Is Twitter launching advertisements on twitter?

Amarnath Prabhakar March 20, 2009 0

That’s one question I am forced to ask. The reason being a change on twitter’s interface. I couldn’t help notice an additional feature on twitter when I logged on to twitter this morning.

There was a small message under the profile details. This message was promoting another feature or service of twitter. The service that was being promoted is the new twitter search.

It is right if I am questioned, how this promotion of their own service on their own website becomes an advertisement. That is correct the promotion would not be termed an advertisement but is a sure step towards launching one such advertising campaign.

Why should there be a thought that, this sure is a pilot for a new advertising campaign?

It involves money – As with the last available count there are about 25,000,000 (did I get the number of zeros right, it’s 25 million) users logged into twitter.

Let’s do this small math:

There are 25,000,000 users and even if 20% of them login to their accounts every day we will have 5,000,000 impressions and over a month it would be approximately 150,000,000 impressions

Current CPM (Cost per thousand impressions) on a PR6 (what is PR/Pagerank) website is about $6 and twitter is a PR9 Website. So lets say the CPM is $10 (I know it’s very cheap)

Imagine an advertiser who is offered even a million impressions a month you can serve 15 advertisers in a month

And, at CPM $10 you would have made $1,500,000 a day!!!

This is just a ball park figure and considering two things, the bare minimum price for CPM and a bare minimum impressions. If this was the possibility through advertisements, I probably would have done this a long time back (only if I had owned twitter).

So it makes absolute business sense to take on to website advertising when you already are a behemoth. No wonder twitter walked out of the acquisition dialogue.

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