Twitter to launch ad platform, puts pressure on third parties

Twitter wasn’t always as big as it is today. In fact, they were quite small for years before going mainstream, but one question has remained: How will this service be monetized? It’s not a shocker, but they are on schedule to officially launch their Google Adwords-like ad platform on Wednesday at their Chirp conference.

TechCrunch reports it is rumored to work much like Google’s model. Twitter will allow third parties to bid on individual keywords, with ads displaying above related terms in search results and hash tag instances. This should provide contextual ads that are relevant to the content you are viewing.

Up until now, third party Twitter clients have integrated their own ads, but with this new platform they will be able to opt-in to Twitter’s platform and benefit through revenue-sharing. 

Consolidating the short-messaging service seems to be a focus for Twitter with their recent acquisition of Atebit’s Tweetie client, introduction of @anywhere service, and purchase of the domain name. Although Twitter is making concessions for third party clients through their ad platform, companies with business models based solely on the Twitter service have to worry that they are being pushed-out to some extent. There is now an official Twitter client and it’s possible that URL shortening could be moving in-house as well.

Referring to Twitter’s recent client pushes, Michael Arrington at TechCrunch said, “Anyone who didn’t see this coming was in denial.” One thing is for sure, Twitter is interested in capitalizing on its ecosystem and is increasingly less interested in allowing third parties to control large chunks of the space.

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Twitter trying to be the new Google? Twitmail coming next. Then Twitdocs. I'm laughing as I type this but I can really see it happening.

So we are going to have a super-intelligent tweetie that can recommend stuffs according to what we tweet. Content-awareness ads, I think. I suppose it would follow Dr. Google's style: ads that always follow you on every website you are, everywhere you go (ads on your PC, ads on your PS3, on your PSP, may be even on your hi-end toilet). Since Tweeter has its own embedded API, this is too way possible.

I heard recently some time back @DellOutlet an twitter id, announced an large scale sale in their business, i hope this move would be welcomed by giants like them

This is actually a really good idea, if you ask me, and has a good chance to make Twitter turn a profit without giving any real major headaches to the customers along with (and since Twitter can control the buying, and if they handle it carefully) actually providing decent adverts