500 million tweets per day, but no profit. Here are three challenges facing Twitter as the company prepares to go public. Fred Katayama reports.
▲ Hide Transcript
▶ View Transcript
140 characters more than 200 million active users 500 million tweets -- zero profit. Twitter hopes to raise up to one point six billion dollars in IPO. You're three challenges Twitter faces. One Twitter must keep its large user base active and growing. A Reuters it -- poll found that more than a third of those registered on Twitter don't use it. There that the FaceBook were only 7% don't use the site. Forrester Research analyst Nate Elliott says a small user based loses the network effect that defines social media. I think the challenge is making the number of uses gross that it lives up to. Their place in the public imagination I mean according to our survey data less than a quarter of US online users go to Twitter every month. It's not a bad number but it's far behind say what FaceBook claims as a number of active users in the US to prove its value to marketers if they can do that they can offer markers are right tools. And the right processes and insights based on this walls to measure the value Twitter striving as a platform. Then a lot of marketers are going to be very happy and if they can't. Well markers that might decide that that it -- and time elsewhere. Three Twitter needs to diversify its revenue sources beyond advertising and data licensing. Gartner research director Brian -- says Twitter should take advantage of its mobile roots. Working with merchants to -- users with marketing messages as he walked by other sports. Just before its IPO Twitter is borrowing a page on FaceBook this week we begin automatically preview pictures and videos on the time line. Making a text based platform more visual could make Twitter more appealing to users and advertisers.