Judith Hurwitz, an analyst with Hurwitz & Associates, said Twitter isn't off track, but the company needs a strategy that finds a new way to monetize its importance as a platform.
"I think one of Twitter's problems is the company's inability to be able to become an advertising platform," Hurwitz said. "While its platform is lively and well-used, the number of people signing up and using it hasn't increased very much. A company that wants to use Twitter to market its services can do that without buying ads."
While Twitter needs to find a way to lure in more users, it also has to find a way to allow users to create communities of interest so advertisers are encouraged to spend more on specific groups, she said.
"I think Twitter needs to innovate in creating easy ways for users to find each other without having to use third-party tools that force them to segregate their followers into categories," she said. "Twitter also has to be known for something larger than the megaphone and more of a conversation. The average user doesn't understand how to take advantage and get value from Twitter. That has to change."
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