Twitter lovers who love to tweet, but don’t particularly enjoy ads, beware. the social media company that you have come to love is changing. The company is moving into a new stage where ads are going to play a growing and important role, and you’re going to see more of them in your feed. You’re likely to be seeing a lot more of them over the next six months, and the barrage will begin in the next few weeks.
Twitter is looking for new ways to improve revenue, and that means that you’ll be seeing a lot more ads from the service in the future. According to an article in The Wall Street Journal, Twitter will be introducing 15 new types of advertisements over the next six months in an effort to attract new advertisers and increase their revenue. They are also planning on improving ways for advertisers to target users of the service.
Twitter has had a difficult time attracting mobile game and e-commerce advertisers because these advertisers make their advertising decisions based on the number of downloads, subscribers or sales they are able to obtain. One of the new strategies will be to encourage users to download apps through their twitter feed. By focusing on this area, the company hopes to attract increasing numbers of mobile-game and e-commerce companies to advertise on the Twitter platform. The launch will be similar to how Facebook as approached mobile advertising by including a “install now” and “shop now” button on their ads.
The key to the success of this new advertising effort will be to integrate the ads without turning off Twitter users. One of the things that has made Twitter as popular as it has been is the user experience and the relative lack of ads. There hasn’t been an an increase in the number of adds on the service for nearly four years when the company first introduced ads on Twitter in 2010. Without careful management of the number of display ads in user’s feeds, the experience could turn from social interaction to a pure advertising platform.
This move really shouldn’t come as much of a surprise. Twitter continues to have a problem with monetizing their platform. They managed to increase their revenue to nearly $220 million ($219.6) in the fourth quarter which is more than double compared to the same period last year, but the company still has failed to turn a profit.
The end result is still anyone’s guess, and depends heavily on how the company implements all the new advertising. There is certainly the potential that Twitter could lose its user focus, and becomes more of an advertising medium than a social interaction platform if they aren’t careful.
What does this mean for your personal finances? It means that you are likely to begin to see more opportunities to spend your hard earned money if you spend a lot of time on Twitter. Your likely to see more tweets encouraging you to download apps and to subscribe and buy things that you haven’t seen in the past. Their hope is to open up your wallet more so that they can finally turn a profit.