Business in dialogue

Twitter has recently unveiled a number of advertising opportunities for marketers that are looking for new ways to reach out to their target customers. The website, that is used by 175 million users, offers three methods of advertising: 1) Promotion Tweets (that allow you to post tweets that can be seen by people who don’t follow you), 2) Promoted Accounts (that will show up in a user’s “Who to Follow” section on their Twitter homepage) and 3) Promoted Trends (that allows a company to place their product on top of the Twitter Trending List). (sourse: onlinebusinessblog)

Market research firm eMarketer expects Twitter to triple their advertising revenue this year up to $150 million and believe that most of this money will come from US companies. For the next year, they predict as much as $250 million in advertising revenues.

It is fair to say that there is a new titan is entering the battle field, competing with Facebook (550 million users) and MySpace (?). The last mentioned topped Twitter’s advertising income with $184 million, but are clearly struggling with decreasing revenues. Projected advertising sales are $156 million next year, versus $288 million this year. This lead to layoffs of about 50% of their workers worldwide on the grounds of efficiency.

Facebook has reached the position of most visited website but feels the competitors breath in their neck. They too are still trying to figure out what businessmodel works best for them by trying out new ways of advertising, such as sponsored stories.

Let’s see who plays the game the best and wins the advertisements in the long run.

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