What’s the Value of Twitter’s Ecosystem?

Posted Monday, November 25, 2013 in Social Media by Patricia Seybold

At Twitter’s current stock market valuation, its market cap is $24 billion. Twitter currently has 232 million monthly active users. So each tweeter (Twitter end-customer) is therefore worth $103 to Twitter’s shareholders. (Using the same logic, each active Facebook user is worth $100 to Facebook.)

twitter logoBut there’s more. Twitter has a vibrant ecosystem consisting of 7 layers of players—end-customers, content providers, app developers, customer service teams, companies/brands, ad agencies, and data providers. How much in profits does this entire ecosystem generate?

Our guess? $2.43 Trillion. 100x the value of Twitter alone. That means that each of us who Tweets (or who monitors others’ tweets) is actually worth $10,300.

value of twitter's investors

What value are we tweeters generating? Well, of course, advertisers pay Twitter for our attention. That’s largely factored into the profits that Twitter can make from each of us over the next five years—the $103 in profits that Twitter will receive from “selling” us to its advertisers.

But what about the value of all those customer service software solutions that companies use to monitor and respond to customers’ tweets? What about the value of the 3 million Twitter apps that customers download and pay for? What about the value of the millions of eyeballs that broadcasters and publishers get because we are tweeting links to their content? What about the value of the insights companies receive about hot new trends or consumer needs? What about the value to news organizations from citizen journalism at the scene of breaking news?

However, the real value multiple comes from the exhaust. In other words, all of the tweets that all of us keep generating (500 million/day) provide a treasure trove of information that can be mined, analyzed, and used for much more than advertising purposes. In future articles, we’ll start exploring some of the interesting and surprising ways that Twitter ecosystem players are turning seeming Twitter trivia into valuable and actionable information and decision-making tools. Stay tuned!


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