After much confusion about how Twitter is or would make money from its every growing “community” we seem to have an answer that will be out pretty soon.
According to NY Times, Twitter will unveil today a plan for making money from advertising.
It was something that analysts had already predicted but none were certain how or what kind of advertising would twitter actually use.
Twitter has some details regarding the kind of advertising program it will offer which twitter calles “Promoted Tweets”.
The Promoted Tweets are to show up when related searches are done by users. Twitter already has many companies standing by including Best buy, Starbucks etc.
The companies or key words that are searched more often have been notified and they will soon join the bandwagon.
Twitter has almost 22.3 million unique visitors in March which is staggering and this number does not include the users who tweet using their mobile web applications. The Promoted Tweets are intended to monetize on this huge traffic and give twitter a boost in its revenue.
Until now having all this traffic was great but Twitter was slow to monetize on this traffic. Twitter does get some business by deals to stream its posts to search engines, this is a significant step towards an actual business model focussed constant growth.
Earlier twitter was to make money by selling a user’s account information to marketting firms and this model was heavily critisized. Twitter declared that it holds the right to do anything with the users information but changed that stand after user resentment.
May be twitter should follow apple, mark up stuff 120%.