Speaking at the Mobile World Congress in Barcelona this week, Twitter’s CEO Dick Costolo said that the service is “already making money.” But as the reporter for The Wall Street Journal pointed out, he didn’t specify whether that was income or profit.
Let’s go with profit, as Twitter is now poised to raise the cost of their Promoted Trends from $70,000 to $80,000 a day to a potential $120,000 a day. Since the ad space routine sells out, it sounds like a case of what the market will bear. Now all Twitter has to do is find a way to personalize the delivery so they can sell more than one trend slot a month.
Costolo told conference attendees that Twitter is growing at a “ridiculous rate,” and that more and more, people are using the service to communally celebrate individual events. This certainly was true during the Super Bowl where tweeters broke a record by sending through 4,064 Tweets per second during the final moments of the game. Not that all of the Tweets of the day were about the game. The commercials and the half-time performance accounting for a huge percentage of the day’s chatter.
No doubt there are plenty of people using Twitter, but the Promoted Trends slot has a downside. It can only be seen when using Twitter’s home page. With 40% of Tweets coming from mobile devices and many more people using facilitators such as HootSuite, how many users actually see these Promoted Trends on a daily basis? Apparently, it’s enough people to allow for a generous price hike.
Have you ever clicked on a Promoted Trend? I’ll admit that I had to click on today’s just to see who in the world was promoting a heart shaped pizza.