Popular online micro-blogging Web site Twitter Inc. will introduce a new advertising platform to boost revenues, the company said on Tuesday.
The move will allay some concerns by some investors and technology analysts that have previously criticized Twitter’s business model and had doubts regarding its revenue potential. Twitter had long resisted a traditional advertising model.
Certain “promoted tweet” messages will begin to appear at the top of Twitter’s pages, the company said on its blog.
“It’s nontraditional, it’s easy, and it makes a ton of sense,” Creative Director Biz Stone wrote on the blog. To launch the advertising platform, promoted tweets from Best Buy, Bravo, Red Bull, Sony Pictures, Starbucks, and Virgin America will appear at the top of some Twitter search results.
Previously, “Stubborn insistence on a slow and thoughtful approach to monetization—one which puts users first, amplifies existing value, and generates profit—has frustrated some Twitter watchers,” Stone said.
Twitter, which began in 2006, allows users to post messages of 140 characters or less. While he closely held private company does not report financials publicly, Reuters reported last December that in 2009, it struck distribution deals with Google Inc. and Microsoft Corp. for about $25 million to make itself profitable for the year.
The move will allay some concerns by some investors and technology analysts that have previously criticized Twitter’s business model and had doubts regarding its revenue potential. Twitter had long resisted a traditional advertising model.
Certain “promoted tweet” messages will begin to appear at the top of Twitter’s pages, the company said on its blog.
“It’s nontraditional, it’s easy, and it makes a ton of sense,” Creative Director Biz Stone wrote on the blog. To launch the advertising platform, promoted tweets from Best Buy, Bravo, Red Bull, Sony Pictures, Starbucks, and Virgin America will appear at the top of some Twitter search results.
Previously, “Stubborn insistence on a slow and thoughtful approach to monetization—one which puts users first, amplifies existing value, and generates profit—has frustrated some Twitter watchers,” Stone said.
Twitter, which began in 2006, allows users to post messages of 140 characters or less. While he closely held private company does not report financials publicly, Reuters reported last December that in 2009, it struck distribution deals with Google Inc. and Microsoft Corp. for about $25 million to make itself profitable for the year.
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