Advertising on Twitter
Thursday, July 9, 2009 at 11:03AM The recent national election in Iran and its aftermath brought Twitter into the spotlight as the medium of choice uniting protesters who believed the results were rigged. With severe restrictions imposed by the government on traditional journalists, tweets issued by Iranian citizens soon became one of the primary sources of information for those in the outside world.
The simplest way for anyone on Twitter to follow along to any breaking news is to search for the relevant hashtags. Hashtags, topic names that are proceeded by the "#" character, make it easier to search within Twitter by grouping content over multiple feeds. Anyone can attach any hashtag to any tweet, which allows the popularity of a particular topic to be exploited. And this was the ploy undertaken by Habitat, a British furniture company.
In a blatant attempt to piggyback on the enormous number of followers of the Iranian situation, Habitat issued promotional tweets for their business using the #mousavi hashtag, a reference to the losing candidate. One of these tweets even offered a chance to win a £1,000 gift card. The Twitter community was outraged that a topic devoted to the oppression of the Iranian people by its government was manipulated by a furniture company trolling for business.
According to The New York Times, Habitat apologized with a statement posted to a social media blog that included the following excerpt:
I know people have been waiting for a response tweet from us; we are treating this very seriously and wanted to offer a longer message.We have been reading everyone's comments carefully and would like to make a very sincere apology to any Twitter users who were offended.
Using Twitter as an advertising platform has garnered much attention over the past year, particularly with rumors of a takeover by Google or Microsoft. The exponential growth of Twitter has led some to estimate that the company could be worth over $500 million. But with no revenues to speak of, thoughts have turned to monetizing the service by accepting advertising to justify the lofty valuations.
Some companies already have been successful in using Twitter as a marketing tool. Dell, in particular, announced last month that it has made over $3 million by its promoting its refurbished computers and accessories through its Twitter account. The problem for Twitter is that it doesn't see one penny of this. In their quest to figure out a way to generate revenues, Habitat may have inadvertently blazed a trail for others to follow.
From the early days of newspaper publishing through magazines, radio, television and the World Wide Web, media magnates and advertisers have formed a symbiotic relationship: one reaps the reward by renting out audience access to those willing to pay for it. This model has evolved to the point where advertising in these media is accepted and expected. When reading a newspaper or magazine, the ads have their place on the printed page. Same with television with its use of thirty-second spots and infomercials. The Web primarily uses banners and text blurbs located in certain places on the page. Any deviation from this norm causes unease to the consumer of such content; it breaks user expectations honed by past experience.
That was one reason the Habitat promotion causes such a backlash. It appeared where it was least expected on a topic that had no relevance to the advertiser. If one goes by the rule of thumb that all publicity is good publicity, then Habitat scored a coup. And Twitter still did not see any revenue even though it was providing the access.
The options for Twitter going forward are limited. In press accounts, Twitter executives have said they will try to monetize their service by assisting businesses in promoting and selling their products and services. They have also said that they will exploit real-time search capabilities of Twitter feeds. No one has elaborated on exactly how any of this would work or how it can generate enough revenue to justify the company valuations.
That is why, ultimately, they may have no choice but to resort to accept advertising that will be placed randomly into tweets of any topic, particularly if they can form some sort of a demographic profile of each Twitter user. Banner ads are not a viable option as users can access Twitter from different devices and software with many not having the real estate to accommodate graphical ads or video spots.
In the end, it will be up to the nebulous audience of Twitter users to pass judgment on any form of advertising on the social networking service. A strong thumbs-down would cause alienation with its most ardent users and may doom Twitter to join the ranks of Facebook and YouTube -- services that have garnered enormous audiences yet fail to make any profit.
Habitat,
Iran,
advertising,
spam in
Business 

