Wall Street PR

Twitter Inc (NYSE:TWTR) Enters Advertising Tug Of War With Changes In Fee Structure And Policy

Boston, MA 08/08/2014 (wallstreetpr) – In a recent competitive tug of war with Facebook Inc (NASDAQ:FB) in context with the advertising charges, Twitter Inc (NYSE:TWTR) has also decided to remodel and restructure the charging policy in order to court small entrepreneurs.

The Present Policy

At present, Twitter Inc (NYSE:TWTR) receives its payments from this section in case a user interact any way desires, with the sponsored advertisements, which appear to be like the tweets and also showcase in primary content feed. These include re-tweets, clicks, replies as well as ‘favourites.’

The New Policy

As per the new policy of Twitter Inc (NYSE:TWTR), which will pop up in very near future, Twitter shall introduce a feature for the advertisers to specify how, precisely, they would want to shell out money from their pockets. This can be explained with the help of an example.

Suppose a retailer chooses only the case of user clicks through to the company’s website for summer collection, then he would shed out money to Twitter only for these clicks service. Some of the other options can include paying money to Twitter especially when in case of getting new followers, or for getting the app downloaded and for making use of email addresses of the users.

New Fee Structure Aligned with other Social Networks

Twitter Inc (NYSE:TWTR) has perhaps understood that in the present scenario, it is the case of survival of the fittest. Hence, the new approach adopted by the company will help it in aligning better with the other self-service online advertisement podiums and social media. Facebook is already providing such media-campaign options throughout its network where advertisers are free to pay for chosen specific actions like likes, clicks and installations.

An Opportunity to Earn Advertising Revenue

This action will also allow Twitter Inc (NYSE:TWTR) to mint money on advertising revenue because users, for example, will have to take a few more steps in order to engage with ads than just clicking on the favorite button. In the meanwhile, the experiment could also hit like a boomerang if it fails because Twitter’s maximum source of revenue comes from advertising only.

Published by Fiona Gibson

Fiona is a finance graduate and an expert in analyzing market trends.