Cofounder Says Twitter Won't Use Ads To Get Revenue
Here's a new article I just discovered. It's interesting how Twitter plans to eventually monetize their site. Enjoy!
Micro-blogging site Twitter has created a massive following with users tweeting about everything from Apple to Saturday Night Live. That creates a huge earning potential.
Because Twitter is free, the San Francisco, Calif.-based company has no subscription revenue and observers have believed the only way to profit would be from corporate advertisements. But Twitter cofounder Biz Stone says that won't happen.
At the Reuters Global Technology Summit, Stone said the company doesn't plan to use ads to get revenue. In the past, Stone has said Twitter is able to operate from the interest earned on the $55 million it has received in venture capital.
Ads Not 'Interesting'
"There are a few reasons why we're not pursuing advertising -- one is it's just not quite as interesting to us," Stone told the Reuters audience via a video link.
Twitter users have wondered for some time how the company will make its venture capitalists happy. One way was announced in March.
Here It Is...
Federated Media launched Web sites that pull together tweets on specific topics or by specific groups of people. The online advertising network brings in companies to sponsor the sites and will share the ad revenue with Twitter.
The first mini-Twitter Web site, ExecTweets, includes a collection of tweets from executives. The mini-site is sponsored by Microsoft. Another example is March Tweetness, with tweets about March Madness basketball tournaments sponsored by AT&T.
Stone said he and cofounders Evan Williams and Jack Dorsey are working on a revenue model and have brought in some help. In March, Twitter hired Anamitra Banerji, former director of ad marketing and management at Yahoo. Banerji will probably focus on how companies use Twitter and take a closer look at Twitter traffic.
According to Titter, traffic comes from SMS, instant messages, the mobile Web, and API projects. Twitter also generates Web traffic, 60 percent of it from outside the United States.
The company has also been working on Twitter's search functionality. Twitter search will be used to crawl links by Twitters to analyze and then index the content for future use. Currently, Twitter search is only used to search words included in tweets, but not words in links.
Buyers Interested
Along with its crawling functionality, Twitter search will get a ranking system. When users do a search on trending topics -- the top 10 topics people tweet about, which get their own link on the Twitter sidebar -- Twitter will analyze the reputation of the tweet writer and rank search results partially based on that.
The huge audience for Twitter and the massive amount of data collected have made it attractive to potential buyers despite its minimal revenue model. The company has attracted attention from Apple, Google, Microsoft and others, but Stone has said the company is not for sale.
Micro-blogging site Twitter has created a massive following with users tweeting about everything from Apple to Saturday Night Live. That creates a huge earning potential.
Because Twitter is free, the San Francisco, Calif.-based company has no subscription revenue and observers have believed the only way to profit would be from corporate advertisements. But Twitter cofounder Biz Stone says that won't happen.
At the Reuters Global Technology Summit, Stone said the company doesn't plan to use ads to get revenue. In the past, Stone has said Twitter is able to operate from the interest earned on the $55 million it has received in venture capital.
Ads Not 'Interesting'
"There are a few reasons why we're not pursuing advertising -- one is it's just not quite as interesting to us," Stone told the Reuters audience via a video link.
Twitter users have wondered for some time how the company will make its venture capitalists happy. One way was announced in March.
Here It Is...
Federated Media launched Web sites that pull together tweets on specific topics or by specific groups of people. The online advertising network brings in companies to sponsor the sites and will share the ad revenue with Twitter.
The first mini-Twitter Web site, ExecTweets, includes a collection of tweets from executives. The mini-site is sponsored by Microsoft. Another example is March Tweetness, with tweets about March Madness basketball tournaments sponsored by AT&T.
Stone said he and cofounders Evan Williams and Jack Dorsey are working on a revenue model and have brought in some help. In March, Twitter hired Anamitra Banerji, former director of ad marketing and management at Yahoo. Banerji will probably focus on how companies use Twitter and take a closer look at Twitter traffic.
According to Titter, traffic comes from SMS, instant messages, the mobile Web, and API projects. Twitter also generates Web traffic, 60 percent of it from outside the United States.
The company has also been working on Twitter's search functionality. Twitter search will be used to crawl links by Twitters to analyze and then index the content for future use. Currently, Twitter search is only used to search words included in tweets, but not words in links.
Buyers Interested
Along with its crawling functionality, Twitter search will get a ranking system. When users do a search on trending topics -- the top 10 topics people tweet about, which get their own link on the Twitter sidebar -- Twitter will analyze the reputation of the tweet writer and rank search results partially based on that.
The huge audience for Twitter and the massive amount of data collected have made it attractive to potential buyers despite its minimal revenue model. The company has attracted attention from Apple, Google, Microsoft and others, but Stone has said the company is not for sale.
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