Why Huge Corporations Fail Miserably on Twitter

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

In among the major and minor celebrities, news media outlets, the Pope and President Obama, there are no huge corporations with substantial followings on Twitter. As a matter of fact, among the list of the top 1,000 people, places and things with large follower bases, it is mostly smaller, niche companies that have some popularity. In the world of Twitter, either because of suspicion, boredom or demographics, the corporate world might as well pack up and go home.

Starbucks Corp. (NASDAQ: SBUX) has a modest following of 4.3 million, which places it 244th with Twitter followers. Leader Justin Bieber has 45 million. Whole Foods Market Inc. (NYSE: WFM) has 3.6 million, which puts it in the 326th spot. BlackBerry Ltd. (NASDAQ: BBRY) has 3.2 million, which places it at 376. Maybe people on Twitter like to watch companies, like BlackBerry, that go through train wrecks.

Starbucks and Whole Foods are among the American companies that can claim to be good citizens. Each buys ingredients for its top-selling products through networks that are built around carefully crafted relationships with farmers. In that sense, their habits do not match those of big companies at all. Each has avoided using slave labor in China and the yield of crops that use genetically altered seed.

The lack of big companies on Twitter likely goes to the trustworthiness of their messages. As hard as these firms try to make their messages fun or tether their products to customer care, the only reason that Xerox Corp. (NYSE: XRX) and J.C. Penney Co. Inc. (NYSE: JCP) have a presence on Twitter is because they pay for it. The fact that companies pay for their presence likely makes the universe of Twitter users even more suspicious.

The absence of large companies on Twitter is actually very good for the social network. These corporations have to resort to paid tweets to have any hope of reaching large audiences. Twitter has found a friend in the world’s largest marketers, largely because they are ignored.

Companies that wonder why they do poorly on Twitter need go no further than some of the world’s largest companies:

@walmart Save Money, Live Better. Follow us to learn about tips, solutions & limited time specials! Tweet us @Walmart – we’re here to help and provide inspiration 24/7!

What is it that Wal-Mart Stores Inc. (NYSE: WMT) inspires other than cheap products, many of which are made by poorly paid laborers in China.

Then there is:

@Chrysler Chrysler Group LLC Files Registration Statement for Proposed Initial Public Offering
http://www.chryslergroupllc.com/Investor/sec/Pages/default.aspx …

That’s so exciting, it takes one’s breath away.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618