Here Come The Twitter Ads
Advertising has arrived on Twitter. Last month, we saw the introduction of TwittAd and Twittertise. TwittAd allows you to rent out space on your profile page to an advertiser. Many people (myself included) tend to only check someone’s profile page after receiving a New Follower email, so it remains to be seen if advertisers will see any meaningful results from this. Twittertise provides a way for brands / advertisers to schedule advertising tweets and track the CTR’s (click-through rates) for those links. Since that dashboard is only visible to the advertiser, there is a good chance that you won’t know that Twittertise was used to send out the tweet.
Now we have Magpie, which has the tag-line: “convert your tweets into bling-bling”. Magpie matches up advertisers with Twitter users who have agreed to periodically send out “magpie-tweets” containing the advertisers message, which will contain a link to the advertiser’s site. Here are a few examples of what the magpie-tweets look like:



According to the Magpie FAQ, every fifth tweet will be an advertisement, but that can be changed to be less frequent. They recommend that you decide on a frequency based on listening to your followers: ‘”Listen to what your followers tell you. If they’re annoyed by the magpie-tweets, they might unfollow you and you might earn less.”
So how much can you make from Magpie? That depends on how many followers you have. You can use this estimator to estimate your earnings. For example, if I were to sign up, I could make 208 euros per month. Don’t worry – I’m not going to sign up. : )
Read Write Web checked the estimated earnings for some of the most popular Twitter users:
But what about the heavily followed Twitter crowd? Kevin Rose, for example, could stand to make an extra $8,000 a month, Leo Laporte around $15,000 a month, and Barack Obama? A projected $64,000 a month. (Which, ironically, is more than he would make if he gets the job he’s gunning for.)
So the big question is: How will the Twitter community react to this new form of advertising on Twitter?
Laura Fitton (@pistachio) from Pistachio Consulting is skeptical:
Twitter readers don’t care who you are or how many followers you have when it comes to click-through-credibility, they care if the link sounds compelling.
So as the advertiser, paying magpie what sounds like a fairly high CPM, is probably NOT going to be happy with results and continue the advertising at that rate. The platform on the other hand (your tweet stream) will go down in value by losing followers and by losing click through credibility among followers. We’ll go blind to the #magpie tag just like we are to banner ads. For that matter, Twitter clients will probably offer settings to simply filter out the adtweets.
I believe, firmly, there are ways for Twitter to make money and for people and businesses on Twitter to make money, by working within the cultural system there.
Had I gone on, I would have pointed out that the clickthroughs I do see frequently depend more on “re-tweets” which are pretty unlikely unless Magpie obtains some amazing ad inventory.
Rick Turoczy from Read Write Web questions whether or not the extra cash is worth it:
With Magpie, the annoying tweets could – ultimately – be beyond your control. In fact, this “ad in the tweet stream” concept is exactly what people fear Twitter will be doing with their tweet streams in the not too distant future – inserting advertising into conversations that heretofore have been wholly controlled by each user.
Magpie is promoting the service as a way to get into the tweet stream of “popular twitterers.” One has to wonder, if those Twitter users – especially those who are already seeing value in their Twitter use – are going to be willing to trade their influence for cash.
I, for one, will keep posting annoying drivel on my own – for free.
And there is no shortage of critics on Twitter:


So what does Twitter think of other companies building an advertising platform on top of the Twitter network? So far, Twitter has taken a hands-off approach and hasn’t shut any of these ad networks down and there is nothing in the current Terms of Service that specifically prohibits advertising.
At the recent Conversational Marketing Summit, Federated Media CEO John Battelle asked Twitter CEO Ev Williams how he feels about other companies building platforms to monetize Twitter. From the 16:24 mark of this video:
John Battelle:
It strikes me that people may just go ahead – and some have already done this – and start to build publishing executions and sell ads against Twitterstreams and you guys don’t get any of it. That is a dilemma…Ev Williams:
(laughs)John Battelle:
[That is a dilemma] that has happened already to Facebook. You look at some of the most successful applications on Facebook where 100% of the revenue in those applications is going to whoever developed them and Facebook isn’t seeing any of it except they sort of put an HTML frame around it.Ev Williams:
At least in their case people still have to come to their site.John Battelle:
Right, that’s true. So are you a little concerned about that?Ev Williams:
It’s not near the top of my list of concerns. If someone is creating extra value from Twitter, I’m happy for them to make money. If that becomes *the* big thing – the way Twitter makes money – we’d probably want to see how we could share in that. But, right now, we think it’s a win-win…
Later in the conversation, Battelle asks Williams about how they might monetize Twitter Search (formerly Summize). From the 18:31 mark:
John Battelle:
When you look at Twitter, particulary at the search piece – if someone is going there and saying – I’d like to find all twitters about Chrysler mini-vans – or put in Chrysler or put in a brand – it strikes me that there’s an AdWords opportunity there for you guys. Particulary if you get really big – so that you’ve got scale and then you have that long tail kick in and you can start to really say we cover the universe of brands and potential use cases for people looking for information about things. Is that something that you’re looking into developing? TweetSense?Ev Williams:
Uhm – can I use that? (smiles) … Yes – well, so search ads – is that something that we want to do?John Battelle:
Yeah.Ev Williams:
Sure. That’s somehting that we’ll try.John Battelle:
Will you first start with just sort of sticking AdSense [on Twitter] and see what happens?Ev Williams:
We’ve talked about it. It’s…John Battelle:
I’m sure Google has called. (smiles) I mean they do have your phone number.Ev Williams:
Well… I’ve changed it. (smiles) Yes. It’s another thing that might be worth doing. It doesn’t excite me as much as other things. Because, I really want to focus on things that are very organic to Twitter. Twitter is very much about opting in to information. If we can make that compelling – if we can make an AdSense-like product where this arguably does adds value to the content that you’re looking for – then yes, that could be intriguing. But what I’d love that to be is not just AdSense because when you do a Twitter search, it’s very different from web search – you’re really – there’s the content right there. You’re not looking to go somewhere. So … it’s not likely to perform like web search. So if we can have something that’s more Twitter-related where maybe they’re sponsored tweets and they come up and they’re related to this content that you’re searching for – but it’s not necessarily the most recent thing. If we can really sell the value of getting people following you on Twitter. So if you’re a company, or a brand, or an event, or whatever you are – then discovery is a big value. So if someone then searches for Chrysler, and Chrysler has a Twitter account and they’re able to come up and say “Follow us” and we’ll make that worth your time. Then that’s some value that we can deliver and it’s up to the user whether or not they opt in – and if they do then we could charge them for that – maybe.
There are some advantages to Twitter sitting back and watching these other companies try out different advertising models. They can watch to see how the Twitter community responds to the ads. When they see something that works (adds value for brands / advertisers without alienating the Twitter community), Twitter can partner with that company – e.g. set up a revenue-sharing arrangement – or just acquire the company – similar to what they did with Summize.
And don’t forget that Twitter has been experimenting with display ads on the Japanese version of Twitter since April 2008. I’m sure that they’re monitoring that closely and have plans to roll out something similar to other markets.
Coverage Elsewhere:
- Mashable: Make Money on Twitter
- ReadWriteWeb: Selling Ads On Your Twitter Background? You’ll Love Magpie
- Pistachio Consulting: What’s a Tweetworth? My Two Cents On Magpie
- The Social Path: The Price of my soul? $33.82 a month apparently
- Sam Sethi: why I don’t think I’ll sellout for €30 p/m to Magpie a twitter advertising model
- BuzzNetworker: To Magpie or Note to Magpie: That is the Question
- A View From the Isle: Twitter vs. Magpie: Wait aren’t Magpies supposed to be one of the most annoying birds?
- The Future of Ads: Magpie Tries To Make Twitter an Ad Network, Fails
- Get Satisfaction: The idea of http://twitter.com/beamagpie is completely spam-annoying





