Twitter Gearing Up for the New Move
Twitter has been on acquisition spree. The company added Clutch.io to its portfolio after buying social news startup Summify, blogging platform Posterous, email marketerRestEngine and Twitter client TweetDeck. These are all strategical steps to improve the user experience and support expansion. As a company that still lacks revenue, Twitter needs to prove it can grow faster than weed on your backyard.
Although the recent acquisition was interpreted as an acqui-hire by Techcrunch, the major questions is whether Twitter will use Clutch.io to start a new developer initiative or will the company use Clutch.io as IP enhancement.
Tech industry is wondering what Twitter’s next move will be. These strategical acquisitions are already hurting the limited resources but they might play a key role for establishing the long-term company business model and strategy.
Twitter claims its business is advertising. In this case, its rivals include Google, Facebook, and other large advertising firms. Twitter needs to continue with its disruptive innovation methodology to grow so that it can survive in this Darwinian world. There is always the option of another high multiple IPO as well.
Clutch.io builds tools for mobile application developers. Clutch tools helps developers overcome some common problems with mobile app development including A/B testing for mobile apps. Their two main products are A/B Testing, and the Clutch Framework. A/B testing is an effective ways of improving mobile app metrics.
1 comment:
Twitter is, at least in my opinion, one of the most important emerging ad companies. They are driving a pretty unique "cost per engagement" model, where, for certain campaigns, brands pay Twitter on a cost-per-follow and a cost-per-retweet basis. This means that Twitter brands only pay if there is a definable customer interaction.
The company did around $140 million in revenue last year, and should double this year.
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