Dick Costolo: Twitter unfollows the leader as social milestones are missed

Welcome back, @jack !!

The news yesterday that Twitter CEO Dick Costolo is stepping down from that leadership role next month has attracted widespread commentary and opinion, not least on Twitter itself.

There’s credible opinions that Costolo is going because he hasn’t evolved Twitter as many observers and critics expected or believe he should have. Indeed, the stock market greeted yesterday’s announcement with a 10 percent rise in Twitter’s share price at one point.

An analysis in the Guardian today – you can read the full story below – is a pretty good assessment of a real predicament confronting Twitter, not only from an investor’s perspective but also from that of users and marketers.

[…] Twitter accounts for 1.6% of the critical US digital advertising market – a market worth $50.73bn – compared with Facebook’s 7.6%. Twitter accounts for 3.6% of US mobile internet ads to Facebook’s 18.5%. And in mobile display ads Twitter has a 7% market share compared to 36.7% for Facebook, according to eMarketer.

On user numbers alone – Twitter has 302m monthly active users to Facebook’s 1.44bn – the share of ad market doesn’t seem so surprising. Yet it’s the slowing down of growth that has concerned investors: Twitter’s monthly active user numbers have fallen 30% from 2013 to 2015, and by 2019 growth – a critical indicator of future potential revenues – is heading for a slowdown to 6%.

Yet there’s a more fundamental element that needs attention – what is Twitter?

[…] who is Twitter for? How does it distinguish itself against Facebook? And how can it expand its service while remaining simple and accessible?

Those questions aren’t new at all. Even though how Twitter itself talks about what Twitter is has become more clear in the past year or so, is it how users, marketers, etc, see Twitter?

Our mission: To give everyone the power to create and share ideas and information instantly, without barriers.

I’m not so sure. As a Twitter user since 2006, I’m often asking that question myself even though I’m more than happy to continue my thinking out loud and occasional engagement with others on the platform. I don’t have massive personal expectations of Twitter beyond the implicit simplicity behind that mission statement (but I have a different view if I put on my marketer’s hat).

Yet maybe Twitter’s not entirely sure about that either – the mission statement is slightly different on Twitter’s investor relations page.

Twitter strives to give everyone the power to create and share ideas and information instantly, without barriers.

Maybe change is afoot already: Twitter also announced yesterday that the 140-character limit on direct messages will be changed to a whopping 10,000 characters. Note this is for DMs only – the 140-character limit for regular tweets remains. For now, at least.

While that news will be appealing to many who will relish the opportunity of penning short stories to DM to their friends, I fear it also opens the door to push marketing – whether you like it or not – on a grand scale.

In any case, might Costolo’s departure herald a pivot of sorts in Twitter’s next steps with the (re)appointment of Twitter co-founder Jack Dorsey as interim CEO while Twitter starts a search for a permanent replacement?

There are all sorts of opinions about that.

[The Guardian report below is published here with permission via the Guardian News Feed plugin for WordPress.]


Powered by Guardian.co.ukThis article titled “Dick Costolo: Twitter unfollows the leader as social milestones are missed” was written by Jemima Kiss, for theguardian.com on Friday 12th June 2015 09.41 Europe/London

It says something about the extraordinary scale of social platforms when a technology behemoth with 302m active users every month can be seen as failing to achieve its potential. Yet that is exactly why it appears that Twitter’s chief executive, Dick Costolo, now has to go from the company’s top post.

In after-hours trading following the sudden announcement on Thursday, Twitter stock briefly fluttered up 8% higher. It was a reflection of the uneasy feelings from investors towards a man who fell under their increased and ultimately poisonous scrutiny as he navigated the social networking firm through its public offering in November 2013, having been CEO since he took over from Evan Williams in October 2010.

Despite being a very different product serving a very different audience, Twitter is often compared to Facebook – and often unfavourably. Therein lies an identity crisis of sorts.

For Twitter’s investors the concern was less about user numbers than the growth and aggressiveness of the company’s online advertising. While Costolo was popular with many staffers for bringing structure and co-ordination to a chaotic young company, and took it to a market capitalisation of .4bn, he also oversaw the process of risk and uncertainty in pushing towards a brand new space.

Costolo and Jack Dorsey, who now takes over as interim CEO, have both insisted that the move was not connected to Twitter’s recent financial results – which saw those user numbers grow just 4.86% – so much as a decision made purely by Costolo himself, as a capstone to discussions that had been going on since last autumn.

Right now Twitter is in danger of becoming a niche product: it is beloved by journalists (guilty) and marketers, yet viewed with confusion by mainstream consumers.

Where the selective friendship groups of Facebook make sense (to varying degrees), Twitter’s public face can be more intimidating. On the other hand, the 140-character simplicity of Twitter’s platform and the potential to be the “civic square” of popular debate offers just as much value and, usually, less flatulent conversations.

In an era of endless feeds and the digital burden of email and obligatory posts from friends, Twitter’s brevity and ambience is a welcome change; what you miss is just missed – not mourned, nor added to a tedious, ever-increasing pile like email.

But in focusing its business Twitter has made some strategic decisions, such as closing off access to selected third parties – Instagram at one point, Meerkat at another, and earlier to a wider stream of third-party developers. Twitter was under pressure to protect its valuable audience and its scale, and in doing so cut off the community that helped it grow.

All of which left many users and especially those investors wondering: who is Twitter for? How does it distinguish itself against Facebook? And how can it expand its service while remaining simple and accessible?

Twitter accounts for 1.6% of the critical US digital advertising market – a market worth .73bn – compared with Facebook’s 7.6%. Twitter accounts for 3.6% of US mobile internet ads to Facebook’s 18.5%. And in mobile display ads Twitter has a 7% market share compared to 36.7% for Facebook, according to eMarketer.

On user numbers alone – Twitter has 302m monthly active users to Facebook’s 1.44bn – the share of ad market doesn’t seem so surprising. Yet it’s the slowing down of growth that has concerned investors: Twitter’s monthly active user numbers have fallen 30% from 2013 to 2015, and by 2019 growth – a critical indicator of future potential revenues – is heading for a slowdown to 6%.

For a young public company those numbers are sounding more and more like a death knell. For investors, Twitter’s plans – and Costolo carried the can for this – have not confidently set out its future. Chris Sacca, a major investor, wrote an insightful essay on the company’s challenges: “Twitter has failed to meet its own stated user growth expectations and has not been able to take advantage of the massive number of users who have signed up for accounts and then not come back. Shortcomings in the direct response advertising category have resulted in the company coming in below the financial community’s quarterly estimates.

“In the wake of this Twitter’s efforts to convince the investing community of the opportunity ahead fell flat. Consequently the stock is trading near a six-month low, well below its IPO closing day price, and the company is suffering through a seemingly endless negative press cycle.”

But he says Twitter “has boldness in its bones” and that it can improve by making the service easier for new users, more supportive for users intimidated by the site, and by making it feel less lonely.

guardian.co.uk © Guardian News & Media Limited 2010

Published via the Guardian News Feed plugin for WordPress.

A new platform for a new network: the FIR Podcast Network is live

FIR Podcast Network

When we introduced For Immediate Release on January 3, 2005, we had no idea we’d still be podcasting more than a decade later. We didn’t know what the state of podcasting would be, that the scope of FIR would expand, or that podcast networks would be a thing.

When we started, we just needed a website for show notes and a home for our audio files.

Ten years later, we’re still here, with exactly the same website we started with. While our website hasn’t changed, though, everything else has. FIR is evolving into a podcast network, already home to The Hobson & Holtz Report along with the five podcasts we have spun off: Interviews, Book Reviews, FIR Live, FIR Cuts, and Speakers & Speeches.

We are also already the home to 13 other communications-focused podcasts. We have shows that report on communication disciplines (such as FIR B2B and All Things IC), skills (like TV, FIR On Strategy and FIR On Technology), channels (like Linked Conversations and TV@Work) and verticals (like Higher Education).

All this made it clear to us that the website we launched 10 years ago to host one podcast was woefully inadequate. For well over a year now, we’ve been working to develop a new site. Our goals were simple enough: Offer a site that reflects the current state of podcasting and that makes it easy for people to find, subscribe to, and engage with any of FIR’s shows, on whatever device they use; and provide our podcasters with a powerful platform that’s easy for them to use and publish their shows.

Thanks to the hard work of some highly valued and talented volunteers, we have a new site that delivers on those goals. (We would be remiss if we didn’t point out that these volunteers are also part of the FIR listener community.) Sallie Goetsch (rhymes with “sketch”) – a knowledgeable and skilled WordPress developer through her WP FanGirl business – performed the lion’s share of the work required to create the site, while the good folks at Effective Edge Communications handled the design of the artwork for the FIR Podcast Network’s identity, along with all the great cover art associated with each show.

The new site at our new domain, www.firpodcastnetwork.com, should make it easier for you to find, follow, and interact with the podcasts that interest you. You’ll also have an easier time learning about show hosts as well as our sponsors. (If you’re in search of older episodes, you can still access the old FIR site at its new URL, www.firpodcastarchives.com.)

We’re launching the new site on the WordPress platform, recognizing the compelling advantages of a content management system that powers more than 60 million websites worldwide.

The new site is just the first step in a series of evolutionary changes to FIR. We’ll announce each of these when we’re ready; but we can anticipate at least one of your questions, and yes, we will have more new podcasts joining the network.

In the meantime, please enjoy all the great content the FIR Podcast Network has to offer you. Your participation as a member of the FIR community means the world to us, and we plan to do everything we can to deliver consistently high-quality content that entertains you, excites you, inspires you, and helps you stay on top of the ever-shifting sands of the communication environment.

We welcome your feedback and comments.

(Cross-posted from the FIR Podcast Network blog.)

The shape of movies to come

The Interview

So The Interview got its public showing on Christmas Day in the United States in spite of hacks on Sony Pictures’ computer systems, angry denials by the North Koreans that they were behind the hacks, and intervention by the US President.

The political comedy film stars Seth Rogen and James Franco as journalists who secure an interview with North Korean leader Kim Jong-un (played by Randall Park), and who are then recruited by the CIA and instructed to assassinate him.

In what would have been a farce if the situation hadn’t been so serious, the North Koreans accused the US government of state-sponsored terrorism and said the release of the movie would be an act of war. There were also dire threats by shady online groups during the past few weeks to kill cinema-goers if Sony Pictures did release the R-rated movie.

Well, release it they did in spite of announcing a clear intent in the previous week not to release it at all.

Much of the media reporting I’ve seen focuses on the cinema release – The Interview was showing at 320+ independent cinemas across the United States starting on Christmas Day, with box office takings to date reportedly around $2.8 million.

Yet what I found far more interesting were the other distribution methods Sony Pictures employed to make the movie more widely available. This is how Sony announced the movie’s public availability:

Fans can watch The Interview on several platforms including:

Google Play: the movie is available to buy or rent at play.google.com, and can be watched in the Play Movies & TV app on Android and iOS phones or tablets, or streamed in the living room via Chromecast, Roku or the Nexus Player.

YouTube: the movie is available at youtube.com/movies and can be watched on the web, in the YouTube app, or on select living room devices like Chromecast, Apple TV, PlayStation and Xbox.

Microsoft’s Xbox Video: the movie is available to buy or rent on the Xbox Video app on Xbox One, Xbox 360, Windows 8, Windows Phone 8 and XboxVideo.com.

SeetheInterview.com: In addition, The Interview is available at the dedicated website www.seetheinterview.com, which is sponsored by Sony Pictures and powered by Kernel and with payments through Stripe, a secure payment platform.

In addition to Google Play, YouTube, Microsoft and www.seetheinterview.com, The Interview is also being released in more than 300 United States theaters on December 25th.

It struck me straightaway that digital and online are front and center in the distribution infrastructure, with the physical (cinema) release very much the supporting act. And, releasing a movie this way – enabling people to access and view it through online rental or purchase – is the first time a major studio has done that on the same day of its cinema release.

Although the US box office has produced the lion’s share of viewing sales so far, it’s being speculated that revenues from the movie on the various digital platforms could potentially make this method likelier for movie distribution in the future, if not for the specific reasons surrounding The Interview.

And let’s not forget one thing – all of this is available only in the United States (of course there are workarounds if you’re outside the US) and it’s an R-rated movie, restricting the audience potential in cinemas at least.

It’s a big hit with content pirates, too.

In any case, could this be a clear signal on what we are likely to see in future for movie releases, whether by big studios or indie producers? I’d say it’s a sure bet that digital and online will play a much more prominent role if not the leading role in future.

Imagine – you want to watch the latest Hollywood film on your 50+-inch Ultra HD TV in the comfort and privacy of home? You have many choices of the delivery methods (see above). Then imagine services like Netflix joining the streaming distribution party.

Or, you want the IMAX or other big-screen experience with the popcorn and cokes? Head to your nearest multiplex with its digital audio-visual immersion.

And all the choices happen at once – no more staggered releases.

Traditional mainstream movie distribution and marketing focused only on the cinema and subsequent Blu-ray/DVD sales just got turned on its head.

Finally, what about the PR surrounding The Interview? There’s been commentary and opinion galore over recent months suggesting the whole thing is just a huge PR stunt, with others offering opinion to explain why it couldn’t possibly be a PR stunt.

How long?

Whether it was or not, one thing is sure – Sony Pictures has gained publicity for a movie that has been panned by critics yet looks very likely to receive widespread attention as a result of all the publicity about it (and the bigger picture about the extensive hacking of Sony Pictures that extends beyond The Interview).

Will I watch The Interview when it’s available here in the UK? Probably, just to see for myself what all the fuss is about. And especially if I can stream it to my TV or computer rather than go to the cinema.

Good PR result.

[Update Dec 29:] The Interview has managed to rake in $15 million since its online debut on Christmas Day, reports Mashable:

“Through Saturday, December 27, including all of its online distribution platforms, The Interview has been rented or purchased online more than 2 million times,” read a statement from Sony Pictures. “Total consumer spending through Saturday for The Interview online is over $15 million.”

“[A]fter only four days, The Interview already ranks as Sony Pictures #1 online film of all time,” read the statement from Sony Pictures.

Recode reports that Apple has now joined the ranks of distributors:

It took Apple a few days, but it’s joining the club: Starting [Sunday December 28], iTunes users in the U.S. and Canada can rent and purchase “The Interview,” Sony’s controversial comedy.

The movie became available at Apple’s store at 1 pm ET [Sunday].

The Interview was a huge online success, says Quartz – but for Google rather than for Sony:

Sony’s big internet video gamble seems to have paid off: The Interview, which the company offered for online rental and purchase on Christmas Eve, earned more than $15 million during its first four days on the internet. The film was rented or purchased more than 2 million times from Dec. 24-27, making it the studio’s most successful online release ever, while also grossing an additional $2.85 million from 331 independent North American theaters over the four-day holiday weekend.

[…] The film’s online success might be a qualified moral victory for Sony, but it definitely won’t be a financial one—and that’s even before calculating the significant financial fallout from the hacking scandal, which could be as much as $100 million.

Instead, the biggest winners from the weekend are the internet outlets that first streamed The Interview in North America. Google’s two sites—Google Play and YouTube Movies—were responsible for the bulk of sales, and Google also benefitted from exposing its platforms to consumers who regularly choose iTunes, or other VOD platforms that did not carry the film.

Undoubtedly further analysis will come in the following days.

Movie marketing with imagination comes to LinkedIn with Taken 3

Taken 3 LinkedIn

Promoting a new movie across the social web nowadays is an integral part of most movie marketing as the film studios and distributors try to get their movie of the moment talked up and shared online. The ultimate goal is more ticket sales and great viewing numbers at the cinema.

There’s also the subsequent revenue and brand opportunities with merchandising and streaming/sales of digital and disc versions of the film once the cinema run is over.

Buzz-building across the social web as an integral part of executing on the marketing plan can have a powerful effect over the long term.

Facebook, YouTube and Twitter are the typical mainstays of such activity. A social network that wouldn’t naturally spring to mind when you think of consumer movie marketing is LinkedIn.

Yet, why not if you have the right movie with the right messaging and marketing well suited to a business network?

That’s what 20th Century Fox is doing with Taken 3, the final episode in the action movie trilogy starring Liam Neesen that hits cinemas worldwide in January 2015.

Watch this video and see Neeson himself explaining what LinkedIn has to do with this…

What it boils down to is a contest – follow the Taken 3 LinkedIn showcase page, make sure the Skills section of your own profile highlights “your particular set of skills,” and wait and see if you’ve won the prize.

If you’ve watched previous Taken movies, you’ll know that the Neeson character sets great store on a “particular set of skills.”

The prize includes Liam Neeson in his Bryan Mills character endorsing “your particular set of skills” on LinkedIn, recording a video of him doing so. Specifically:

A custom video including Liam Neeson that includes elements of the Grand Prize winner’s LinkedIn profile information and the user’s skills as listed in their LinkedIn Skills section. This video will be shared with the user and will be posted to 20th Century Fox-owned or managed social channels, which may include: LinkedIn, YouTube, Facebook, Twitter and/or other websites.

That video will undoubtedly form a further element of the movie marketing leading up to the film’s opening in cinemas in the US on January 8 (and here’s the spoiler – the contest is open only to US residents). And of course, raise the profile of the contest winner across the social web.

It demonstrates some great imagination to make use of a primary business social network in a way that’s bound to attract quite some attention (including people writing blog posts about it like this one).

But get cracking – the contest closes at a minute to midnight US Pacific time on December 23.

(Via Entrepreneur.com)

Marking eight years of Twitter

Signing up for TwitterI remember when I first started hearing about Twitter, in the summer of 2006 less than six months after the service started earlier that year.

As the year progressed, the name kept popping up in blog posts and comments – what social media was, really, back then – until I decided to see for myself what this thing was all about.

And so, today marks my eighth #Twitterversary – eight years ago on this day, I signed up with the handle of @jangles. My Twitter ID number is 47973. (Did you know every Twitter handle has a corresponding ID number?) I’m still not sure if that number has any significance that makes it generally interesting.

For instance, does it signify that I was the 47,973rd person to sign up on Twitter? It sounds like it could be, given the numbers in 2006, growth since then (especially since 2010) and compare that to today with over 284 million monthly active users worldwide. But I don’t know, and it doesn’t really matter.

twitteractives

Incidentally, I often get asked what my Twitter handle means or where it came from. It’s actually the first part of the name of my avatar in the virtual world of Second Life, a place I was spending a lot of time in during 2006.

In any case, over the past eight years, Twitter’s analytics tell me that I’ve created almost 76,000 tweets. In averages, that works out at…

  • 9,500 per year
  • 792 per month
  • 26 per day
  • Just over one per hour (make that 3 per hour if we look at an 8-hour workday)

Are such metrics what Twitter’s about? Isn’t it more about the people you connect with? Well, according to Twitter, I have…

…so I suppose it is about that (assuming at least 50 percent of followers are not bots) as this chart suggests.

Engagements

Yet what is Twitter, really? Is it…

  • A social network
  • A tool for writing very short posts
  • A place to connect and engage with others online and chat
  • A useful means of sharing links to content of mutual interest or potential interest
  • A way to talk out loud and share your thoughts with the world wherever you are at any time
  • A channel for anyone to broadcast messages about anything and everything
  • Another channel for marketers and advertisers to promote their brands
  • A way for people who want to change their society to connect and communicate often more safely than they could otherwise
  • A tool for politicians and activists to spread their words
  • A means of communicating abuse and threatening others online

It’s all of those things, the good and the bad (and the ugly), and much more. If you use Twitter in a way that I’ve not mentioned, then that’s what Twitter is to you.

Twitter is also a mirror on society, reflecting the behaviours and actions of people that really is little different to behaviours in the actual world. There are consequences in what you say in a tweet and Twitter has come of age in this regard where the law is catching up with the wild west.

Twitter also came of age when it became a publicly-listed company on the New York Stock Exchange in September 2013. And naturally, it announced its intention to file an IPO in a tweet.

And so Twitter today is very much part of the mainstream, used in all those different ways by people to express opinions, share interesting things and engage in dialogue with others. I’ve always believed Twitter is what you make of it.

I like to look on the bright side about Twitter and human behaviours. And I can think of no better way to illustrate that sentiment than this terrific video from Twitter on the 2014 World Cup through the collective lenses of millions of tweeters.

One big milestone on the continuing journey.

Mobile can grow, but publishers are losing out on revenue

A guest post by Simon Birkenhead, CEO of Axonix, an advertising technology company backed by Telefonica and Blackstone.

Location-based mobile adFacebook recently announced its Q3 results and, for many in the industry, the most headline-grabbing statistic was that mobile ads now make up an incredible 66% of the social network’s total advertising revenue.

And yet, I reacted to the announcement with little surprise.

After all, it shouldn’t be news to anyone that mobile advertising is growing at a remarkable rate – especially when you consider there are currently more data connections in the UK than there are people. In August this year, mobile internet usage in the UK overtook desktop, meaning a majority of website visits now come from tablets and smartphones.

In the first half of 2014, mobile advertising in the UK exceeded £700 million – that’s around 20% of all digital ad spend and a whopping 68% growth over 2013. That’s more than radio and cinema advertising combined, and is fast approaching the scale of outdoor advertising.

However, despite this explosive growth of mobile advertising, I believe brands, publishers and consumers are still not being well served by mobile ads, and this is preventing mobile advertising from growing even faster.

Facebook, it seems, has done a great job at figuring out how to best present ads within their users’ mobile newsfeeds. However, most publishers I speak with say they invest a tiny fraction of their time thinking about how to optimise their own users’ mobile ad experiences. This is despite some publishers admitting they now see close to 50% of their traffic from mobile devices.

Facebook mobile ads

App developers also continue to stick rigidly to the tiny banner ad rather than exploring more engaging, and valuable, alternatives such as video and full-screen interstitials. Throw in the fact that mobile ads are often poorly targeted and it is no wonder brands struggle to find success through mobile.

So how to get it right? The winners will ultimately be those publishers who can provide a platform where brands can run engaging mobile ads that reach the right person with a super relevant message at the right time. On mobile this is even more critical, and even more difficult to achieve, because of the very mobility inherent in mobile device.

The heavily-touted silver bullet to this challenge – and one of the buzzwords of 2014 throughout all forms of advertising, not just mobile – is programmatic.

Programmatic advertising through ‘ad exchanges’ brings the ability to buy and sell advertising in an automated fashion in real-time, one ad impression at a time.

And it’s struck a real chord.

Publishers and brands alike are embracing programmatic advertising as the primary way business should be conducted. It enables real-time audience targeting at scale, a benefit that’s even more relevant for mobile because of its uniquely personal characteristics. Better targeting means improved ad relevancy, increasing the value for both consumers and advertisers, and delivering a higher price for publishers’ media space.

There are also significant cost efficiencies generated by outsourcing most of the heavy lifting to computer algorithms and reducing the dependency on expensive media buying/sales teams. Unlike the ‘secret sauce’ of ad networks, ad exchanges like Axonix can provide full transparency to both buyer and seller of the media space.

Such immense mobile growth in such a short space of time was always going to bring both challenges and opportunities for app developers and publishers. So now is the time to get equipped with the facts and best practices to capitalise on the opportunities presented by programmatic mobile advertising.

Whether an app or mobile content is free, freemium or paid-for, monetization of mobile ad space through ad exchanges allows publishers to optimise ad revenues whilst slashing costs.

Just as it is inevitable that consumers’ usage of mobile devices will continue to grow, so it is inevitable that marketing budgets will continue to follow those consumer eyeballs.

So get ahead of this disruption. Just as Facebook has rebuilt its entire ad business around mobile, it will be those publishers and app developers that harness the programmatic opportunity and offer a platform for more intelligent mobile advertising who will find themselves in the best stead to capture these budgets in the future.

Simon BirkenheadSimon Birkenhead is CEO of Axonix, a leading mobile ad exchange that helps mobile publishers to maximize their ad revenues. He has 20 years experience in digital marketing, mobile advertising and business management, the majority of which has been within high tech companies at the cutting edge of their industries.

He has launched three digital advertising start-ups, including Axonix, and was the first hire into Google’s Global Agencies Team in 2008, establishing this as the benchmark sales team for engagement at global exec level with the Big 6 advertising agency groups.

Simon is a mentor and Board advisor to a number of new technology companies and is a regular speaker at industry conferences, including Mobile World Congress, Festival of Media and Ad:Tech.

(Starbucks image: via Forbes; Facebook ads image: Facebook via Wired)