Twittering All The Way To The Bank!

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So-called "Promoted Tweets" will appear when people search for particular terms. Only a single sponsored Tweet will appear alongside search results. The Tweet will appear as long as it demonstrates "resonance" with the audience by being clicked or re-Tweeted. Twitter doesn’t plan to charge companies whose sponsored Tweets don’t generate high resonance. Presumably Tweets with high resonance scores will pay price premiums.

The above is an excerpt from Scott Anthony’s article Twitter Ads Add Intrigue – Scott Anthony – Harvard Business Review on Twitter’s business model.

So sponsored tweets not only have to appear in search results but also resonate with the intended audience! What does this mean? This seems a bit like a tweak on Google‘s page rank algorithm where search results are similar to reverse auctions i.e. the more links to your page , the higher ranked your page or post is. Here resonance = the no. of re tweets + no. of views. To put it mathematically!

This is the just the first step that Twitter has taken to create some sort of revenue model for its business. Will it work? Only time will tell but yes, there is potential and the fact that ads that don’t resonate will not be charged for reminds us that businesses that hope to build on social networks should not forget how easy it is to lose sight of the fact it was this very social web that drove traffic to the site and losing the touch of authenticity will not only appear unethical but will also cause disillusionment in its human capital (to stretch a definition)!

Have a great day!

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There are more of them than us
. - Herb Caen
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I am an IT professional with over 12 years work experience. I am also a part-time blogger and currently a CFA candidate.

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