Twitter is taking steps to become more advertiser-friendly, looking at the possibilities of putting small advertisements in users’ Twitter feeds. The company is also considering offering shopping deals similar to Groupon and providing advertisers with enhanced profiles with extra tools and pre-scheduled tweets. These options would join promoted tweets and promoted trends, Twitter’s current revenue generators.
The new advertising options could place promoted tweets from brands higher up in users’ timelines, highlighting the advertising among more recent updates from users’ friends. Earlier this year, similar advertising placement in Twitter’s iPhone app were removed after outraged users demanded an update with less (or at least, less obvious) advertising.
It’s clear that Twitter will continue to test their advertising options until they find one that is both profitable to the company and acceptable to Twitter users. Twitter’s expected revenues for 2011 are only about $100 million, pocket change compared with Facebook’s predicted $3.5 billion in revenues from display advertising. [ft.com]