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How Twitter Makes Money

ClickZ, 4/26/11

On January 24, eMarketer predicted that Twitter would bring in a bit over $150 million in 2011 and $250 million in 2012. (You can see the chart at the bottom of this column.) Is this realistic? I think it may be from what I have learned and am writing about below.

Twitter’s “Promoted” Products

Recently my firm had a very interesting series of calls and meetings with Twitter and I got my head around all the details of its advertising or “Promoted” products. Twitter’s offerings have three attributes that really struck the value/performance chord in my book:

Cost-per-click from its Promoted Tweets

Cost-per-action (actually cost-per-follower) from its Promoted Accounts

Exclusivity from its Promoted Trends offering (basically Twitter’s version of a home page takeover)

So here is a quick breakdown of what those products are offering:

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