Twitter's Not-So-Secret Monetization Plan About To Launch

Twitter has been rumored to be launching a new ad network for the site for some time now, yet the company confirmed with CNBC that the service will launch soon. We’d assume that this means the company will make the official announcement at the Chirp developer conference on April 14th. The most significant part of this announcement is that developers will be able to generate revenue from the network.

While the placement of advertisements has not yet been announced, the company has emphasized that they are focused on not degrading the overall user experience for the purpose of generating revenue. By enabling developers to generate revenue, the company will be helping to defend against the new Facebook Credits offering expected to be announced at f8.

While most of the revenue for Twitter applications has been generated from analytics services up until now, a new advertising platform could clearly pave the way for a more robust Twitter developer ecosystem. While Facebook has been cash flow positive for some time, Twitter was able to generate a significant amount of revenue through charging for stream access.

As we wrote the other week, Twitter continues to charge for access to the firehose, which is as much as $100,000 a month for smaller developers, and into the millions for larger companies (Google, Yahoo, Bing, etc). For now we’ll have to wait and see what Twitter rolls out, but there’s no doubt that developers and investors are both watching the announcement closely.