Twitter, founded in 2007, is a San Francisco based Company that lets people send 140-character messages, or tweets, to groups or followers. Today, the company has over 100 million active users and is valued in topping $8 billion, even though it has not yet established itself as a money making model.
Co-founder of Twitter, Jack Dorsey, said in January that Twitter’s “business model has been in development for some time and it works.
However, on Thursday Feb 16, 2012 Twitter Inc. launched a brand new service that allows small businesses to buy and place ads on the online messaging platform.
For years Twitter has been looking for ways to innovate and expand advertising revenue through their social network and it looks like they finally stumbled upon something promising. The new ad service will give insight and answer questions about the their business strategy.
Twitter’s main source of advertisement has been on a case-by-case basis utilizing mainly in-house staff sales. The company spent last year developing this self-serve system in order to generate more ad transactions and handle much more volume of ads.
The new service, that has been in testing since last November, launched on Twitter’s website early Thursday. For now the new service is limited to merchants and advertisers who use American Express cards. Twitter plans on opening the service to more cardholders in the months ahead.