Twitter is betting big on mobile. The firm’s latest filings with the SEC not only show it expects to reap U.S.$1 billion from its initial public offering (IPO), but that its whole business depends on mobile, since 75 percent of its users are mobile and 65 percent of its revenues come from mobile ads.
Twitter’s 200-plus page filing references mobile no less than 130 times. Twitter also revealed its mobile users increased 66 percent from a year ago, and that it attributes its mobile ad success to the introduction of its “Promoted Products” ad service for iOS and Android last February and its ability to use location to deliver targeted ad-based tweets. The filings also reveal the company values itself somewhere between U.S.$9.7 billion and U.S.$13 billion, and that while it doubled revenue to more than U.S.$254 million in the first six months of this year, its net loss grew by 40 percent to U.S.$69 million due to increased expenses.
Yankee Group Research Director Sheryl Kingstone comments
“This filing sets the tone for the future of the tech market. Mobile is critical to success, and Twitter is well-positioned for growth, especially with MoPub
. Twitter, which already makes more money via mobile advertising than it does advertising on the desktop, will eventually provide real-time ad bidding capabilities into its own media platform. While Twitter is all about mobile, companies must pay attention to the actual dollar spend—it accounts for only a small piece of the overall digital advertising spend. Yet, the future opportunity is still fantastic, considering the time consumers spend mobile browsing and using mobile apps is growing.”