Twitter Inc's next chief executive officer faces a crucial challenge as the company seeks to appease Wall Street after this week's management shakeup - helping disaffected advertisers connect with users.
And many advertisers, analysts and investors say Twitter already has the right person for the job: not interim CEO Jack Dorsey but Adam Bain, the company's president and head of revenue, who has emerged as an early favourite.
And many advertisers, analysts and investors say Twitter already has the right person for the job: not interim CEO Jack Dorsey but Adam Bain, the company's president and head of revenue, who has emerged as an early favourite.
 |
| CEO Jack Dorsey |
Twitter's outgoing chief executive, Dick Costolo, resigned abruptly Thursday amid pressure from investors to increase the user base and improve what's known as direct response advertising, the most lucrative type on the microblogging site.
Those ads prompt users to take an action, such as signing up for a website or buying a product. Improving them is central to Twitter's ability to make more money.
For now, advertisers hope the management change will "light a fire" under Twitter, said Adam Epstein, chief executive of adMarketplace, which works with search advertisers. Even though they have discussed ways to improve advertising with Twitter executives, the company has been slow to change.
"When you talk to Twitter, you can throw some great ideas on a whiteboard, but there seems to be a lack of urgency," Epstein said.
They also hope Twitter makes the site easier to use so that more people become regular users and click on ads. Advertisers also want Twitter to provide data that allows them to gather more information on consumers.
Twitter would not make an executive available to comment on Friday.
In April, Costolo said Twitter was forced to cut rates for direct response ads after they failed to deliver as promised. That led the company to cut its revenue forecast for the year as it anticipated making $4 million to $5 million less each quarter.
Half a dozen ad executives interviewed by Reuters said they spend more money on rival platforms, such as Facebook and Google, because they have more users, better capture attention and provide more data on how advertisers can target consumers.
Dorsey, who served as CEO from 2007 to 2008 before management ousted him, said the CEO search has not yet begun but has not ruled out his interest in the job permanently. He said he would not change the company's strategy.
No comments:
Post a Comment