Despite billions of tweets each month, Twitter still struggles to come up with a plausible business model. They recently started testing out Promoted Tweets but that may not be enough. The latest experiment of Twitter may be sponsored Trending topics. That means, along with user generated trending topics, we soon might see topics manually inserted by advertisers for tens of thousands of dollars a day.
As All Things Digital reports, the negotiations with potential advertisers are still at an early stage and there is no word on when we will see this implemented. However, given the increasing power of Twitter, there is absolutely no doubt that many advertisers are ready to grab the opportunity. This mode of marketing would be specially good for brands that want to create a big splash in a short period of time for example movies and TV shows.
Another factor to consider in this regard is the limited number of trending topics Twitter can display. Once rolled out, this might see advertisers bidding for a spot which would obviously mean increased revenue for Twitter. The likelihood of Twitter making this location-based is also very high. This would allow advertisers to tailor their ads to specific markets and would allow Twitter to accommodate multiple advertisers at the same time.
Do you think this will finally be the money-maker for Twitter, or does Twitter need to come up with something more integrated and intelligent to monetize their platform?