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Web producer, writer, online media cultist. That's how I roll.

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Twitter is hugely popular, growing quickly, and has attracted lots of funding and worldwide buzz and all the other things a wildfire-on-the-way-to-greatness web start-up could ever hope for.

But how’s it ever going to make money?

That’s something that people have been discussing for a long time now. Aidan Henry, who I know from but is also now writing over at ReadWriteWeb these days (CongratsAidan!), today. In short, Aidan suggests doing contextual ads that run in Twitter feeds, an adwords-like system that auctions off ad space, or a tiered model with a free level of access and a subscription-level that allows people to get the site ad-free.

Personally, I like doing things simple and easy whenever possible. Although many people access Twitter through a mobile device or through applications like twhirl and twitterrific, there are large numbers who access it on the web, through twitter.com. Why not just put a leaderboard banner ad across the top of the page and perhaps a skyscraper ad underneath each person’s friends in the right column?

That way, each time anyone refreshes their page to receive new messages, and each time someone clicks around the site to browse, a new ad impression is created. Geotargeting or some other means of sending contextually relevant ads could further increase CPMs.

I think introducing ads into Twitter feeds could be a dangerous move. Even clearly labeling tweets as “sponsor messages” will annoy many people. It will also open the floodgates for more spam to be introduced. For example, if Twitter is sending sponsor messages, why can’t I send sponsor messages of my own? This could have an overall negative effect on what is currently a great and thriving and growing community.

Clearly these are all things that the people at Twitter are pondering. It’s a tough problem, adding a revenue model into the mix of an existing free service. I hope that Twitter can eventually figure out a system that works and does minimal harm to what is now a pretty special community.

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Date
May 9th, 2008

Author
Eric Berlin

Category

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  • Hey Eric,

    Thanks for the kind words :)

    I definitely think that Twitter needs to capitalize on its user base fairly soon, but it must be done in a very succinct manner. I acknowledge your idea of traditional advertising, although I think they can drive much higher CPMs and provide interesting, relevant ads if they leverage the context. It definitely is a potentially dangerous move, but I think it can be effective if done properly. And, at some point, Twitter needs to do something...

    Cheers,
    Aidan
  • I'm starting to wonder if they might be in danger of rolling out some sort of revenue model "too late." Twitter's profile is very high right now, so they don't have the luxury of tinkering (as much) as they may have had a year ago or even the beginning of the year.

    That said, a commenter over on your piece at RWW made an interesting suggestion about "tacking on" ads to existing tweets in the "free space." I wonder how much space there is to work with there?

    That said, I still think that unless the ads were very occasional, they would annoy people (and me) as the ads would be grouped into what people assume is a content space, as opposed to an ad space.

    Will be very curious to see what they come up with! Or who knows, maybe Google will simply drop $400 million on them or something and that will be that. ;-)
  • I think you hit the nail on the head with:

    "I'm starting to wonder if they might be in danger of rolling out some sort of revenue model "too late." Twitter's profile is very high right now, so they don't have the luxury of tinkering (as much) as they may have had a year ago or even the beginning of the year."

    Cheers,
    Aidan
  • That's why I think my very first thought about this today was: why don't they just throw up some banners already!? :-)





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