Twitter Plan to Introduce Advertising within the Most Popular Streams

Twitter already gain enough revenue to stay afloat despite the 300 million registered users on their site. The comapany is now looking at introducing advertisements among the short messages that users see in the most active part of the social networking service, according to people with direct knowledge of its plans.The move comes as Twitter […]

Twitter already gain enough revenue to stay afloat despite the 300 million registered users on their site. The comapany is now looking at introducing advertisements among the short messages that users see in the most active part of the social networking service, according to people with direct knowledge of its plans.

The move comes as Twitter looks at a wider range of options to generate revenues from a service that has so far failed to make money from its audience as effectively as rivals such as Facebook. Twitter have been pushing for new ideas as to how to increase their profit margin. The site already uses the 'Promoted Trends' model which costs $120,000 per day, but it was only recently $25,000 to $30,000.

Financial Times citing some people with direct knowledge of its plans, that the "Twitter's plans under consideration would see "promoted tweets" appear in their main timeline, the main focus of the Twitter website. Twitter had tested such ads with a third-party mobile client, HootSuite. Users could also see tweets from a brand they follow appear high up in their stream even though they were posted hours previously. The introduction of a "QuickBar" in Twitter's iPhone software, which prominently displayed promoted trends in the timeline, prompted an uproar from users earlier this year, forcing Twitter to remove the feature."

Back in March, Twitter said: "We are always talking with marketers about ways they could potentially get more out of Twitter. Some of these discussed concepts may materialise; others will not."

Twitter is expected to generate revenues of about $100m this year, compared with Enders Analysis' forecast of Facebook's $3.5bn from display advertising alone.

[Via: FT.com]