WPP in data-sharing pact with Twitter
07 Jun 2013
Microblogging site, Twitter Inc seeking new revenue sources, has signed a pact with WPP Plc to provide data, as the world's largest advertising group tried to create more efficient campaigns.
The partnership would see integration of Twitter data into WPP's media and analytics products, according to a statement today from the London-based advertising company. The statement, however, was silent on the financial details of the disclosed deal.
Twitter, based in San Francisco, is looking to expand its revenue sources in a bid to reach $1 billion in sales by 2014. For WPP, Twitter data would help it build targeted campaigns and give customers access to more real-time information.
''As Twitter has grown, marketers are leveraging the platform for brand insights, relevant real-time messaging, and customer research,'' Twitter chief executive officer Dick Costolo said in the release.
While according to Costolo the management was not looking at concentrating on an initial public offering, Twitter had widely been predicted to hold a share sale before long to fund expansion and give early investors a way to realise financial gains on their holdings.
The company last month, appointed Morgan Stanley managing director Cynthia Gaylor to run corporate development, taking on board an executive with 17 years of investment-banking experience.
Twitter Inc was valued at around $10 billion by an investor last month, up about 10 per cent from a previous estimate.
WPP, the world's biggest marketing services company by revenues however has not made a commitment to advertise on Twitter. Instead, it will integrate Twitter into its analytics platforms and launch new data products and services for its clients.
Financial Times cited Sir Martin Sorrell, WPP chief executive speaking over phone from the World Economic Forum in Myanmar, said: WPP would have access to behavioural data that Twitter had developed, which would be available to WPP's media planning and buying business, to Kantar, and to its public relations and public affairs businesses.
He added, it would enable the company to analyse how people interacted with one another, what they liked and what they disliked, what they were doing and what they were not doing.
With over 200 million monthly active users, Twitter had become an important tool for marketers seeking insights into what people thought about a particular topic, from television shows to political revolutions.
The platform is also being used by brands to communicate directly with their customers and some had managed to build huge audiences. Spanish football club Real Madrid boasts around 8 million followers.
