For a few dollars more…

This won’t be the first time I’ve written about Twitter’s revenue model, and I suspect it won’t be the last. In fact, the last time I wrote about it, it was in the context of the deal that almost happened between Facebook and Twitter. Its been a couple of months, so I thought its a good time to check what both have been upto on the subject of revenues.

There was a scare recently on how Facebook is going to make money by selling users’ data, but that turned out just to be misinterpreted statements, based on a demo that they did at Davos to show real time crowd insights, and had nothing to do with the Engagement Advertising model. Facebook has been growing very fast, (stats) and though this is claimed to be a demo, real time insights (permission based) from the exact target audience could indeed add a lot of value to brands, and any other entity that could be interested in data. Market research firms should actually be working with Facebook and starting to develop pools specific to their client’s audiences. With Facebook implementing the Friendfeed style ‘Like’ feature, the tools are becoming as simple as possible.

Meanwhile, I also wonder about the data that could come from the sites that have been tied through Facebook Connect, especially since there are some big names in their respective fields. This could reveal a lot more about the individual’s interests – basis his interaction with the other sites, and that data would be easier to handle since in many cases the site’s content would dictate the context, unlike the generic data that could be picked up on Facebook itself. This would be an interesting space to watch, and that’s an understatement.

A simple yet possibly history making story of how Twitter was made. And in another simple yet profound statement, Seth Godin described it as a protocol. And yet another good one which describes it as a social experiment. Which then raises the question of how a revenue model can be made for this protocol or experiment. As someone once said, “Twitter is what you make it to be”. There are pains too. Twitter’s humble origins and the scale envisioned may not have made a vision mandatory then, and there is also talk that Twitter could ‘go for years’ without earning, but to survive in the long term, Twitter does need a vision, one that’d then give some direction for its revenue model.

There have been many entities trying to use the stream for transmitting ads, adCause and TwitterHawk, being the latest, but honestly, it does seem like a force fit. But I’ll admit that the location+context based approach of TwitterHawk does seem very interesting. In fact, there have been many apps built around Twitter, some of which require the user to give the Twitter password to use the service, and there have been security problems thanks to that too. Hopefully that’ll get sorted out once OAuth is implemented, perhaps we’ll see a new generation of mashups too, leading Twitter towards a revenue model. Here are some very interesting thoughts on Twitter, including searching conversations based on category, and a marketplace around conversations and real products. Its interesting to note that brands have already begun experimenting with Twitter, and with tangible expectations, as the recent Dell promo of exclusive deals shows.  More likely to follow that model with the launch of TwtQpon. In this context, check out CheapTweet too. Meanwhile, here’s a good set of thoughts for Twitter revenue.

Twitter Contest-Denuology Entry94 Update

 

With enterprise versions (Yammer)and even college versions (Wiggio), Twitter needs to hurry, if it does not want to lose out segments altogether. This story about Twitter thinking about charging brands is turning out to be true. I can imagine those social media evangelists within organisations groaning already!! But all the best, and we await the Business Product Manager. 🙂

While Twitter scores on the real time aspect (my opinion since I use both) Facebook offers a lot more easily available data on an individual’s demographics, interests etc. The other parameter is that while Facebook is being adopted by the masses easily, Twitter does require a bit of getting used to. Facebook might have to sweat a bit to crack real time, and Twitter would have to do many things – consider scaling up groups to other regions, have better ways of segregating conversations and data mining.  But in the end, it all does seem to boil down to using real time information of potential/existing consumers, with precise demographics and interests based targeting.

We keep saying that social media and its tools are all about the human touch, and the personalisation. And brands utilising these platforms should understand that. I wonder if the same applies to revenue models too, and whether this extreme customisation will mean that both these networks will find it difficult to conceptualise and then implement, revenue templates, that will fit all.

until next time, money makes the social world go around 😐