Twitter’s CEO Dick Costolo has big plans for his short messaging service. He’s hinted that advertising isn’t enough of a money-maker, and that Twitter leadership is considering tackling another business idea: commerce.
During a keynote interview at Fortune BrainstormTech, Costolo dropped hints that advertising, while still being Twitter’s main focus when it comes to making money, won’t be alone for long. He discussed examples of companies already using Twitter for commerce, such as the San Diego Chargers quickly selling off 1,000 last-minute tickets. And although Twitter didn’t make any money off of the transactions, you can bet they’re looking into how they can take a cut the next time around.
CNN Money quotes Costolo as saying:
“There’s a commerce opportunity there for us to take advantage of if we want. How can we remove friction from the process?”
Commerce is clearly still in its infancy at Twitter, as Costolo didn’t give any details on exactly how the company might remove that friction.
It doesn’t take much to imagine however.
If the Chargers were able to sell their last-minute tickets directly on Twitter through a commerce platform – rather than directing interested followers to a separate website – that would be labeled as reducing the friction in my books. Twitter stands to become a unique marketplace for unsold inventory and bulk deals if they push ahead with creating a commerce platform.
Costolo’s comments about a possible Twitter commerce platform echo rumors that the Financial Times reported which suggested that Twitter was considering adding a Groupon-like service to offer daily deals to its users.
Costolo maintained that advertising would continue to be Twitter’s main source of revenue and its focus moving forward, but these new potential business ideas are worth mulling over, as they could help Twitter remain relevant in the face of new and competing social networks.