Twitter recently announced that it is considering displaying advertisements on profiles as a source of ad revenue. Even though I believe there is really no money in displaying ads and Twitter should try other revenue models, I still think they can at least pay their office rent.
According to an article published in Montreal Gazette in May 2009, Biz Stone didn’t really want to display ads but instead wanted to create revenue generating tools that could be used by both businesses and individuals. Here is a Quote:
Twitter co-founder Biz Stone said on Monday that the company is developing various add-on tools and services for the businesses and professional users of Twitter, which could create a revenue stream for the company. He said Twitter plans to introduce some of these tools by year end.
Now it didn’t really work out that way, he instead is going along with the status-quo. Twitter posted a new blog post titled “Does Twitter Hate Advertising?” explaining what it really means and that it is looking at all the possibilities.
Maybe the investors were not that happy with Twitter’s notion of let’s not annoy our users by sneaking advertising on their Twitter profiles. Even though I am not a fan of corporations dictating social media, I have to agree with the investors. Geekiness aside, Biz Stone also needs to think about making money. I love the fact that he understands Twitter users and I respect that but I want Twitter to survive and thrive.
Inserting ads on Twitter pages is the easiest way to make money for Twitter right now. They are following the Facebook approach which is not a bad strategy. Small, non-intrusive text ads on the right hand side of the Twitter page underneath the description sounds like a good idea to me.
What do you think about this? Considering the fact that Twitter just confirmed today that it received another round of funding, they don’t disclose it but it is around $100 Million. Don’t these investors want to see any ROI?
Photo by Anne Hamersky