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Twitter Inc Need A Facebook Inc Like Focus To Succeed

Stocks in this article: FB TWTR

Twitter management needs to recognize that merely giving more pricing option to the business will not help in increasing the number of advertisers.

Twitter Inc (TWTR) is following Facebook Inc (FB)'s footsteps by focusing on the small and medium sized business with new results based advertising rates. New services launched by Twitter resembles closely to Facebook, which already offers the options for clicks, likes, apps installs and other features that have tasted the success in alluring the SMBs.

Management need to change focus

However, Twitter is not as successful as Facebook for the mere reason of ad price structure differences, says a report from Fool.com by Adam Levy. Focus of Twitter is different from Facebook as the former describes itself as a "real time information network" whereas Facebook is a social network.

Management at Twitter is doing little to exploit the area, where the company could do well such as it can be a powerful tool for the business connects with customers, believe Levy. For getting the advertisers flocked on the website, the company needs to focus on its core competencies. Contrary to the Micro-blogging site, Facebook is preferred by the small businesses as it offers the owners the facility to connect with the customers, tell about the business and also engage with the customers. Twitter, on the other hand, offers very less space for any advertiser to talk about business and focuses less on attractive pictures.

In the previous quarter, Twitter had only 4.5 million small business accounts on its network. However, latest ad tools from the company are expected to attract small business and convert them into advertisers. Although Twitter has not disclosed any specific numbers on its advertising customers but claims that it has an advertiser base of thousands.

Twitter need a Facebook like focus

New pricing structure will hopefully increase the advertiser base of the company. SMBs prefer result based pricing structure more than any other strategy for a simple reason that the option offers them a better view of their projected advertising return before they spend the budget amount into a campaign.

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