Twitter to bring more ads to users

2011-09-09 08:59
San Francisco - Expect to see more ads flowing through Twitter's stream of tweets in the coming weeks, but don't expect to read anything soon about an IPO from the online messaging service.

Twitter CEO Dick Costolo delivered that message in a Thursday meeting with a group of reporters at the company's San Francisco headquarters.

After bringing in more management talent and upgrading its service so it can handle big spikes in messaging, Twitter is ready to get more serious about building a successful business.

But Costolo said that goal shouldn't be interpreted as a sign that 5-year-old Twitter is poised to pursue an initial public offering of stock - a move that would require the company to reveal how much money it's making for the first time.

Twitter doesn't need the money because it just raised $400m from venture capitalists and other investors. With such a large financial cushion, Costolo indicated Twitter is unlikely to pursue an IPO next year.

"We now have what can only be referred to as a truckload of money in the bank," Costolo said. "We did that because we want to be in control of our destiny and grow the company the way we want to."

Addictive

The best way to do that, Costolo said, is to show more ads to Twitter's worldwide audience of 100 million active users. About half of those users log into Twitter each day, a sign that the service is becoming addictive.

Twitter is becoming such rich source of information and entertainment, Costolo said, that roughly 40 million active users log into the service without ever posting a tweet. This group of so-called "lurkers" just log in to read what's going among the people they are following or to search for something.

Even with so many users staying silent, Twitter says it processes about 230 million tweets per day, more than doubling its volume since the beginning of the year.

With so many people immersing themselves on Twitter, the company thinks the timing is right for more advertisements.

Not alienating its audience

Twitter began showing ads last year, but limited them to promotions from companies that users had chosen to track. Now Twitter’s users will gradually start seeing ads from companies they aren't following.

In an effort to avoid alienating its audience, Twitter will strive to show ads likely to appeal to each user's interests. The company thinks it can do this by analysing who users follow.

For instance, a person who follows 30 different professional athletes might be more likely to see ads about sports equipment or apparel.

All ads, known as "promoted tweets," must comply with Twitter's online messaging service's 140-character limit.

Twitter is expected to generate about $150m in ad revenue this year, up from $45m last year, according to the research firm eMarketer Inc.
- AP
Read more on:    twitter  |  us  |  social networking
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 

Joburg hot spots for cocktails, craft beer, tapas and wine!

It’s the season to be jolly – so we’ve rounded up some new Joburg hot spots!

 
 

I love summer.24

The craziest deaths of 2014
How to make this a sensual, sexy summer!
This is what South Africans Googled in 2014!
This hilarious song is your new holiday anthem

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Kalahari.com - shop online today

2DAYS ONLY – 30% off Appliances

Coffee makers, blenders, fans, juicers and more. T&Cs apply. Shop now!

2 DAYS ONLY – 40% off books

Get 40% off when you buy 2 books. For two days only! T&Cs apply. Buy now!

Up to 50% off on outdoor gear

Save on chairs, blankets, cooler bags, umbrellas and more. Shop now!

Save on Samsung

Cameras, mobile phones, TVs, Tablets and more. While stocks last. Shop now!

Grand Theft Auto 5

Now available on PS4, Xbox One and PC from R649. Buy now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

You may be emotionally defensive or reserved today. You need to step up today as there may be extra responsibilities to deal with....read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.