Feeds

Twitter man: Tweet ad demand exceeds supply

'Twad math looks good'

The essential guide to IT transformation

Twitter founder Evan Williams says that demand is far outstripping supply on the company's fledgling ad platforms.

"Our biggest challenge right now is that there's way too much demand for the supply," he said – predictably – on Wednesday evening at the Web 2.0 Summit in downtown San Francisco. "We've been ramping up our sales team to get more people in the door. We've kept it small, and we've purposely kept it small, so we can test very throughly and learn from what's happening and get feedback from the advertisers."

He said that the company is serving about 40 advertisers at the moment, but that this will grow to "hundreds" by the end of the year.

The company now sells "promoted tweets," which turn up in Twitter search results; "promoted trends," which pop up in the site's "trending topics," a list of the most popular subjects on the micro-blogging service; and "promoted accounts," which appear in the list of Twitter accounts the site suggests you should follow. Williams said that a promoted trend – where an advertiser can pay for a place on the service's list of most topics – "increases conversation about [the topic at hand] three to six times."

Asked if the company had a "strong" revenue model, Williams said: "The math looks good." Naturally. "The advertisers keep coming back and they want to buy more," he continued. "It's been better than we expected."

Asked how much it relied on Tweet-sharing partnerships for revenue, Williams indicated this isn't all that important. Over the past year, the company has inked deals with Google, Microsoft, and Yahoo! to supply these outfits with access to the Twitter "fire hose" – i.e. the service's endless stream of mini-messages – but Williams said that Twitter doesn't see such deals as a major source of revenue.

"We've got way more demand than we can service for that data," he said. "The point of those deals was never primarily about revenue. We believe that it was good to give more distribution of the tweets. Because the whole point of [the big search engines] is to help people know what's going on in the world and that's where people are going in many cases to find out what's going on, so we thought it was a win-win for us and the search engines to get this distribution...

"But we didn't set this up to be a big revenue model." ®

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Judge nixes HP deal for director amnesty after $8.8bn Autonomy snafu
Lawyers will have to earn their keep the hard way, says court
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.