As the tweets gone by, where did the money go?

Twitter has become an influencer in the way information is shared around the world. But while its immediacy, transparency and simplicity offer answers about all things both newsworthy and massive, one big question about Twitter has gone virtually unanswered: how it plans to turn a profit (?)

And that question then lead to another question whether Twitter ever have a Business Model (?)

Since 2006, Twitter has relied primarily on investments from backers like Fred Wilson, a VC and principal of Union Square Ventures. In its most recent round of funding, six investors, including T. Rowe Price, Insight Venture Partners in New York, and Spark Capital in Boston, reportedly pumped $100 million into the company, giving it an estimated $1 billion valuation (whatta number). (Source: CNN Money)

Clearly Twitter isn’t wanting for investors. But like all investments, there will come a day when those backers are chirping like a bird wanting for returns. Isn’t that obvious?

Well, thank god Twitter has gotten the hint. The introduction of Promoted Tweets and the roll-out of Promoted Trends marks the official kick-offs of its business model. Oh yay! Finally more than four years after Twitter first launched.

If you are wondering these two way of Twitter in generating profits. Let me explain. Promoted Trends is simple. On the right side of user’s Twitter feed, the traditional top 10 most popular tweeted topics, or “trends,” are now joined by an 11th, a time and context-sensitive subject that might rise up the list depending on its popularity. Disney/Pixar’s most recent movie, Toy Story 3, was the first such Promoted Trend.

Promoted Tweets are more targeted and are being rolled out in phases. As of now, they deliver sponsored tweets to search results. If you’re searching for tweets with the word “coffee,” for instance, a Starbucks Promoted Tweet resembling other posts appears at the top of the list. Though this is an Ad, the appearance will be likely the same with any other normal tweets. So, they are actually more like paid Twitter usage.

So then  yeah, after all the facts above, we can finally come up with a conclusion that the chirping bird (read: Twitter) is now making money! Yay! So here it goes the business model framework that i personally draw for Twitter. You can click the picture to enlarge.

So yeah! Congratulation Twitter! Monetization is just a matter of time for Twitter with the name of the company fast becoming verbs like Google is for search. Even all girls are now saying “I saw his tweet, and i start to wonder………….”

Oh shall i tweet this post? (Oh there you go mith! Twitter is so gonna be a verb! :p)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: