Maximizing Revenue with Twitter
Investors and marketers have been agog over Twitter’s potential to wring revenue from millions of users, Kunz writes, “But the optimists better brace for disappointment.”
He sees four potential ways for Twitter to generate cash, but each has its limits. The service could ask users to pay — a difficult proposition since it’s already been established as free. Twitter could sell messages as product placements, but users would rebel. The company might mine market-research data from the intimate thoughts millions share through their Twitter “tweets,” but privacy concerns could quickly alienate users. Twitter’s most viable option for making money, Kunz says, is to sell ads around the world as it has in Japan — but even that potential is modest.
“It seems social media users are too busy being social to pay much attention to ads,” he writes. As poor results move ad budgets to other, more responsive media, “The social media value bubble will be pricked by reality.” —
This originally appeared in PRSA's Tactics and The Strategist Online and was written by Greg Beaubien.
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