7 Comments

Summary:

After months and months and months of speculation, Twitter is finally unveiling its long-awaited business model. Starting tomorrow, the comp…

Twitter

After months and months and months of speculation, Twitter is finally unveiling its long-awaited business model. Starting tomorrow, the company will sell ads — called “Promoted Tweets” — that show up at the top of the results when a user searches on Twitter for a specific keyword. The ads, which themselves are Tweets, will only show up if they meet something Twitter is calling a “resonance score” — which factors in how often the message is being retweeted, as well as how many people are clicking on a link if it’s included. Advertisers get charged per thousand views — although Twitter says that eventually advertisers will be charged based on the “resonance score” of their promoted Tweets.

Is it

You’re subscribed! If you like, you can update your settings

  1. Zulfiqar Rana Tuesday, April 13, 2010

    When we kids, we wand to grow up. Now we are grown up and realize that wounded knees and broken toys were better than wounded emotions & broken hearts.

  2. Excellent looking forward to see this race along. If it works Google can complete the acquisition of Twitter and the game continues. http://www.youtube.com/watch?v=XT6b_jXsN6M

  3. Patrick Smith Tuesday, April 13, 2010

    There seems to be disconnect here: users will see the promoted tweets when they log in to their accounts? What about the millions of users who use third party apps like Tweetdeck and hardly ever log in to Twitter.com? Furthermore, how easy would it be for users of such apps to filter out sponsored tweets using Twitter’s own search API?

    I fail to see how the “1,000 views” cpm sales metric Twitter is offering can be managed when the most engaged and most valuable users connect with the service using bespoke software and not Twitter.com. Interestingly, Tweetdeck already has its own “recommended” tweets column….

  4. I think it’s finally time that Twitter grew up and made some changes to adapt to their huge growth. It seems that for much of their life, Twitter has been playing catch-up, trying to keep their heads above water as the site grew in leaps and bounds. During this time they made very few actual enhancements, beyond stability, and left the features and business aspect up to the 3rd party developers. Now that they are acquiring strategic companies, rolling out their ad platform, and potentially changing their feed timeline it feels they are being more proactive about their future growth.

    But clearly the biggest news here is their advertising scheme. They really need it to work in order to justify their outrageous valuations. I’ve put together a rundown of the ad program and whether the experts think it will work:
    http://thebusride.com/ride/twitter-ad-scheme-will-it-work-

  5. Brian John Mitchell Tuesday, April 13, 2010

    It’s interesting as I’m a Twitter user that never goes to the Twitter website. I guess the real question is how much are people willing to pay for CPM when it seems like CPC is the way most smart companies are wanting to work these days. It’s 2010, not 2000 & I think most folks are too hip to want to use this ad model, but then again with the high visibility of Twitter pennies can lead to millions quickly….

  6. @ Brian John Mitchell It isn’t that people don’t buy on a CPM business in 2010 it just typically isn’t this type of advertising. Also, Twitter will need to prove delivery of impression across their site and through ads that go through their API. I’m not ad serving whiz but that seems really, really difficult to do and I have a hard time seeing major advertisers buying on faith.

    The thing that makes ad sense (and others) so powerful is they have a solution for 100,000s of clients a budget levels from $100 to $1 million+. Most of those advertisers won’t buy on CPM.

  7. I’m sure there will be a shed-load of planner/buyers wading into this to try and show that they’re on the pulse and equally a load of advertisers blindly instructing their agencies to get involved.

    I agree with Pete, obviously the performace model opens online marketing to all but, like I said above, I think Twitter and Facebook are so in vogue with the marketers (I hate the term marketeers…reminds me of Dogtanion!) that there will be plenty of money to prove the concept and then make way for Twitter’s own ‘resonance’ pricing…whatever that may be.

    I certainly don’t agree with Brian John Mitchell, to suggest that cpm is a thing of the past or for advertisers/publishers that aren’t smart is not a well thought out comment.

    Patrick Smith – I thought that’s why the ads are in tweets..?

Comments have been disabled for this post