Here we are, on the precipice of another moment that screams at us with a message that our once predictable world is now in a state of constant change.
Today, Twitter goes public, fueled by a debate that has raged on for weeks and months about whether this IPO will be more successful than Facebook’s (which ultimately worked out pretty well).
Let the pundits debate away. Twitter on Wall Street will be a huge hit.
How can we be sure of this outcome in a financial environment that is often uncertain, chaotic, and unpredictable?
It’s because Twitter has done the heavy lifting that puts it in a position to be a financial winner. Of course, that’s a lot different than how analysts are studying Chrysler’s IPO where the convenient, predictable metric of vehicle sales and profits will be the traditional driver that determines the stock prize.
In the case of Twitter, the big money isn’t there…yet. That’s because Twitter isn’t a traditional company with expected sales and growth patterns.
It’s a 21st century digital play, and that’s why it’s so different. After all, Twitter’s users double every year and their numbers are expected to reach the one billion milestone by 2015.
But Twitter’s value goes well beyond big boxcar (think “cume”) numbers.
That’s because it’s about the less tangible characteristics called engagement and impact.
As Gail Goodman, CEO of Constant Contact, recently told American Public Media’s Marketplace Tech, “Investors are more willing to bet on user engagement as a future indicator of monetization.”
When you think about some of the world’s most successful companies (and there are exceptions, of course), they combine reach with impact.
The really amazing companies connect with the masses and change lives.
Car companies like Ford have.
So did Kodak.
So have Apple, Amazon, and Google.
And of course, Facebook, which is why we drew the same conclusion when it went public last year.
And that’s why we see Twitter’s chances at success as so obvious and clear. The platform – so much different than Facebook’s – has changed the way we learn and find out about things. It has changed the way we access information. It has altered our thinking about who is influential and worth getting to know. It is changing the way we watch live television. It is doing a make-over on the coverage of – and participation in – real-time events.
All of the CNBC and Wall Street Journal charts and metrics can’t account for sheer engagement and the life-changing impact of a phenomenon like Twitter. Those of us who have lived on Twitter for the last several years share that same feeling.
So how the IPO will perform in the first few months is anybody’s guess.
How it will perform in the long haul seems far more certain.
I’m in.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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