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Twitter Has a Business Model

Twitter unveiled its business model today. Now ads will start to display based off of keyword searches. The service boasts an average of 50 million Tweets. They haven’t disclosed how many searches are done but do claim that it is very searchable. Now the ads will be sold on a CPM basis and one ad will display based off the terms. There will be bidding available for keywords. Initial clients include Bravo, Starbucks, and Virgin. All of which are Tweet Heavy workplaces. The amazing thing about this service is that the ads themselves are tweets and can be retweeted and replied to. They are working on a model that will keep ads up based on performance a “resonance” model. This is huge for advertisers as the ability to blast out about a show then participate in the conversation will be very valuable. They also plan on rolling out a host of pro products that will allow for multiple users and searching to find mentions of brands for companies. To read more check out: http://adage.com/digiconf10/article?article_id=143237