The new chief executive officer of Twitter Inc.’s is looking at a crucial challenge as the company attempts to appease Wall Street after the management shakeup this week; assisting disaffected advertisers in connecting with users. Furthermore, numerous analysts, investors and advertisers say that the microblogging platform already has the right man for the job and it isn’t Jack Dorsey, the interim CEO. It is the company’s head of revenue and president, Adam Bain, who has come out as an early favorite. Dick Costolo, the outgoing chief executive of Twitter gave his resignation rather abruptly on Thursday.
The CEO had been under a lot of pressure for expanding the user base of the microblogging site and enhancing what’s called direct response advertising. This is the most lucrative type of advertising because the ads prompt the users into taking action like purchasing a product or signing up for a website. It is essential for Twitter to improve them because this will give its money making ability a boost. Before Bain became a part of Twitter in 2010, he had been president of the Fox Audience Network where he had held the responsibility of monetizing across the web properties of News Corp’s.
During his time at Twitter, he has assisted in aggressive growth of the advertising platform. Advertisers have said that Bain understands the media business and he holds most of the valuable relationships of the company with the advertisers. Therefore, he most definitely has the ability of redirecting Twitter so it can meet the demands of the advertisers and also make more money in the process. As for now, advertisers are hoping that the changes in management of Twitter will ‘light a fire’ and get it moving in the right direction. The firm has been a bit slow in changing its ways even though Twitter executives have discussed ways of improving advertising.
Advertisers are also hoping that the microblogging platform will make the website easier to use in order to encourage more people into joining the social network and clicking on ads. They are also hoping that Twitter will provide them with the data they need for gathering more information about their consumers. Advertising is not at all easy on Twitter because of the fast-moving news scrolls of the website because it reduces the possibility of users clicking on the ads. In contrast, Instagram and Facebook portray videos and photos in their ads, which are effectively displayed to the users.
This increases the possibility of users clicking on the ads. Costolo had said that in April, they had had to reduce rates of direct response advertising because they hadn’t provided the expected returns. Due to the reduction in rates, they had to cut their revenue forecast for the year as well, which was about $4 to $5 million. The interim CEO, who also served as CEO from 2007 to 2008 said that they hadn’t begun the research for a new chief executive, but they haven’t permanently ruled out his interest. He said that he didn’t plan to change the firm’s strategy.