Boston, MA 08/11/2014 (wallstreetpr) – Social networking site Twitter Inc (NYSE:TWTR) appears to be taking cue from its rival Facebook Inc (NASDAQ:FB) on generating revenue and is ready to change the ad-revenue model. For this, the company is revamping its advertising fees.
Target Audience
Twitter Inc (NYSE:TWTR) is reportedly remodeling its revenue generation from the advertising space. The fresh proposed model would fit in well with the scheme of things of small and medium enterprises business, the Wall Street Journal had reported. The company seemed to have come to the opinion that the SME segment provides a great revenue source that can be tapped fully.
Currently, Twitter generates revenue from every ad from every click by the user on his Twitter page. The fresh proposal is targeted towards attracting more small and medium business segments in the coming months. Accordingly, the company would provide ad companies with complete freedom as to how they wish to spend their ad money.
This meant that a retail store operator, for example, would pay only if the users turn towards its websites to view the collection. It appears that there are also other options for the advertisers that include paying money depending on the follower’s uptick, downloading of apps or getting the e-mail ids of the users.
Similar To Facebook
The fresh proposal envisages Twitter charging in a similar fashion to that of its rival Facebook Inc (NASDAQ:FB) and online ad platform of self-service. Facebook permits advertisers the option of choosing payment on the user’s specific action such as clicking likes or appt installs.
Twitter Inc (NYSE:TWTR) disclosed that small business accounts number around 4.5 million and more than thousands have started their campaign on its site. On the other hand, the number of small business accounts for Facebook was more than 30 million with their brand on the pages of the site. This apart, over 1.5 million have already started advertising at the end of the June quarter.
It remains to be seen in the coming quarters whether the new modeling of revenue from advertising provides the expected results for Twitter Inc (NYSE:TWTR).
