Invisible advertisement: Revenue model in Twitter

Almost everyone saw the headlines these days about Twitter got a great start on New York Stock Exchange. As a successful social network, Twitter has its own way to grasp consumers’ hearts. For instance, Twitter has simple user interface with invisible advertisements which can compete with any other social networking and it is all its advertising models.

Four major advertisements occur in Twitter’s main page. First they advertise in Trend section, every first piece in Trend is advertisement with a little yellow arrow and for example, “#BlueberryOatmeal” is for McDonald’s. Secondly, they advertise in search page. Like other search engines’ ads system, it is run by the key words other companies bought.If Dove buy the keyword “meal”, the first result message will be Dove’s advertisement though it does not include the keyword you search. Thirdly, they have advertisement on Twitter’s timeline on the home page. Even you do not follow that user, it will still show in your home page. Nonetheless, everyone will only get once and it will disappear when you refresh your home page.Moreover, you can also click “dismiss” thus you will not receive any advertisements from this brand. Fourth, there are recommend brand you should follow in the sidebar.It is possible that people wondering whether it is ad or not, and yes, Twitter benefits from those companies which display ads that remind you of their brand.

From the news we know that Twitter’s ad revenue in 2012 climbed to 259 million dollars, maybe it is a good chance for other social network learning how to rebuild their revenue model.

Source: http://www.emarketer.com/newsroom/index.php/strong-2011-twitter-ad-revenues-grow-86-259-million-2012/
http://news.yahoo.com/twitter-ipo-live-twitter-stock-opens-73-pct-155351969–finance.html

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