Twitter Has To Scale The Signals

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Twitter Does The Deed: Ads
Twitter Acquires Tweetie: The Drama
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Twitter Needs To Eat Into Its Ecosystem

If I have five friends, and all of them are on Facebook and all of them have my number, and we party every other week, we are talking. But what if I have 500 friends? What if I have five friends and 5,000 fans? What if I have two friends and 20,000 online contacts? What if I am being followed by 50,000 people? What if I end up with five million followers?

Twitter has to make sure that at no point do the signals turn into noise for me. At no point should I get overwhelmed. I might have 500,000 followers, and if all of them tweet me, I should still be able to hear what they are saying. (Twitter Visualization: Reading Many Tweets At Once)

The power users will tell you, if you really want to make the best of Twitter, you got to wade into the ecosystem and find all the right apps for you. I am cool with that suggestion, but Twitter should not be. If Twitter envisions a billion users, as it should (Goal: A Billion People On Twitter April 2009) - heck, I think Twitter could beat Facebook to that magic number, but not the Twitter of today - then Twitter has to make sure all the action is at Twitter.com. Twitter bought Summize, Twitter bought Tweetie, it could easily buy 20 more such companies today. Buy or build, buy or build, buy or build.

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Twitter Does The Deed: Ads

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Netizen, June 2009: Monetizing Twitter: A Few Ideas
New York Times, April 12, 2010: Twitter Unveils Plans to Draw Money From Ads

....finally answering the question of how the company expects to turn its exponential growth into revenue.....Promoted Tweets....in the stream of Twitter posts, based on how relevant they might be to a particular user.....Twitter.com had 22.3 million unique visitors in March, up from 524,000 a year ago.... the first significant step toward a business model..... and when someone rolls over a promoted post with a cursor, it turns yellow. .... chatter on Twitter can forecast box-office revenue for movies ....“Media like Twitter and Facebook are so enormous that it’s very hard to imagine it would be easy to manipulate the conversation.” ...... Twitter will measure what it calls resonance, which takes into account nine factors, including the number of people who saw the post, the number of people who replied to it or passed it on to their followers, and the number of people who clicked on links......Once Twitter figures out how to measure the number of people who read posts other than on Twitter.com, it will also allow third-party developers to show ads and share revenue.

"....and when someone rolls over a promoted post with a cursor, it turns yellow...."

That color coding was an idea I had promoted at my blog. The tweet ads have to look different from the regular tweets, obviously different. And color coding is the best way to achieve that.

Google did not do banner ads like Yahoo. Similary Facebook could not do Google ads. And Twitter ads have to be specific to the Twitter platform. Tweets are it.

Resonance. I like the term.

Twitter has taken its first big step in the monetization department. This might be the only step necessary. They could spend a few years just getting this one right and scaling it. Ultimately the process has to be automated just like for the Google ads. Most of the money will come from small businesses targeting locals.

Now I am going to bug Twitter a little less about going IPO, just a little less. It could now take its sweet time.

Twitter Needs To Eat Into Its Ecosystem
Twitter Should Go For A Netscape-Like IPO

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