Archive for September, 2009

Eight Ways Twitter Could Make Big Money

Tuesday, September 29th, 2009 by Harry Gold

The big news: Twitter is raising another $100 million on a valuation of $1 billion! Well I guess that seals it. Twitter is in it for the long haul, declaring its intention to remain a freestanding media company.

But as Bloomberg News reported, “Twitter has yet to report any significant revenue.” So how can it justify that kind of valuation? Let’s put it this way — remember when Google had yet to report any significant revenue?

Twitter attracted 25 million users in August, compared with 2.2 million a year earlier, according to Nielsen. With that kind of groundswell and large database of registered users, the opportunities for highly targeted contextual, demographic, geographic, and behavioral advertising is huge. Twitter could monetize in ways that would be non-intrusive.

Twitter has reached a point where there aren’t many alternatives to the micro-blogging platform. While it’s not impossible for one to emerge, it’s unlikely. People are pretty much wedded to Twitter, plus there are so many complementary applications in use on desktops and mobile devices around the globe. It would be difficult to topple Twitter off the top of the heap anytime soon.

Then there are fears about injecting advertising into a media environment that people enjoy. I always hear, “Well, people don’t like advertising,” or “We did a poll and people said they did not want to see ads.” If you asked television viewers if they wanted to see ads during their favorite show, close to 100 percent would probably say “no.” Now conversely if you asked people if they preferred to have their favorite show with ads or not having their show at all because there was no funding, close to 100 percent would probably take the show with the ads.

The same goes for Twitter. Of course, no one wants it cluttered with ads. But if there were only two choices — Twitter with a way to stay in business or no Twitter — the vast majority of us would choose Twitter with a way for it to stay in business.

The same thing happened with Google, YouTube, and Facebook. Even YouTube has pre-rolls running on certain premium partner channels and I haven’t heard of any huge consumer backlash.

So, I started to think of the different ways I’d monetize Twitter if it were my site. And that includes programs that I’d find valuable as a media buyer.

Read more…

Social Media Weekly Buzz

Thursday, September 24th, 2009 by admin

Twitter and Myspace have teamed up to beat Facebook to two-way Twitter sync, this coming shortly after Facebook rolled-out a feature for page admins to post page status updates simultaneously to their Twitter feeds. The micro-blogging service will soon also be launching a location platform that will be integrated within the API, and will allow users to opt-in at choice. Also, beware of hacked accounts and unusual direct messages, as a recent worm has been quickly infiltrating the Twitterverse.

Also this week, the FCC pushed for net neutrality with the launch of OpenInternet.gov on Monday, while Nielson and Facebook have joined teams to help businesses better measure ROI from ads featured on the social networking service. A recent survey finds social media is most accessed while at work and while in the restroom, and will we soon be seeing a harmonization of social media and phone calls?


  • Myspace beats Facebook to Two-Way Twitter Sync – Myspace will now allow users to synchronize their Twitter and Myspace updates using the Twitter OAuth service. While Facebook currently allows individuals to post status updates on Twitter, and Twitter offers an app to push updates to Facebook, there is a lack of any simultaneous syncing among the services. Will Facebook soon follow suite and offer a comparable feature?
  • Twitter to Soon Feature Location Functionality – While current mobile applications such as Ubertwitter offer location based features for mobile Twitter users, there is yet to be a geolocation feature built directly within the Twitter API. This is soon to change with the release of Twitter Local, which, if a user chooses to opt-in, will assign a longitude and latitude to each of their tweets. Ever wonder what your next-door neighbor was tweeting about?
  • Twitter Worm On the Loose: Login Information at Risk – A rather convincing worm has been spreading throughout the Twitter world through direct messages from infected friends. The phishing scam attempts to steal login information through a cleverly disguised Twitter landing page. Mashable did alert Twitter to the threat, and the service is quickly taking measures to stop any future distribution.
  • FCC Pushes for Net Neutrality – The FCC launched on Monday a website promoting web neutrality. In a nutshell, this important development should help to keep the Internet free and open, and is targeted at discrimination by Broadband providers in particular. This important act should help sustain users’ freedom in deciding which applications and services they wish to use.
  • ROI Soon to be More Easily Measured on Facebook – A recent study featured on our Stats Blog noted that 84% of businesses do not measure the ROI of their social media programs. Nielson and Facebook have teamed up to offer a better way to gauge ROI through a new product called Brand Lift. Ad measurement will be improved by showing viewers a poll after viewing the ad on Facebook. The responses will be compared to those who haven’t seen the ad, with the data then being distributed to advertisers in a succinct report.
  • Survey Says: Social Media Most Commonly Accessed from Work – A study published this week by Crowd Science explored and compared the usage patterns of Twitter users to that of users of other social media services. While the trends in general mirrored each other, there were some interesting differences. Twitter users were much more likely to access the service from work, from the toilet, and from a car. These findings could have potentially dirty and deadly consequences respectively.
  • Social Media and Phone Calls Collide – It looks as if the phone call will soon be getting a facelift thanks in part to social media and an iPhone app called CallSpark. The app will pull social media information from Facebook, LinkedIn, Salesforce, and Twitter and display this info while you call a friend. In addition, CallSpark can also act as a search engine for phone numbers, utilizing whitepages, yellow pages, Facebook, and Salesforce. GPS will help to rank the results to make sure you are receiving the most accurate information.

Facebook, which seemed to be ahead of the game with its integration of Twitter support, has just been jumped over by Myspace, a social networking service that until recently had been making very little noise. The two-way synchronization will allow users to update their Myspace status from Twitter, and vice-versa. Not only is this a way for current Twitter users to revitalize their deserted Myspace accounts (if they ever had one in the first place), but it may also encourage current Myspace users to make the jump to Twitter, or at least test the waters. Either way it’s a win-win situation for both services, and leaves Facebook in the dust.

The survey conducted by Crowd Science leaves us with some interesting, and scary findings on the usage patterns of social media users in general, and Twitter advocates in particular. In terms of location, Twitter users are more apt to access the service in all categories except during a class or lecture. The frightening statistic is that many Twitter users post updates while driving in the car. With all the recent news about texting and driving, it’s hard to believe usage levels are still this high. On the other hand, tweeting in the bathroom is also quite popular, and one that might make you think twice before using a friend’s phone. One notable find is the fact that many Twitter users have only been on the service for less than 6 months, most likely due to the micro-blogging service’s significant growth as of late.

US Mobile Advertising to Increase 388% by 2013

Wednesday, September 23rd, 2009 by admin

Spending on advertising and marketing within mobile channels has historically lagged behind overall mobile phone usage and adoption rates. According to eMarketer, however, this trend is set to change over the next four years, with steady growth expected for this still developing industry.

eMarketer predicts a 30% increase in marketing and advertising expenditure for 2009 with total expenditure rising to $416 million. A positive overall long-term outlook held by many marketing experts in the mobile industry places total advertising outlay at $1.56 billion by 2013, an increase of about 388% from 2008.


Broken down by format, eMarketer expects Search to experience the most growth, jumping from 18% advertising spending share in 2008 to 37% in 2013. Messaging, on the other hand, is predicted to lose its currently prominent share of expenditure, dropping to only 28% in 2013.

Display is also expected to see growth, though by far not as drastic as Search, only taking on a 13% larger ad spending share over the next four years.

Source: eMarketer, September 23, 2009