On Monday I was asked to visit 30 Rock Studios and chat with the closing bell team on CNBC about Twitter’s earnings. I’m “bullish” on Twitter stock. The analyst David Seaburg of Cowen and Company is obviously a very smart guy. In his view Twitter is a “one trick pony.” I disagreed. It made for great TV, but I thought I’d articulate exactly why I’m bullish on Twitter, and why I think Wall Street Analysts like David miss the mark when looking at social media networks.
Firstly, I own Twitter stock, and I’m not an analyst. Frankly I’m about as far from a finance guy as you can get. I’m a sales and marketing guy that owns a social media agency. I’m a student of social media, but the key differentiator is that my agency is platform agnostic. We only use technology that will further the agenda of our clients. If Twitter didn’t work, we wouldn’t use it. Period.
Here are the three reasons why I believe Wall Street analysts miss the mark on Twitter.
1. Twitter generates conversions for my clients
CNBC has me on their show because unlike an analyst, I actually USE Twitter. I use it for my personal life, my business life, and on behalf of my clients. The most compelling way I use it is for said clients. When we select where we’re going to spend media dollars I’m beholden to nobody. We spend money where it will help to generate the most money for my clients. Twitter converts. Twitter cards work. Twitter has account managers that help my agency understand how to leverage their ad platform. Twitter works. Twitter works, and oh yeah, Twitter works. Phew.
2. Twitter allows for real time engagement between brands and customers
So when our client Bluerock Energy based in Syracuse NY wants to parachute into a conversation on Twitter about energy, in their local geographic area, in real time – the most efficient way to spend their media dollars is on Twitter. Bluerock can answer questions, engage and help to inform potential customers in real time.
3. Twitter should not be compared to Facebook. Ever.
The other part of the argument that always confuses me is when Wall Street Analysts decide that they want to compage Facebook with Twitter. I think it’s because they don’t understand how different these social networks are. They don’t use them, but they have to put them into a category. This is a HUGE mistake. It makes them look very silly in my opinion. It just makes it even more apparent that they don’t use the platforms, and they have no real understanding of how they make money through advertising.
So take look at the video, and let me know what you think in the comments.
Am I off my rocker?
Am I oversimplifying things, or is Wall Street overcomplicating it?
Photo Credit CNBC