Twitter Releases New Ad Platform

Yesterday evening Twitter unveiled the company’s new advertising platform which involves in-stream and in-search promoted tweets, the quality of which are based on replies, retweets, and favoriting. While not exactly a surprising business model, it’s definitely a step in the right direction for the company to begin monetizing their service.

Interestingly enough, the new service sounds extremely similar to Digg’s advertising model under which advertisements which don’t receive many votes from the community are driven off the site. Also of interest is the next phase, in which Twitter “will show promoted posts in a user’s Twitter stream, even if a user did not perform a search and does not follow the advertiser.”

While there will obviously be users that have complaints about this model, it’s necessary for Twitter to generate revenue. These promotional tweets will eventually be pushed out to third-party tools, however details about the implementation have not been revealed. Whether developers will also be able to generate a cut of the ad revenue from promotional tweets is unknown (although highly unlikely).

Another aspect of the new advertising platform is the ability to use the promotions as a way to deflect negative commentary from angry customers. As the New York Times writes:

The ads will also be a way for companies to enter the conversation when it turns negative. Several companies have created tools to measure sentiment on Twitter, but until now, businesses can do little with that information. Even if they write a post in response, it also quickly gets lost in a sea of complaints.

For now, Twitter is in the early phases of being able to roll out their new ad platform and we’ll have to see how the model evolves. At first ads will be purchased on a CPM basis, but that model could change as they see how the ads perform. Do you think Twitter’s new

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