Tweet Tweet: Twitter’s Business ModelTwitter, the social network based on 140-character text messages, continues in the long tradition of Internet developments that appeared to spring out of nowhere and take the world by storm. Twitter began as a Web-based version of text messaging services provided by cell phone carriers. The basic idea was to marry short text messaging on cell phones with the Web and its ability to create social groups. Since then, Twitter has expanded beyond simple text messages to article previews, photographs, videos, and even animated images, and today has over 315 million active users worldwide (as of September 2015). The 5,000 tweets a day that it began with in 2006 has turned into a deluge of around 500 million daily tweets worldwide. Special events, such as the Super Bowl, tend to generate an explosion of tweets, with a total of 28.4 million tweets during the course of the game in 2015. Some celebrities, such as the pop star Katy Perry, have millions of followers (in Perry’s case, over 75 million as of 2015).Like many social network firms, Twitter began operating without any revenue stream. However, it quickly developed some important assets, such as user attention and audience size (unique visitors). Another important asset is its database of tweets, which contain the real-time comments, observations, and opinions of its audience, and a search engine that can mine those tweets for patterns. In addition, Twitter has become a powerful alternative media platform for the distribution of news, videos, and pictures. Twitter has sought to monetize its platform via three primary advertising options, Promoted Tweets, Promoted Trends, and Promoted Accounts, although it is rolling out more and more variations on these products every day.Promoted Tweets are Twitter’s version of Google’s text ads. In response to a query to Twitter’s search function for tablet computers, for example, a Best Buy tweet about tablets will be displayed. Promoted Tweets look the same as regular tweets and are available on a cost-per-engagement basis (advertisers only pay when users interact with the tweet by clicking, replying, or retweeting it) or on an objective-based campaign basis that focuses on a specific goal such as a click-through to the advertiser’s Web site, lead generation, or the installation of an app. Promoted Tweets typically cost between 20 cents and $4. Twitter also offers geo-targeted and keyword targeting functionality, which enables advertisers to send Promoted Tweets to specific users in specific locations or based on keywords in their recent tweets or tweets with which they have interacted. Twitter’s research indicates that users are much more likely to engage with such Promoted Tweets, and that Promoted Tweets produce greater engagement with viewers than do traditional Web advertisements.
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