I was reading this post on mashable earlier, from one of my favourite tech bloggers, Jennifer Van Grove. It’s about a new ‘tweet notification’ feature that Twitter are planning to add, for people who use the Twitter website to tweet.
Twitter business model to include advertising?
This got me thinking. In recent weeks, Twitter has made a number of significant improvements to the functionality of the main Twitter website. Most recently we saw the addition of the superb Twitter Lists feature, but Twitter are ALSO working on a new retweet feature too. These improvements have one thing in common; they render web-based apps like Tweetdeck and (my favourite) Seesmic Desktop less and less essential.
Both Tweetdeck & Seesmic Desktop are superb apps, but they are also a lot more resource hungry, than simply using a browser to access the Twitter website. Now that users are able to get all the core functionality direct from Twitter.com, using their favourite lightweight browser – There’s less motivation for NEW Twitter users to bother installing the aforementioned Twitter apps.
The Twitter team are actively, suddenly doing everything they can to make Twitter.com stickier. Obviously, this keeps MORE new users on Twitter.com.
Here’s why I think these recent moves by Twitter are so interesting, from a business model point of view.
Twitter’s business model puzzle
One of the biggest challenges Twitter has had to deal with, is how to turn the popularity of the service into an effective business model. A big reason that this has been such a challenge, is that only a small percentage of tweets are sent via Twitter.com. As a result, Twitter gets just a small percentage of the ‘eyeballs’ it could have; rendering Twitter.com far less attractive for potential advertisers.
I believe the recent introduction of Twitter Lists, project retweet and now the new ‘updates’ feature, show that Twitter is focusing hard on developing a key part of their business model around advertising on Twitter.com. As I mentioned some time ago, Twitter users in some Asian countries already see small banner ads on Twitter.com.
Conclusion
Whilst many longer term users will want to stick with their favourite Twitter desktop apps, there’s less and less reason for new desk-based users to want to use them. This should see a significant increase in the number of people using Twitter.com and as a result, transform the site into a more attractive platform for future advertisers.
Very few users of Twitter are likely to object to ads, particularly if they are somehow targeted around the user’s tweets, so they are relevant. Maybe Twitter users with an objection, could opt to pay a fee to have these ads removed; like wordpress.com do for their users.
What do you think?
BTW: You can follow me on Twitter here @thetechnewsblog
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I did a blog post on this: http://bit.ly/30EDUB – Twitter is really trying to blow my theory out of the water
Interesting post, thanks for sharing the link. BTW: REALLY like your avatar picture.
I can’t say I fully understand the technology (actually, I don’t understand it at all!) but it always seemed bizarre to me that Twitter allowed folk to create these clients that took all the good stuff about their concept and ‘host’ it within a different app.
I’ve been a Tweetdeck fan since joining Twitter and I’m only just considering moving back to Twitter.com because of the list function.
This activity you’ve pointed out is serious back pedalling – and it was avoidable even without the benefit of hindsight.
Peter
I think Twitter possibly saw the development of apps like Tweetdeck as a useful tool for the heaviest Twitter users – which those guys could use to ‘spread the word.’
With the recent changes, I now use Twitter.com for 100% of my desktop tweets.
Thanks Pete.
Sorry to break the “bald avatar” mould but I aint shaving my head :P
So good points Jim, I have been reflecting on these moves myself and the significance of driving more people onto the twitter home site instead of utilising the service via Tweetdeck or Seesmic and it makes sense for them to want more people hitting the home page.
I think it will be a long time yet before these apps are rendered useless however, they just offer much better usability in my book which the website hasn’t nailed yet.
As for the ad stuff, as we have discussed before, I hope to god they ditch that idea or at the very least offer a subscription service which removes all adverts from your stream. If it was 12 bucks a year, I would pay it without hesitation and many more would as well I think, and 12 x 44 million accounts is a nice healthy sum in anyone’s book.
Firstly, get a hair cut!
I like the ad idea myself – so long as there’s a paid-opt-out option.
I think established users of the desktop apps will carry on using them, but fewer new users will see the need.
Cheers Justin
A very good article which raised some valid points. I have been somewhat surprised lately that Twitter.com doesn’t have ad’s but I like it. I think they should try and generate funds another way. I wouldn’t be too bothered with a few ad’s but I wouldn’t want the ‘clean look’ to get all muddy. I think Twitter.com is onto a winner with the new updates and never cease to amaze me.
The third party apps I think really make Twitter unique. I love the fact I can update Twitter from my phone app. I don’t think I’d use Twitter as much if I couldn’t update from anywhere, anytime with such ease.
Overall Twitter.com is doing really well to claw back its users to the website. I look forward to the new innovations.
@xxtomxx
Thanks Tom.
Even though I have (for years) been a BIG advocate of FriendFeed, as opposed to Twitter, I have to admit I see more value in Twitter today than any other platform. It’s great and it’s getting better.
The day I see an ad on Twitter is the day that I will sign off of Twitter. There should be an option to pay not to see ads. Ads suck. Ads, particularly animated ads ruin my experience of a site. I quit using MapQuest, because of an obnoxious ad that wouldn’t go away. I keep post-it notes handy, so I can cover the ads up. Otherwise, a site quickly becomes unusable.
I love TweetDeck. I only use Twitter.com when I absolutely must like when I’m thanking new followers for following.
Yes, Twitter needs a way to bring in money, so they can pay for more infrastructure and prevent fail whales, but advertising is not the way.
I understand your point and as you say they need to be able to make money from the site and all that traffic it will now get.
For me, so long as there’s a paid opt-out option for the ads, I think it will work.
If they get it wrong, I guess all we need to do is use seesmic or tweetdeck.