Twitter getting flack from NBC Universal about poor advertising ROI

Just ahead of their much anticipated earnings report, Twitter Inc. (NYSE:TWTR) is facing some major criticism. While the company courts major media players for advertising revenues, a head executive at NBC Universal says that Twitter just has not worked yet. Ouch.

Alan Wurtzel, head of NBC Universal’s Research department stated, “A lot of people want to show that they are on the cutting edge. One of the things that is on the cutting edge is social media. Why wouldn’t I want to say to you, ‘We have a potent new way in which we can drive ratings?’ But “it just isn’t true. I am saying the emperor wears no clothes. It is what it is. These are the numbers.”

RoiWurtzel was referring to the Olympic games. The company expected Twitter to drive viewership. However, their studies have shown that only 19 percent of their viewers posted about the games on the micro-blogging site.

So, how does this bode for Twitter? For starters, NBC is part of the “Big Three” TV networks. Having NBC on their side makes it much easier to get and retain other major television networks. If NBC decides their Twitter marketing efforts are a dud, other companies might follow suit or feel the same.

Also, is it Twitter that brings the hype or is it just a natural extension of media fans? That is a question that can be answered to favor either party. Not to mention the fact that a publicly traded company has not yet made a profit is a daunting situation for the organization. So, while Twitter is still considered a massive social media outlet; the debate is still out regarding its efficiency.