Twitter targets big business for profits

TWITTER Inc is turning its spotlight onto a new demographic in its bid to lure more advertising dollars to its social media platform – deep-pocketed business users.

The microblogging service has 330 million monthly active users, but has struggled to turn its popularity into profit, losing out to rival Facebook Inc for advertising dollars.

Now it is going after a more niche business audience, taking on LinkedIn, Microsoft Corp’s professional online network.

For several years, Twitter has had an employee whose job is to teach and encourage chief executives like Goldman Sachs Group Inc’s Lloyd Blankfein and Walt Disney Co’s Bob Iger to tweet. They both do, sparingly. Twitter launched a round-the-clock streaming news network with Bloomberg Media this week, which is designed to appeal to businesspeople.

The 24/7 news service, called “TicToc by Bloomberg,” live-streamed coverage of British Prime Minister Theresa May discussing Brexit negotiations on Wednesday, its third day of operation, attracting about 4 000 viewers.

Hourly global news updates had total views in the hundreds of thousands.

Twitter and Bloomberg have not publicised financial arrangements over TicToc, but such projects usually work on a share of ad or sponsorship revenue. Neither commented on Wednesday. TicToc has seven initial sponsors, including wireless carrier AT&T Inc and derivatives marketplace firm CME Group.

Bloomberg has said it will eventually open up to additional sponsors.

Twitter’s shares rose slightly on Wednesday.

They are up 45% over the last 12 months, outpacing the red-hot technology sector, even though advertising revenue was down 8% in the third quarter from the previous year, the third consecutive quarter of year-over-year declines.