Still twittering on about how to make money!
Monday, September 28th, 2009
Can Twitter make money?
The discussion on how long Twitter can last without making money has continued this past week after receiving a major cash boost from investors. The investment is reported to be about $100 million (£62 million) and secured from 5 investors.
Twitter a social media site which asks users to share and discuss what is happening right now has exploded over the last year and has become a major rival to sites such as Facebook and MySpace. With this popularity the question arose ‘How can it continue without a revenue source?’ as investments can only take you so far.
An indication that one way for Twitter to continue is with the addition of allowing advertisements to appear on the site after a recent change to the terms of service. Co-founder Biz Stone wrote on the Twitter blog “We leave the door open for advertising. We’d like to keep our options open,”. Biz had previously stated that the company has no plans to start to run ads until 2010.
If Twitter do decide to go along with advertising they can be encouraged by a recent report by ‘Interpret’. They surveyed 2000 social network users and found that 24 per cent of Twitters user are open to reviewing or rating products online, compared to 12 per cent of users of other social network. One in five will visit company profiles, and 20 per cent will click on ads or sponsors, versus 9 per cent of non-Twitter users.
If you are a Twitter user we would like your comments on if you would like adverts to appear on the site?
