Maximizing Revenue with Twitter


A series of recent moves by Twitter suggests the micro-blogging service is running into trouble with its business model. As columnist Ben Kunz writes in BusinessWeek, when Twitter launched in Japan in April, users saw a banner ad across their home pages. On Aug. 7, the company limited the number of people a single user in the United States could connect with, to about 2,000. And on Aug. 14, Twitter tried to cut costs further by killing outbound message delivery to mobile phones via short messages, in all countries except the United States, Canada and India.

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.




Comments Off

Deals of the Week

Get $150 Off PR News'Crisis Management Boot Camp

Crisis_Boot_banners_175x135_ep

Join PR News on September 15, 2014, at the historic Yale Club in New York City for an intensive boot camp will put you through the paces of crisis communications to help you avoid, or at least mitigate, the damage that can come to a brand.

Use code “150off” at checkout.

Get $50 off PR News' Media Relations Guidebook

book-mediarelations-180x150

This 8-chapter resource contains practical implications for some of the most innovative developments in media relations, including the technologies, methodologies and mannerisms that determine the ecosystem in which PR pros practice this essential part of their craft.

Use code “50off” at checkout.

Save $100 on a PR News Subscription

Let PR News become your weekly, go-to resource for the latest PR trends, case studies and tip sheets. Topics covered include visual storytelling, social media, measurement, crisis management and media relations.

Use code “SUBDEAL” at checkout.

Comments are closed.