Tomahawk, WI 12/03/2013 (BasicsMedia) – When companies shift from being private to public entities, their major concern becomes to please their shareholders, and Wall Street. To achieve this, a company must look at ways of increasing its revenue, and this is what Twitter Inc (NYSE:TWTR) has realized. Its not as if Twitter Inc (NYSE:TWTR) has just woken up to this realization, but it did the moment it started planning for the launch of its IPO in November, 2013, bearing in mind that this was the most eagerly awaited of its sought this year. So, how does Twitter Inc intend to raise its revenue going forward?

Twitter Needs to Raise Revenues to Please Wall Street and Shareholders

One way of pleasing investors and Wall Street is by improving your revenue collection efforts. This helps companies to stand a better chance of enjoying more profits, and increasing its free cash flow. Twitter, just like any other publicly traded company, cannot afford to contradict what the financial sector has accepted and lives by. Thankfully, it has decided to pursue retail companies since it understands that they have something special that they can contribute to Twitter and make this firm a more profitable business than what many anticipate.

Twitter Inc (NYSE:TWTR) is not waiting to pursue retail companies at a later date. The company is embarking on this project at once, and intends to come up with products that appeal to retail companies from this holiday season. Twitter is convinced that its revenues will receive a major boost through ads, and this is what it intends to offer to retail companies over the upcoming holiday period and beyond. The company’s advertising executive, J.J. Hirschle, has already met with retailers such as Best Buy and Target Corporation, with a view to inviting them to use its platform to advertise.

Twitter Facing a tough Battle to Convince Retail Companies

This task is not as easy as some analysts may believe. A recent survey conducted by Baynote Inc discovered that a large number of people believe that social media is not the best platform tom convince people to shop at retailer shops. To be more precise, the survey found out that close to 80% of the respondents believe social media is not the best or most effective platform when searching for retailers, with whom to make purchases. Consequently, Twitter Inc (NYSE:TWTR) needs to convince retailers that it offers them the best chance of attracting the right customers.

Twitter Inc (NYSE:TWTR) already understands that advertisers cannot spend money on marketing gimmicks, if they believe that these efforts will not bear fruit. Just as Twitter would not throw money down the drain, so will these retail companies. Therefore, Twitter has to work on a product that will convince retail companies that they will attract many customers when advertising on this social media. This is important since only 15% of the respondents said they advertise on Twitter, compared to Facebook’s 38%, Pinterest’s 28%, and Instangram’s 19%.

Overall, Twitter Inc (NYSE:TWTR) is on the right path, and if it succeeds in convincing retail customers to run their ads on this social media site, it will have kick-started a process that will see it attracting loyal customers for a lengthy time.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.