Twitter plans new advertising model

Reports emanating from the US suggest that Twitter is to launch a new advertising model in the first half of this year.

Friday, 12 March 2010

The intended format will closely follow that of Google's, as advertising will be tied to searches.

Adverts will appear only in search results, which means that users who have not conducted searches will not have them displayed in their Twitter streams.

According to the Wall Street Journal, adverts will follow the standard Twitter format of 140 characters or fewer and will be distributed by third party services.

It is stressed, however, that plans are still evolving, with a number of details yet to be decided upon.

Indeed, Twitter has been careful not to place its advertising revenue stream at the heart of its business, though research conducted last year suggests its users are among the most amenable to advertising.

The Wall Street Journal reported that Twitter users were more than twice as likely as the average internet user to click on advertisements or sponsors.

Consequently, although it is yet to be decided how marketers will buy and price the advertisements, it would seem that a business model predicated on online advertising holds the potential for a lot of profitability for the social networking site.

Twitter was valued in excess of £660 million last year.

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