Twitter to show more ads, still biding time on IPO

Sep 09, 2011 By MICHAEL LIEDTKE , AP Technology Writer

(AP) -- Expect to see more ads flowing through Twitter's stream of tweets in the coming weeks, but don't expect to read anything soon about an IPO from the online messaging service.

Twitter Dick Costolo delivered that message in a Thursday meeting with a group of reporters at the company's San Francisco headquarters.

After bringing in more management talent and upgrading its service so it can handle big spikes in messaging, Twitter is ready to get more serious about building a successful business. But Costolo said that goal shouldn't be interpreted as a sign that 5-year-old Twitter is poised to pursue an of stock - a move that would require the company to reveal how much money it's making for the first time.

Twitter doesn't need the money because it just raised $400 million from and other investors. With such a large financial cushion, Costolo indicated Twitter is unlikely to pursue an next year.

"We now have what can only be referred to as a truckload of money in the bank," Costolo said. "We did that because we want to be in control of our destiny and grow the company the way we want to."

The best way to do that, Costolo said, is to show more ads to Twitter's worldwide audience of 100 million active users. About half of those users log into Twitter each day, a sign that the service is becoming addictive.

Twitter is becoming such rich source of information and entertainment, Costolo said, that roughly 40 million active users log into the service without ever posting a tweet. This group of so-called "lurkers" just log in to read what's going among the people they are following or to search for something. Even with so many users staying silent, Twitter says it processes about 230 million tweets per day, more than doubling its volume since the beginning of the year.

With so many people immersing themselves on Twitter, the company thinks the timing is right for more advertisements.

Twitter began showing ads last year, but limited them to promotions from companies that users had chosen to track. Now Twitters users will gradually start seeing ads from companies they aren't following. In an effort to avoid alienating its audience, Twitter will strive to show ads likely to appeal to each user's interests. The company thinks it can do this by analyzing whom users follow. For instance, a person who follows 30 different professional athletes might be more likely to see ads about sports equipment or apparel.

All , known as "promoted ," must comply with Twitter's online messaging service's 140-character limit.

is expected to generate about $150 million in ad revenue this year, up from $45 million last year, according to the research firm eMarketer Inc.

Explore further: LinkedIn membership hits 300 million

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Twitter has 'no plans' to sell or go public

Jan 08, 2011

Twitter, which has fended off several buyers, intends to remain an independent company and is not considering going public at the moment, chief executive Dick Costolo said.

Twitter buys TweetDeck for reported $40M to $50M

May 25, 2011

Twitter has bought TweetDeck, a London-based startup that helps people read, write and organize the short messages posted on the online network - and will keep the service going.

Recommended for you

LinkedIn membership hits 300 million

23 hours ago

The career-focused social network LinkedIn announced Friday it has 300 million members, with more than half the total outside the United States.

Researchers uncover likely creator of Bitcoin

Apr 18, 2014

The primary author of the celebrated Bitcoin paper, and therefore probable creator of Bitcoin, is most likely Nick Szabo, a blogger and former George Washington University law professor, according to students ...

White House updating online privacy policy

Apr 18, 2014

A new Obama administration privacy policy out Friday explains how the government will gather the user data of online visitors to WhiteHouse.gov, mobile apps and social media sites. It also clarifies that ...

User comments : 0

More news stories

Airbnb rental site raises $450 mn

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

Health care site flagged in Heartbleed review

People with accounts on the enrollment website for President Barack Obama's signature health care law are being told to change their passwords following an administration-wide review of the government's vulnerability to the ...