Social media is in an exponential phase these days, and Twitter is one of the prominent examples. So, the news is that the Twitter is planning to roll out its advertising products to 50 more countries by the end of this year. As of now, the micro blogging platform is offering ad products to a limited pool of territories, which is not contributing much (at least, not what it should actually do) to the process of monetization. This expansion to 50 countries sounds quite aggressive, and Twitter will be specially focusing on Latin America, particularly Brazil, and west European countries such as Spain and Germany. That’s why these countries will be on the top of the list to get Twitter’s ad products, including promoted tweets, promoted trends and promoted accounts.
Jack Dorsey, founder of Twitter, made the announcement of expansion at a press conference at the Cannes International Festival of Creativity.
“I’m extremely humbled by how quick and broadly Twitter has taken off and how we’ve done building something independent and timeless – this is a company that will last. The company has always put itself in a position to choose when it is ready [to make strategic decisions such as an IPO or sale]. We do things when we are ready. We have a good understanding about pacing and have the discipline to make the choices ourselves,” Dorsey said.
When asked about the financial position and revenues of the company, Dick Costolo, Twitter chief executive refused to comment, and said,
“That is one of the great things of being private, I don’t have to discuss these things. We are still growing quite fast month on month in the UK, Mexico, Spain, Italy, France … Saudi Arabia is our fastest-growing market percentage-wise month on month. 60% of users access Twitter via mobile, and that mobile revenue exceeds non-mobile revenue some days. Growth is still broad-based and global.”
Trying Hard to Monetize its Ecosystem
It is quite evident that Twitter still has not managed to monetize itself effectively and ads seem to be a major component to how they might do that. Of course, they now have a track record of not really going anywhere with advertisements, and this might be the reason behind this aggressive expansion. Taking a look at the advertising side of Twitter business, the company banked on several thing, right from the political advertising and publishing ads in user streams to new brands pages, layout and self-serve ads. It is looking to make good money out of the 2012 US Presidential campaigns and other political advertisements. Twitter will support and promote these political ads via a new interface that they have been experimenting on for months now. Twitter Fly is another step in the monetization direction that will help realize the potential of its Twitter’s ecosystem towards advertising.
And the recent development is the new layout and self-serve ads. Twitter has incorporated new functionality into the new layout, along with certain conveniences, like being able to preview an image instead of redirecting to the original source. With this new layout, Twitter looks to effectively target these users with precision based on their interests and display tweets in a phased manner. While all these efforts sound nice, let’s see how thing turn up and work toward monetizing twitter’s ecosystem.