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Having launched a suite of advertising solutions over the past year, Twitter has answered one of the questions that had previously plagued it: will the popular social media hub ever find a business model?
But now that advertisers are using Twitter to promote themselves and their products to its audience, there's a new and even more important questions: is it delivering a return? According to some reports, the answer is in many cases a resounding 'no.'
Twitter's new Promoted Tweets ad platform may be new, but it's already gotten top ratings from advertisers. Online investment brokerage Zecco announced Promoted Tweets has increased the company's engagement rates on Twitter by as much as 300%. Why is the company so pleased?
According to Zecco CEO Michael Raneri, it has to do with engaging Twitter users:
"I think it's one of the first online brand engagement opportunities out there."
It's interesting that Twitter took such a long time coming to the table with monetization plans. Because now it seems like the company is just coming up with as many strategies as possible to see what sticks.
Today Twitter made a push with two new services — @earlybird and Name Search. But the one that has the most potential for monetization won't be capitalized on by Twitter. At least for now.
Twitter, which for so long was criticized for its lack of a revenue model, is now firing on all cylinders as it looks to develop multiple sources of revenue. From Promoted Tweets to Promoted Trends, the company is no longer shy about trying to make a buck, and so far, Twitter users don't seem to mind.
One big reason: Twitter has done a pretty good job at making sure its ads aren't intrusive. And if it has its way, it might even make money while making Twitter users happier.
Twitter's attempts at developing a viable business selling ads are in full swing. Twitter's latest experiment in this area: paid trending topics.
As I write this, Twitter users will find 'Toy Story 3' in the list of Twitter's worldwide trending topics. But unlike the other trending topics, it has a prominent 'Promoted' image next to it.
What happens when Web 2.0 startups founded on principles of openness
and freedom grow up? If we're referring to Facebook and Twitter, the
answer is obvious: get a business model.
Unfortunately, finding a business model and implementing it successfully can be hard to do, especially when you previously invited third party developers to your 'open' platform and told them to keep the change. So it's really no surprise that Facebook and Twitter, which have collectively raised north of three-quarters of a billion dollars in financing, are finding it necessary to pull the good old bait and switch on developers.
After years of speculation, Twitter recently launched an advertising platform of its own. After nearly two months in the wild, some of the marketers who jumped on board to use it first are speaking out.
What they're saying is not entirely surprising: Promoted Tweets are wonderful.
Today Twitter is going live with its long anticipated ad platform. As we've already written, the ads will launch as a key-word based search product. But as Dick Costolo, the company's COO explained today at Ad Age Digital today in New York, Promoted Tweets will eventually appear in every user's regular Twitter stream.
How will the company avoid spamming its users? Twitter is hoping that a little measure called resonance will help.
Twitter will today officially announce the launch of a business model. After years of speculation, and skepticism, Twitter has decided to try its hand at the keyword-based advertising business model that built Google into a billion-dollar powerhouse.
According to the New York Times, Twitter's new ad offering, dubbed Promoted Tweets, will display ads that "show up when Twitter users search for keywords that the advertisers have bought to link to their ads".