Online Now 2344

MSU Red Cedar Message Board

The largest and most active MSU Spartans board on the web

On this Board 1755
Record: 12118 (3/18/2012)

Online now 2399
Record: 10351 (3/11/2012)

Boards ▾

MSU Red Cedar Message Board

The largest and most active MSU Spartans board on the web

The Press Box

The place to ask questions to SpartanTailgate's recruiting experts

Duffy Daugherty Forum

"The Duff" is dedicated to Michigan State football recruiting discussion

Jack Breslin Forum

"The Bres" is dedicated to Michigan State basketball recruiting discussion

Wells Hall Off Topic Board

This is your pulpit to preach to the masses about everything from politics to religion

Marketplace & Ticket Exchange

The place to buy, trade or sell Michigan State tickets

Fantasy Sports Forum

For fantasy football and other fantasy sports discussion

Test/Feedback Forum

Reply

How does Twitter make any money?

  • More than 100 million active users.

    The bulk of their revenue supposedly comes from "sponsored messages and accounts", in which companies pay to promote their brands through users’ feeds and landing pages.Twitter has over 900 employees and the company is valued at over $8.4 billion. Their 2011 revenues were something like $130M, which is only a fraction of what Facebook pulled in last year.

    I've never seen an ad on Twitter's website and I've never noticed one of these "sponsored messages" in my feed.
    Given that many people use mobile devices with 3rd party apps to access their Twitter feed, even advertising on Twitter seems like it would have limited value.

    I see lots of major Fortune 100 companies using Twitter for their own marketing purposes, but I don't see how Twitter really benefits from this. Unless I'm missing something, I just don't see how Twitter can survive without a major change to their business model.

    Phil McCrackin

  • http://www.didyouwonder.com/how-does-twitter-make-money/

    locd32

  • Boobs! Everyone makes the money off the boobs!

    ColonelAngus ●

  • I see the "sponsored messages" every now and then. Twitter also uses "Sponsored Trending Topics" every now and then also. Most of them I have seen usually promote a movie or TV show though

    Edit: Titanic3D is currently a Sponsored Trending Topic right now

    This post was edited by SeptembrHeisman on 4/6/2012 at 2:08 PM

    tRMBC 1995-2010

    SeptembrHeisman

  • Advertising, advertising, and more advertising.

    PPTPW51983 ●

  • -PPTPW- said...

    Advertising, advertising, and more advertising.

    But definitely not in the "traditional" sense.

    locd32

  • -PPTPW- said...

    Advertising, advertising, and more advertising.

    Yeah, I get that. Their revenues are tiny for such a highly valued company.
    Facebook made like $4.2 billion last year. Their site is peppered with ads. You'd think Twitter would be more like that.

    Just seems strange that private investors are dumping hundreds of millions of dollars into Twitter, when their annual revenues are so small.

    Phil McCrackin

  • Phil McCrackin said...

    Yeah, I get that. Their revenues are tiny for such a highly valued company. Facebook made like $4.2 billion last year. Their site is peppered with ads. You'd think Twitter would be more like that.

    Just seems strange that private investors are dumping hundreds of millions of dollars into Twitter, when their annual revenues are so small.

    Who cares about revenue!

    Signed,

    Pets.com

    attachment
    signature image

    The Dude abides. I don't know about you but I take comfort in that. It's good knowin' he's out there. The Dude.

    His Dudeness

  • Phil McCrackin said...

    Yeah, I get that. Their revenues are tiny for such a highly valued company. Facebook made like $4.2 billion last year. Their site is peppered with ads. You'd think Twitter would be more like that.

    Just seems strange that private investors are dumping hundreds of millions of dollars into Twitter, when their annual revenues are so small.

    Twitter is up and coming. I find myself to be conservative on technology and I recently joined.

    It's a far better means of gathering information.

    There's a lot of potential with Twitter given localized results and advertising that coincides.

    PPTPW51983 ●

  • If you have to ask...

    Twitter's ability to reach and deliver is pretty amazing. And can be extremely cost effective...or expensive.

    mentalstate

  • mentalstate said...

    If you have to ask...

    Twitter's ability to reach and deliver is pretty amazing. And can be extremely cost effective...or expensive.

    Completely beside the point. Yes, it's a great way for company XYZ to reach a very targeted audience, but they don't have to pay Twitter to do it.

    I agree that it's difficult to see where they make their money and why they're valued as they are. It doesn't make economic sense, especially when whatever formal advertising space they have is so difficult to find/see/etc.

    Doctor Robert

  • Doctor Robert said...

    Completely beside the point. Yes, it's a great way for company XYZ to reach a very targeted audience, but they don't have to pay Twitter to do it.

    I agree that it's difficult to see where they make their money and why they're valued as they are. It doesn't make economic sense, especially when whatever formal advertising space they have is so difficult to find/see/etc.

    You fail to realize how much the demographics which have disposable income (teenagers and YUPpies) use Twitter.

    PPTPW51983 ●

  • Doctor Robert said...

    Completely beside the point. Yes, it's a great way for company XYZ to reach a very targeted audience, but they don't have to pay Twitter to do it.

    I agree that it's difficult to see where they make their money and why they're valued as they are. It doesn't make economic sense, especially when whatever formal advertising space they have is so difficult to find/see/etc.

    Company XYZ only reaches people that seek THEM out (ie you have to be following company XYZ in order to see their tweets). By paying Twitter a fee company XYZ can have a sponsored trending topic that all twitter users will see which could potentially lead to more followers and stronger advertising power. By paying Twitter this fee, company XYZ can seek out customers using a very large pool of consumers.

    locd32

  • Twitter is the best and worst thing to happen since the inception of Facebook. If you follow the right people and right companies, you will make yourself available to pertinent and useful information. But all the people who post what they ate for breakfast or that they are going to the store -- it's like a stupid Facebook status. Nobody gives a shit, so shut up.

    Twitter is best when news runs across the platform. But sometimes sports news comes across and journalists do it as fast as they can in terms of hits and being the first one to relay information, but that kind of ruins the ethics of journalism by not always being right.

    What is that, a Titleist? A hole in one...

    Cosmo_Kramer ●

  • -PPTPW- said...

    You fail to realize how much the demographics which have disposable income (teenagers and YUPpies) use Twitter.

    Again, beside the point. I have a certain amount of disposable income and follow some of my favorite companies/brands but I don't pay to do it and neither do those brands (yes, some probably pay for
    higher visibility it different ways, but not all).

    Doctor Robert

  • locd32 said...

    Company XYZ only reaches people that seek THEM out (ie you have to be following company XYZ in order to see their tweets). By paying Twitter a fee company XYZ can have a sponsored trending topic that all twitter users will see which could potentially lead to more followers and stronger advertising power. By paying Twitter this fee, company XYZ can seek out customers using a very large pool of consumers.

    That's an extremely flimsy marketing strategy, especially if people already know what they want to follow. I've used Twitter for quite some time and have never seen an ad or noticed a trending ___ related to a product or service.

    In general, Twitter is a vast wasteland of noise with very little promotional value. I have found FourSquare to be a much better promotional tool (I've checked in in places and gotten free food, drinks, etc. and have seen where American Express has a very visible and useful commercial presence. Twitter doesn't have that).

    Twitter's income and value is likely based in venture capital at this
    point. That's the best explanation I can come up with.

    Doctor Robert

  • Doctor Robert seems to be thinking the same thing I am.

    I understand the value of Twitter from a marketing point of view. There are companies out there using Twitter in really innovative ways and exposing their brand to an entire demographic that they might otherwise miss with traditional marketing. There are entire industries out there (think about mobile food trucks, for example) that wouldn't exist without Twitter.

    The problem I see from Twitter's point of view is that the vast majority of these companies don't pay Twitter a dime. It's free advertising. Bobs mobile food truck doesn't pay Twitter anything, yet every morning he fires off a few tweets about promotions, his location for that day, whatever... and they go directly to potential customers phones and it costs him nothing.

    I just don't see how Twitter can survive selling "trending topics" to companies like Starbucks and Home Depot. As if people give a shit about those companies on Twitter.

    "ohh look, Starbucks is trending on Twitter. I should go get a latte"

    Phil McCrackin

  • It doesn't. I have yet to arrive on the twitter scene and change the game.

    This post was edited by Spartan8Ball on 4/6/2012 at 4:35 PM

    signature image

    Spartan8Ball

Michigan State
247Sports
Features
Resources
Connect

247Sports In partnership with CBS Sports