Twitter to Launch Ad Platform

13 Apr

One of the most frequently asked questions about Twitter since it became popular in 2008 has been “How will Twitter make money?” People have made across-the-board speculations, including selling out to Google or Microsoft, charging for business accounts and selling ads. It seems that Twitter’s first step toward fiscal solvency is to begin selling “promoted tweets”.

Mashable is now reporting that the first of Twitter’s Featured Tweets are live as see in the screenshot below courtesy of Richard Nevins and TwitPic:

For now, it appears that all Promoted Tweets will be located within Twitter’s search function. In effect, the promoted tweets work a lot like the sponsored ads you’d see in a search engine. Some big names are among the first to get involved with Twitter’s Promoted Tweets: Starbucks, Bravo Network and Virgin America.

I think this is actually a great way for Twitter to introduce ads, and try and generate some revenue, without seriously detracting from the platform. The fact that many of Twitter’s power users update and view their Twitter account from third-party applications like Hootsuite, TweetDeck and various mobile applications makes traditional banner advertising next to useless for Twitter.

Not only do search-related text ads make sense for Twitter, but they can be useful for users as well. If you’re searching Twitter for “coffee” and Starbucks’ Promoted Tweet is the first thing that pops up, it could remind you that a Starbucks Venti Americano is sounding really good right about now.

I have no idea exactly how Twitter plans to integrate Promoted Tweets throughout their site, but the real usefulness for this functionality is how it could align with mobile users. Say you’re visiting Indianapolis and you’re looking for a place to have some locally brewed beer. You type in “local beer” in Twitter’s search on your iPhone and Scotty’s Brewhouse has a sponsored tweet letting you know about their assortment of locally brewed beers. Wouldn’t that be great if Scotty’s Brewhouse purchased a Sponsored Tweet for the phrase “local beer” in Indianapolis? Geotargeting Sponsored Tweets would fit right with my recent posts on Foursquare. Only time will tell if Twitter heads in that direction.

Here are a couple of other great articles about the new Promoted Tweets program: