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The Secret to Twitter's Success

Posted on 11.04.2013

I don't know about you, but I've had just about enough of the roadshow-inspired hype as Twitter prepares to release its IPO this week or early next week (at a reported $23-25 per share or higher).

I'm not a stock analyst so I can't (and wouldn't) tell you whether it's launch price comes close to its actual value but I can tell you this - Twitter is doing everything they can to prove they are capable of making big money. 

Twitter has spent the whole year acquiring companies, but the secret to its success will likely come from its own internally developed products - namely its Ads API. Launched officially in February 2013, the API enables third parties (partners) a way to integrate Twitter advertising management into their products.

Five partners were announced during the API's release (Adobe, HootSuite, Salesforce, Shift, TBG Digital) and many more have joined since (Kenshoo Social, Optimal Social, SocialCode, SocialFlow, Unified Social, and Voxsup) and they continue to sign on. 

The most recent Twitter Ads API partner is that of AdParlor, the social media platform of AdKnowledge.

"Twitter users send a half-billion Tweets per day -- that's a lot of data and engagement opportunity for brands," said Adknowledge CEO Ben Legg. "We look forward to digging into all that data, and then doing what we do best: deliver optimized digital advertising."

The fact that more companies are leveraging the Twitter Ads API is a good thing, but it shouldn't indicate that the company is set to boom and not ultimately bust. That will rely on whether both consumers and small and mid-size brands can derive value from their marketing investment in the platform - in much the same way that Facebook has done. 

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