers)
With good product positioning, Twitter will be able to
displace existing market and create new ones, like Google
did
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(Re-)Defining Twitter’s Product
What is Twitter’s Product
140 byte text, user-created, delivered real-time, across all
technology platforms
Now think, what are the short text that currently generate
revenue
P2P classified – for sale (cars, electronics), services
Dating
Commercial classified – flyers, coupons
Personal SMS
Twitter is not a short-text provider – it is a short-text
marketplace
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Twitter offers new dimensions in
short-text marketplace
High desirability – Free or
Pay to Pull
breaking news,
Nominal Fee
gossip, exclusivity
Content Desirability
Low desirability –
marketing, Pay to Push Free
promotional,
narcissistic Area 3
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Customer Segmentation based on
Content Desirability and Time
Sensitivities
Avid high volume receivers for time Free for personal infrequent users
sensitive /exclusive content
• Value – receive unlimited exclusive
information real-time
• Product – a revenue sharing deal with content
generators
• Pricing – medium, comparable to monthly
Twitter
newspaper cost
Platform
Marketers with physical Average receivers with occasional
locations and Campaign Organizers demand for time sensitive
exclusive content
• Value – push time sensitive msg to target
Value – receive limited exclusive
demographic
information real-time
• Product – short msg with opted-in users Product – a revenue sharing deal with
• Pricing – high, fixed or variable content generators
Pricing – low, cost of a cup of coffee
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Case Example – Real-time Mall
Promotion
Customer: Westfield Mall Studio City LA
Promotional Message (to pre-opted in users):
For the next 30 minutes, anyone who shops at
Body Shop would get a 10% discount
Results: Increased store traffic by 30%, sales by
10%
Cost: (variable pricing) $50 (500 receivers)
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Revenue Potential – FY Run Rate, US Only
High Fixed or
Paid Information Pushers $1000 - $5000 $2,500 x 10, 000 = $25M
Variable
Frequently Info Pullers Medium Monthly $10,99 (-$5.99) $5 x 2,000, 000 = $10M
Occasional Info Pullers Nominal Monthly $3.99 (-$1.99) $2 x 4,000, 000 = $8M
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Five Q&As
Q: How do you kick start your plan?
A: By publishing a ranking to establish criteria for “desirability” of
the content immediately
Q: How do you differentiate the time sensitivity?
A: By implementing message delays incrementally for all unpaid
users till they notice it
Q: Where would you recruit the sales people?
A: From the newspaper sales team
Q: Will Facebook copy your model?
A: Yes, they might, but 140 byte would then become our core
advantage since it is lower cost
Q: How big will Twitter become?
A: The key is to provide a platform of self-generating marketplace,
think Craiglist 2.0, what is CL’s valuation?
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