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Twitter is notorious for it’s lack of business model, and Simon Dumenco from AdAge has written a really thought-provoking article about the service. I’ve always just accepted that if I’m going to be online, I’m gonna get advertised at. Maybe not tho…
Simon raises an excellent point when he says
But what if it’s not only too late, but it was never time? What if not everything that flits across our screens — computer or cellphone or whatever — can be contorted into serving as a profit center? As I’ve said before: I don’t think every tweet or blurp or bloop or fart that emanates from a human can or should have ads sold against it or be otherwise monetized. [source]
Now with the economy going sideways and the VC firms warning tech companies to slow their burn rate and batten down )
the hatches so as to weather the storm, some of our beloved social media apps may disappear. Being loved isn’t enough to get through the current rough patch.
Rafe Needleman wrote
Although well-used by many and even relied upon by some (like me), Twitter has yet to turn on a revenue model. It’s not like the company would lose users, if it set up a minor advertising strategy as a test; people want to see the company make some money. Please, Twitter, turn on the revenue before it’s too late. [source]
So, who’s right? Do you think Twitter is in danger of getting crushed under the fail whale? (image source: Yiying Lu)
Nice post Colleen … it’s interesting to read a different perspective on this.
I certainly don’t think that Twitter should monetize by way of advertising. I think advertising would ultimately kill Twitter off. Anyone who uses Twitter to promote themselves (myself included) know that you have to be very, very subtle about it.
Instead, I think monetization could be based around the huge loyalty of twitter fans. I think they would be a lot of people that are so hooked on Twitter, they’d be prepared to pay for it.
I guess something similar to the flickr ‘pro’ model could work, whereby paying users are given additional features AND the ‘badge of honor’.
I think that if Twitter users want to see Twitter stick around and improve, they should be prepared for it to be monetized. Besides, what’s wrong with that? Why shouldn’t they be rewarded for their hard work on what has turned out to be a pretty good application?
If people truly value the service Twitter provides, then they’ll sign up. As long is it’s a reasonable charge, I’m more than prepared to sign on, whether it’s a monthly fee or some ads.
If they want to keep a big user base, they can have a premium version with no ads and the free version with ads.
Colleen, I think most of us would agree that Twitter needs to be sustainable and needs a revenue model, just not one that tweets adverts. I’ll unfollow anyone who starts “magpieing” me.
I LOVE Twitter and sure hope that it isn’t a casualty of the terrible economy. I’d rather be advertised to than lose it!