Twitter held a successful initial public offering last week that raised $1.8 billion. Its stock price has since been climbing, implying a market capitalization of more than $24 billion. Twitter, which made $317 million in revenue in 2012, generates the majority of its sales through selling advertising packages directly to large companies and international brands. Like Google and Facebook, Twitter seems to now being actively pursuing small businesses to boost its revenue. Both Google and Facebook have cashed on the growing number of small businesses all over the world and their inability to pay big bucks for traditional advertising. Both have self serving platform for businesses to kickstart ad campaigns. Now, Twitter has the same. With its “promoted accounts” you can have “promoted tweets.” After being rolled out in US in earlier this year, now this service has gone to UK, Ireland and Canada. The company has said it intends to eventually roll out the program around the world. Analysts expect Twitter to make more than $1.1 billion in 2014 revenue, according to Thomson Reuters data.
India’s online advertising market is pegged to be 2,938 crore by March 2014 according a report published by the IMRB International and IAMAI and given the potential small and medium businesses present in India it will be not be surprising if we have promoted tweets in India very soon.
According to Twitter, “all you need is a Twitter account and a credit card to get started. You’re in control of your ads, the audience you want to reach, and of course your budget. Best of all, you will only be charged when people follow your Promoted Account or retweet, reply, favorite or click on your Promoted Tweets. You are never charged for your organic Twitter activity.”
What is your view on “promoted tweets”, look forward to your views.