It was only a matter of time…Twitter to roll out advertising
The profit model for just about any website revolves around ad dollars. The more viewers a page has, the better their chances get that companies will start paying to reach its users. When you have one of the most wildly popular sites with a cult-like following, chances are you stand to make millions, which is exactly what Twitter is hoping for.
By now, you’ve probably seen them. Twitter started unveiling the first ads last Tuesday with companies like Starbucks, Virgin America and Best Buy as the first to test the waters. To start, the ads were rolled out to 2%-10% of users, then that number would begin to increase. Initially, Twitter ads will appear at the top of user searches, but over time, they may actually appear in the stream of posts users see when they login.
Advertisers and users have been waiting for this day as past reports have stated that Twitter Chief Executive Evan Williams has been hesitant to offer advertising for fear of annoying users (as if Twitter can get any more annoying). Advertisers have been doubtful that Twitter could derive an advertising model to compete with Google, but nevertheless they will try.
According to the Wall Street Journal, “Twitter’s ad-matching and pricing formula is a work in progress. The company will start by charging marketers per thousand impressions of their ads. Over time, it plans to move to a more complex model, charging based on how users interact with the messages. The Twitter spokesman said it will not show ads that don’t receive a certain “resonance” score, based on factors like how many people clicked on or forwarded the ad.”
Only time will tell how well this advertising model will work. My opinion is that it is going to be incredibly successful or flop miserably. There will be no in between.
Posted by: Lauren

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