Twitter’s Ad Plan: Copy Google
What will Twitter’s long-awaited ad platform look like? Something like Google’s.
That’s the general description of Twitter’s plan, according to people who have been briefed by the company.
Here are the very broad strokes:
- Ads will be tied to Twitter searches, in the same way that Google’s (GOOG) original ads were. So a search for, say, “laptop,” may generate an ad for Dell (DELL). The ads will only show up in search results, which means users who don’t search for something won’t see them in their regular Twitterstreams.
- The ads will use the Twitter format–140 or fewer characters–and will be distributed via the third-party software and services that use Twitter’s API. The services will have the option of displaying the ads, and Twitter will share revenue with those that do.
- Twitter will work with ad agencies and buyers to seed the program, but plans on moving to a self-serve model like Google’s, down the road.
The caveats: Everyone I’ve talked to cautions that the plans are evolving and that there are plenty of details to work out. Including a launch date, though it seems as if the first half of this year is a very safe bet.
But at first blush, this seems like a relatively straightforward way for Twitter to get into advertising, without upsetting its growing user base: You won’t see the ads unless you use Twitter to search for something, and Twitter’s advertisers will have at least a vague idea of what you’re interested in.
There are lots of gritty details that Twitter either hasn’t worked out or hasn’t disclosed to the people I’ve talked to. For instance:
- How will advertisers buy and price the ads? Will they use a Google-like cost-per-click model or something else?
- Twitter searches are popular, but very crude. Can Twitter refine them to make them more useful to users?
- Google’s ads work because Google has reasonably good idea of both users’ intent and identity. Twitter knows much less about its users. How can it gather enough data to make its targeting more meaningful?
Twitter has been careful not to position its ad plan as the core of its business. And the company has made a point of stressing that its initial ad rollout, like other initiatives it’s launching this year, are merely “tests.”
That’s one of the of ideas behind the $100 million funding round Twitter closed last summer–it gives the company the time to play around with different business models. But this one seems to have plenty of potential.
Comments
I for one will be interested in trying out a few advertisements with them, or should I say, i would like to try and twitvertise my business with them. Social media seems to be good for generating web traffic right now, and good for branding and awareness I think, but if it leads to solid sales remains to be seen for many i think. Chris – Gardening Express
Posted by gardeningexpress at February 26th, 2010 at 6:12 pmTo see a similar implementation already running, check out 140 Proof, which displays tweetlike, targeted ads in timelines on 3rd-party apps. There's a self-service option to buy, also. http://140proof.com
Posted by vnaylon at February 26th, 2010 at 6:29 pmYou ought to ID yourself as a company employee when you promote a product in the comments.
Posted by PKafka at February 26th, 2010 at 7:54 pmYou're right, sorry about that. I work at 140 Proof. I think it's great! :)
Posted by vnaylon at February 26th, 2010 at 7:55 pmI wonder what sort of volume search accounts for vs. a user's stream. I would guess it's not so large. If so, that would be one more hurdle to serious monetization.
Posted by Club Texting, Inc. at February 26th, 2010 at 8:16 pmVery promising here, perhaps AdWords lite, difference being that Twitter's content is 100% user-generated on the site itself and google's is generated elsewhere, privately. Same principles with the ads though, and with 75 million users on Twitter it must be exciting for them.
Unrelated, if you happen to be in the logistics & supply chain industry check out Logjobs…http://logjobs.com
Posted by Tom McKenna at February 26th, 2010 at 10:53 pmRegarding what information Twitter has about its users, note that it started this week asking users to fill out more detailed profiles, including their location.
Posted by mediagrunt at February 26th, 2010 at 10:55 pmThey should think of bidding on sponsored twitts as well. SponsoredTweets posters are making a killer. Some charge 11k for one tweet.
Posted by gubatron at February 27th, 2010 at 1:54 amgood to know… good for them…as it can be very targeted and reached…
Posted by yeahgadget at February 27th, 2010 at 3:24 amWhile it is smart to use a Google-like model for ads in the search interface I think a Facebook engagement ads like model in the regular twitter interface that allows advertisers to target users to follow the advertiser's Twitter account would be very beneficial.
Posted by Anthony at February 27th, 2010 at 10:32 pm“Google’s ads work because Google has reasonably good idea of both users’ intent and identity. Twitter knows much less about its users. How can it gather enough data to make its targeting more meaningful?”
Posted by Valy at March 1st, 2010 at 10:28 amTargeted marketing, or artificial intelligence at work !
Google is using text analytics, Twitter something like keywords or tags !
Two problems there:
Posted by PKafka at March 1st, 2010 at 1:47 pm1) Keywords and tags only work if users use them in the messages they send. Entirely possible that I'm interested in cars, or laptops, or whatever, but that I don't tweet about it.
2) Bigger problem: Most Twitter users are readers, not writers.
If ads aren't the “core” of a free service like Twitter's business model, then what is? Armed robbery? Extortion? Counterfeiting? Moonshine? Bottomless pocket sucker VC's where no revenue is in sight are getting kinda hard to come by these days.
Posted by PurpAv at March 4th, 2010 at 3:53 amI like the way you think. I have absolutely no problem with Twitters new advertising module. As for whether or not I'd be willing to shell out to try it, I'll need to see some stats from companies that have used it successfully first.
Posted by Web Development Company at March 4th, 2010 at 5:11 pmi hope it does not pump up the privacy issues
Posted by Bytebuzz at March 7th, 2010 at 6:16 pmRegarding the “Google’s ads work because Google has reasonably good idea of…” comment.
How does this help advertisers? When you bid on a keyword with AdWords, you're simply saying, I'd like to place my ad here when this word comes up based on these criteria: keyword and match level (broad, exact etc.). Google's knowledge of your search history and other web activity from your Google account doesn't, to my understanding at least, play a part. What other users have clicked on does, but that's a part of their auction system and something Twitter could do as well. Essentially, show more relevant ads based on previous searchers' preferences.
Google's knowledge of your intent has everything to do with what they show you in the organic search results, not what ads a potential advertiser is going to place. In that respect, Twitter's option could be quite similar.
Now, the actual use case for Twitter search is a bit more dubious when compared to Google (secondary vs primary activity of the service). So, will Twitter get enough traffic that advertisers care about? That's more of an interesting question and debate.
Posted by Latham44 at March 17th, 2010 at 9:59 pmThey should have done this a year ago.
Posted by paramendra at March 25th, 2010 at 7:09 pmhttp://technbiz.blogspot.com/2010/03/measuring-...
Posted by paramendra at March 25th, 2010 at 7:11 pmI will be suprised, if a Google like system really will work here.
We are dealing with 2 highly different systems. While Google is more an entry point for people searching for content. Twitter is more of a system to help people follow folks who they percieve as experts, and be in the know.
In Google, the ad serves a purpose, so it is successful. In Twitter, an ad like Google is anything but a distraction.
Having said that, the best thing Twitter can leverage is fan following. Sort of like endorsements in the real world. People with the highest following, can be contacted to promote products – essentially endorse them.
Is it unethical? Not really. Celebrities do endorse products.
Posted by vnambiarp2 at March 30th, 2010 at 2:12 pmI AM HERE
Posted by Tim Christians at May 30th, 2010 at 7:17 pmI had read this article and very nice to know about this. As we know Twitter is being more and more popular day by day, it's providing best facilities to it's users. I think it doesn't matter even if it copies Goggle, I have no complains according to it's new ideas regarding add plans.chiropractic advertising
Posted by alina8528 at June 11th, 2010 at 11:04 amReally? Twitter, with their new paradigm of socialmedia, has a big chance to do more in the internet, more business and more than google, I think. It's more human touching and direct message is the smart way to send and receive any advertisement models…goodluck for twitter…!
Posted by nindrianto at June 18th, 2010 at 7:49 amContrary to other comments, Twitter knows a lot about their users from who they follow and the tweets they make. Everything can be categorized into keywords or subjects, and advertisers can bid on them so the ads displayed are relevant to the user.
I look forward to working with Twitter's ads api (when/if they release one) and think their revenue will grow exponentially with its implementation. Too bad they're not a publicly-traded company…yet… ;)
Posted by Bogus Man at June 21st, 2010 at 1:27 pm“A lot” is a stretch. Consider that most Twitter users are passive — they're readers, not writers. So there's not a lot to be gleaned from their posts. And while you *might* be able to get a sense of what I'm interested in by looking at at the Twitterers I'm following, it's not nearly as powerful as watching what Web sites I visit, and certainly nothing like responding to my search queries.
Posted by PKafka at June 21st, 2010 at 3:51 pmwell, The web's technology news site of record, Techmeme spotlights the hottest tech stories from all around!
Posted by zixmail pricing at June 22nd, 2010 at 6:32 amIndustry related conversations are happening online as I type.
Posted by Anonymous at August 16th, 2010 at 6:14 pm