1. Measuring the inmeasurable. Twitter accounts.

Measuring the immeasurable. Twitter accounts

Today we are trying to evaluate the twitter accounts. There are a lot of formulas on the internet trying to get a value and most of them can be summarized as follows

Twitter account value =  Average of tweets per day  * Followers * 25 % * € 0.1245

Most of these websites are using fancy words such as " potential eyeballs per day ". Basically eyeball is an impact, but I like the word eyeball anyway.

Why there is a 25%? Because a study suggests that three-quarters of tweets are ignored.

Why 12.45 cents ? Well this is more " complex ". According the IPO paperwork, twitter had 230 million active users , and 500 million tweets per day.  Twitter says that “We deliver more than 200 billion Tweets per day to our users.” Therefore if we divided its $24.9 billion value over those 200 billion tweets per day we have the fancy amount of 12.45 cents.

Looking at this model with some examples on a couple of websites, we realized that the main variable is simply the followers.

However this formula has some problems such as that 25% from nowhere, because some people has more influence than others . Those ones with more influence usually get a higher CTR ( Click-through rate). We propose change is by influence which measures the number of read tweets over the number of tweets.

The another mistake is the average of tweets per day, because it doesn´t take in account the likes, favorites and retweets, therefore we propose change it by reach.

How is the market of Twitter accounts?

To be clear, tweeters are selling their accounts at 10% of the "theoretical value"! And there is still a big misunderstood about a twitter account potential because the sold prices are far dispersed as we can see in the following chart.

In this excel sheet we can see how the tweeters don´t know the right value of their tweeters and they are putting the price almost to chance.