With the recent news that Twitter got ‘popped’ at a billion dollar valuation, I got to weigh in–albeit briefly–on the subject in a Business Week article from Stephen Baker:
There’s a perception that Twitter will have a grip on the real-time Web, which connects customers to brands.
So what was I talking about? Well, there’s a notion in marketing circles that Twitter is the ‘first hop’ on the information superhighway of what’s ‘en vogue’ now, and that stream of real-time consciousness is made more prescient by the never-ending-friending/following phenomenon that’s unique to Twitter. Therefore, marketers have first look at what’s hot or not, what’s new or through, and that is valuable for market research, product feedback, trend analysis, etc.
However, a billion dollars is a ludicrous sum and I cannot justify that valuation, not at least until Twitter starts earning revenue of its own and shows a path to break-even.