From day 1, Twitter’s “business model” was split up into two parts: 1) Create a service everyone wants to use. With over 50 million registered users, I would say that part one has been fulfilled. 2) Figure out a way to make money from this service. Starting today, the wheels for fulfilling that goal have been put in motion.
Known as “Promoted Tweets”, this will be Twitter’s foray into actually making money. Since its beginning, Twitter and it’s co-founder Biz Stone have looked into different ways of monetizing the service, without pissing off its users. The model unveiled today, will follow Google’s highly successful ad model: insert ads at the top of the search results page that are related to the term being searched.
As described by Twitter:
“You will start to see Tweets promoted by our partner advertisers called out at the top of some Twitter.com search results pages. We strongly believe that Promoted Tweets should be useful to you. We’ll attempt to measure whether the Tweets resonate with users and stop showing Promoted Tweets that don’t resonate. Promoted Tweets will be clearly labeled as “promoted” when an advertiser is paying, but in every other respect they will first exist as regular Tweets and will be organically sent to the timelines of those who follow a brand.”
The first guinea pigs in Twitter’ first foray into actually turning profit (they hope) will be Best Buy, Virgin America, Red Bull, Sony Pictures, Bravo, and Starbucks Coffee.
I’ll admit it, I don’t really care much for Twitter. There, it’s out in the open. I have an account, I’ve tweeted a little bit (most of which are just automatic when I put up a new blog post), but I still haven’t found a need/use for it in my life. The times I use it most is when it’s to participate in some sort of contest. When I first got an account I was able to connect with fellow social media enthusiasts, but that kind of tapered off.
Since I am not a hardcore Twitterer, I can’t say for sure how this will impact Twitterers as a whole. But who said I can’t speculate?
As it stands now, these ads will only show up when you search for a specific term, a la’ Google Search. Over time, according to the Wall Street Journal, these ads may make their way into the stream users see when they log in to the site, which means they will even see the ads if they are using a third party app (Tweetie, Tweetdeck, Twidroid, etc.). Also, these ads will only be seen by 2% to 10% of Twitter users in the first few days of its initial rollout. So initially, I think these ads will not be intrusive or annoying at all. When they begin to roll out into the general tweet stream, that may be another story. Though many of these third-party applications have ways of filtering out tweets from the stream, so if you find them a pain in the ass, you can just get rid of them (essentially). Will Twitter know if the ads are being filtered? Even more, will they know if specific ads are being filtered?
Well that is why Twitter has built a set of rubrics for ads they call “resonance”. If an ad is performing poorly (doesn’t work, isn’t click/viewed/shared often), Twitter will notify the advertiser and pull the ad. This will benefit both the advertiser and the user.
How will Twitter decided which ads to incorporate into your stream? Whether it be based on geographic location (somewhat easy to do, considering most of twittering is done from mobile phone, the majority of which nowadays has built-in GPS chips), tweet history, or the types of people you follow, that is a question for a little bit down the road.
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