Twitter’s New Advertising Model

Yesterday, November 1st, Twitter started to integrate a new advertising service into user’s Twitter streams. The company has explored advertising within the network before with Promoted Tweet and Promoted Trends, this is where the advertisement appears on top of a Twitter search; but what launched yesterday is a completely different sort of advertising.

The new advertising will appear like a regular tweet within someone’s stream, but will have a yellow tag displayed at the bottom that reads “promoted by [insert name].” The advertisements that appear will be based on what you tweet and who you follow. Right now, brands that are capitalizing on this new advertising service include Team Coco, Starbucks, and Redbull.

Hootsuite’s 175 million users will be the first to experience this sort of advertising; Twitter chose this third-party application for their test run, sharing what revenue they make.  Depending on its effectiveness, they will then roll this feature out to twitter.com and other twitter readers. Whether people like it or not, as a growing company, they need to make money, so inevitably, Twitter will develop a consistent form of advertising for its network. The only question is,  will this be it?

Personally, I’m excited to see the possibilities of advertising that will come from this medium.  I foresee lots of creative advertising, content that will likely be retweeted and passed around to other users – will brands offer discounts and/or promotions to users? If not creative and beneficial to the user, many Hootsuite users might switch to the Pro account so they can opt out of seeing these promotions.

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