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Suggestion to Twitter: Here’s how you monetize without ruining your ecosystem

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Re: Suggestion to Twitter: Here’s how you monetize without ruining your ecosystem

#2
Yes, there is more to it than you're aware of. For starters, how do you think Twitter's API customers would monetize their applications? They would be paying Twitter for the privilege of attempting to monetize tweets. It only makes sense to pay if they can extract more value than Twitter can.

If someone finds a way to monetize tweets that's more effective than Twitter's, then Twitter would have an incentive to copy it, therefore competing with its customers.

Long story short, that's the reason Google stopped selling white label search via its api to customers like Yahoo ten years ago.

Re: Suggestion to Twitter: Here’s how you monetize without ruining your ecosystem

#3
post #2

Yes, there is more to it than you're aware of. For starters, how do you think Twitter's API customers would monetize their applications? They would be paying Twitter for the privilege of attempting to monetize tweets. It only makes sense to pay if they can extract more value than Twitter can. If someone finds a way to monetize tweets that's more effective than Twitter's, then Twitter would have an incentive to copy i…

I think you missed the point of the article. Right now, Twitter has rigid limits in place - you don't think it'd be better for developers to at least know in advance they can go past that limit, even if it means they have to pay?

There are many uses for twitter data outside of just repeating the tweets with a different design. There are quite a few Twitter apps that generate revenue and some have also been acquired by bigger companies. Twitter and Google main service offering are not comparable, since Twitter has the actual data while Google is a gateway.

Re: Suggestion to Twitter: Here’s how you monetize without ruining your ecosystem

#4
Each has its own merits in the context of sports competitiveness, but in Twitter's case there is no reason for a hard cap at all. What does Twitter gain by putting a hard limit on API usage?

There is a reason for a hard cap: the limit's goal is to ensure twitter-owned clients dominate the market for basic twitter use.

You may have a point by saying that twitter can simply make the tax per additional tweet equal to the approximate revenue they plan to lose as a result. But that figure may be hard to calculate, especially its long-term value. So even if a company is willing to pay 5x to twitter per additional tweet over the hard limit, twitter doesn't know the long-term impact of it

Re: Suggestion to Twitter: Here’s how you monetize without ruining your ecosystem

#5
post #3
post #2

Yes, there is more to it than you're aware of. For starters, how do you think Twitter's API customers would monetize their applications? They would be paying Twitter for the privilege of attempting to monetize tweets. It only makes sense to pay if they can extract more value than Twitter can. If someone finds a way to monetize tweets that's more effective than Twitter's, then Twitter would have an incentive to copy i…

I think you missed the point of the article. Right now, Twitter has rigid limits in place - you don't think it'd be better for developers to at least know in advance they can go past that limit, even if it means they have to pay? There are many uses for twitter data outside of just repeating the tweets with a different design. There are quite a few Twitter apps that generate revenue and some have also been acquired b…

I didn't miss the point. Twitter does not want developers to go past that limit. Pay or no pay, it doesn't matter to Twitter. It's not part of the plan.

Re: Suggestion to Twitter: Here’s how you monetize without ruining your ecosystem

#6

Each has its own merits in the context of sports competitiveness, but in Twitter's case there is no reason for a hard cap at all. What does Twitter gain by putting a hard limit on API usage? There is a reason for a hard cap: the limit's goal is to ensure twitter-owned clients dominate the market for basic twitter use. You may have a point by saying that twitter can simply make the tax per additional tweet equal to th…

My argument is that they'd make much more revenue by taxing API than they hope to make with ads. Their API usage is obscene and growing rapidly, while ads don't really fit their users usage patterns.

Re: Suggestion to Twitter: Here’s how you monetize without ruining your ecosystem

#7
post #5
post #3

Earlier quoted context omitted.

I think you missed the point of the article. Right now, Twitter has rigid limits in place - you don't think it'd be better for developers to at least know in advance they can go past that limit, even if it means they have to pay? There are many uses for twitter data outside of just repeating the tweets with a different design. There are quite a few Twitter apps that generate revenue and some have also been acquired b…

I didn't miss the point. Twitter does not want developers to go past that limit. Pay or no pay, it doesn't matter to Twitter. It's not part of the plan.

Glad to hear this was never a discussion. You should've just stated originally that you know exactly what twitter wants, and left it there.

Re: Suggestion to Twitter: Here’s how you monetize without ruining your ecosystem

#8
post #6

Each has its own merits in the context of sports competitiveness, but in Twitter's case there is no reason for a hard cap at all. What does Twitter gain by putting a hard limit on API usage? There is a reason for a hard cap: the limit's goal is to ensure twitter-owned clients dominate the market for basic twitter use. You may have a point by saying that twitter can simply make the tax per additional tweet equal to th…

My argument is that they'd make much more revenue by taxing API than they hope to make with ads. Their API usage is obscene and growing rapidly, while ads don't really fit their users usage patterns.

They are making hundreds of millions of dollars with ads. What do you mean by "ads don't really fit their users usage patterns"?

I hate ads as much as anyone, but they are working for Twitter. If you think Twitter's executives don't know what they are doing, you underestimate them.

Re: Suggestion to Twitter: Here’s how you monetize without ruining your ecosystem

#9
post #7
post #5

Earlier quoted context omitted.

I didn't miss the point. Twitter does not want developers to go past that limit. Pay or no pay, it doesn't matter to Twitter. It's not part of the plan.

Glad to hear this was never a discussion. You should've just stated originally that you know exactly what twitter wants, and left it there.

Have you spoken with someone at Twitter about this? I have. If you haven't, there's nothing to discuss.

Re: Suggestion to Twitter: Here’s how you monetize without ruining your ecosystem

#10
post #8
post #6

Earlier quoted context omitted.

My argument is that they'd make much more revenue by taxing API than they hope to make with ads. Their API usage is obscene and growing rapidly, while ads don't really fit their users usage patterns.

They are making hundreds of millions of dollars with ads. What do you mean by "ads don't really fit their users usage patterns"? I hate ads as much as anyone, but they are working for Twitter. If you think Twitter's executives don't know what they are doing, you underestimate them.

According to this article, they made $140M in 2011 from ads. Of course, they project to make 3 times as much by 2014, but that remains to be seen. I think they can make much more by leveraging their API usage, which is larger than all the other large tech companies.

http://thenextweb.com/twitter/2012/01/31/twitters-advertisin...

Regarding ads, people consume twitter for opinions, networking and links to content. They are rarely with purchase intent, as opposed to when they are actively searching something on Google, for instance. Facebook are facing a similar problem with their ads, but Facebook still has a much larger userbase and the time spent on the site is much larger than with Twitter. Promoted tweets are too obvious and often have a reverse effect on people who receive it.

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