Re: Burned through $12 billions, losses of billions, and will never make a positive ROI..
"There never was a viable business model, never will be. At least for a dot com company like Twitter. With their obscenely high overheads and pay."
Ahhh, all of the dot com dreamers that have a business degree but no business sense. At this point they should be able to figure how much money they can charge advertisers by multiplying the number of mDau times some figure keeping in mind how much any other media outlet is charging per view/click/eyeball/etc. Since mDAU can be adjusted, the revenue of the company through advertising can be bracketed. Now all they have to do is find a way to run the company in a way that brings in more revenue than they have costs. Two things come into play, how many advertisers can they bag and how cheaply can they run the company. Ads max out at some point to leave an acceptable amount of space on each page and ads have to be visible for a minimum amount of time. The going industry price for the ads is also fixed given the audience type. If you are Architectural Digest magazine, you can charge the moon since you are delivering a very specialist audience to the advertisers. I expect there is a calculation for social media advertising that isn't as generous since the audience is much more general.
Biting the hand that feeds IT
