{"resolved":true,"match_type":"uuid","source_type":"original_book","book_id":"50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed","title":"Digital Capitalism","author":null,"edition":null,"publisher":null,"year":null,"isbn":"2021022153","requested_by":"printed_page","book":{"source_type":"original_book","book_id":"50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed","id":"50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed","uuid":"50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed","title":"Digital Capitalism","normalized_title":"digitalcapitalism","author":null,"edition":null,"publisher":null,"year":null,"isbn":"2021022153","isbns":["2021022153","9781032119182","9781032119205","9781003222149","2405518376"],"parsed":true,"ai_readable":true,"document_type":"book","page_count":343,"navigation_url":"https://workshop.closeclaw.top/ai/book/50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed","title_url":"https://workshop.closeclaw.top/ai/title/Digital%20Capitalism","fixed_page_url_template":"https://workshop.closeclaw.top/ai/book/50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed/page/{printed_page}","path_api_url_template":"https://workshop.closeclaw.top/api/ai/book/50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed/page/{printed_page}","read_url":"https://workshop.closeclaw.top/api/ai/read/50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed","page_url":"https://workshop.closeclaw.top/api/ai/books/50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed/page","search_url":"https://workshop.closeclaw.top/api/ai/books/50b7f922-b940-4a05-8eb0-c4dc0d8ec9ed/search"},"page":{"printed_page":222,"pdf_page":236,"physical_index":236,"physical_index_base":0,"printed_page_status":"recognized","page_sha256":"efbf331f593633f81a55b250cbf7c975163c5c65b05b6d2866e93b40cefc6c84"},"chapter":"DIGITAL CAPITALISM","content":"Twitter has been struggling financially, it became a stock-traded public company in November 2013, although its annual net losses were US\\$ 645.32 million in 2013 (Twitter SEC-Filings, Form 10-K 2013). Weibo – a subsidiary of Sina – made losses of US\\$ 116.74 million in 2011, 102.47 million in 2012, 38.12 million in 2013, and 62.7 million in 2014 (Weibo SEC-Filings, Form F-1 registration statement).\n\nJust like Twitter in 2013, Weibo became a stock-marketed listed corporation in April 2014 when it made its initial public offering (IPO) on the NASDAQ stock exchange. And also like Twitter it made this move although it had made significant losses in the previous years and continued to make a total loss of US\\$ 62.6 million in financial year 2014. Weibo and Twitter’s share values have been fluctuating. In December 2014, eight months after its IPO, Weibo’s share value dropped below its initial value of US\\$ 17. The same happened to Twitter’s share value in August 2015, when it dropped below the initial value of US\\$ 26. Both shares have been fluctuating and volatile. They have until late 2015 not seen large increases.\n\nTwitter and Weibo are not communications companies, but predominantly large advertising agencies. Targeted advertising is their main revenue source. Around 85% of Twitter’s revenues came from advertising in 2012 and 89% in 2013 (Twitter SEC-Filings, Form 10-K, annual report for 2013). About 78.8% of Weibo’s revenues were in 2013 derived from advertising and marketing, 12.2% from games, and 5.9% from VIP membership services (Weibo SEC-Filings, Form F-1, registration statement). In 2014, Weibo generated 79% of its revenue from advertising and marketing (ibid.). The rest of the revenue was made from online games and data licencing (ibid.).\n\nWeibo and Twitter are high-risk financial companies because they have been listed on the stock market without making profits. So, whereas their share values are positive, their net income is negative, which constitutes a divergence between profits and share values. Both companies hope that their large number of users attracts advertisers and financial investors. They assume that they will make large profits in the future and that this hope will keep investors confident.\n\nThe risks these companies face is two-fold: (a) they face a highly competitive online advertising market, in which Google and Facebook dominate in the West and Baidu is a big player in China; and (b) microblog communication has an immensely high speed and short attention span. It is difficult to place targeted ads on them and make users klick on them. It is not easy to make profits with targeted advertising because the average click-through-rate is around 0.1% (Comscore 2012); users only click on every 1000th online ad presented to them. And even then it is not sure if such clicks on targeted ads tend to result in purchases or not.\n\n222\n\nThemes","previous_page":221,"next_page":223}