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India On Media |
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| Technology
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| Twitter's big challenge: |
| Twitter's big challenge: grow ad sales within 140-character format
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| UNITED STATES OF AMERICA
, 5-October-2013
6:27:59 AM |
| Once Twitter enters life as a publicly traded company, it will have to satisfy Wall Street's demands for constant growth.
So get ready, Twitter users: You are going to see more ads in your message stream, especially if you live overseas.
You may also see Twitter become more like a flash-sale site, with offers to buy products appearing in your message stream along with a way to buy them with a quick click or tweet.
In documents filed Thursday to inform investors ahead of its initial public offering of stock, Twitter noted that it had been greatly expanding its inventory of advertising slots, especially for promoted tweets, which are sponsored messages that use the same format as the 140-character postings, or tweets, that are the core of the service.
The company, based in San Francisco, said that across its base of 218 million users, the average person was checking the service more frequently - about 230 times a month, compared with 197 times a month a year ago. And users are also interacting with more ads.
But Twitter revealed that it had also significantly increased the number of ads it sells, and prices for those ads have fallen. The company said it believes cheaper, more targeted ads will draw in more advertising, more than making up for the price drop.
So far, the strategy seems to be working - the company said advertising revenue had more than doubled in the first six months of this year, to $221 million, compared with the same period last year.
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