We probably need a separate discussion on twitter's business/ advertising model...
I'm sure when Twitter was devised they didn't have a business model in mind. They just wanted to build a quick messaging service as a side project. I met someone from Twitter, and yes I hammered him about their monetisation model =) . They are going to monetise through several ways, here's an example of two: 1. Promoted tweets 2. Access to the firehouse API I'm sure twitter was concerned when Bill Gross started acquiring twitter apps under the Uber Media umbrella. After all, he created Overture which was the original adwords model sold to Yahoo. So when Uber started inserting ads into the twitter stream, it violated the terms of service and hence twitter banned Ubermedia properties. Twitter is just CRUSHING developers in their ecosystem. They just announced last week they were going to create their own photosharing service and apps needed to move up the value chain. My 2 cents - I don't think twitter has figured out their business model yet or their road map. Happy to talk about this further over a beer at Silicon Beach! Cheers, Matt Ho Airbnb @inspiredworlds On Jun 7, 12:20 am, alan jones <alan.jo...@gmail.com> wrote: > Just because Startmate prefers not to invest in ad revenue-focused > businesses doesn't mean you shouldn't try and build an ad-revenue- > focused startup — there are other sources of funding out there! At > Startmate we're looking for a particular subset of startups and > startup founders because we think those are the people and companies > we can add the most value to (and hence get the most return on > investment from.) > > As others have said, ad revenue is not the only revenue source for a > social network. But for a social network to be successfully funded by > ad revenue, you need to > > - Identify a community that marketers want to reach, that is not well > served by other ad networks; > - Build a social network that this community wants to use > - Find a way to get them all to trial and then keep using it > - Build a critical mass of audience in that community that sustains > and grows itself > - Find a way to place advertising in the community that doesn't upset > the community's users > > You don't have to solve all those problems to be considered successful > — for instance, many would argue that Twitter hasn't yet delivered an > advertising solution that marketers need, nor placed advertising media > its users are comfortable with. But if I were Twitter I wouldn't be > resting easy just yet, either. > > Hope that helps, > > - alan jones > (Startmate investor and mentor)www.doingwords.com > > On Jun 5, 9:50 pm, Joshua Partogi <jpart...@fanstago.com> wrote: > > > > > > > > > Hi, > > > One of the criteria for submitting application to Startmate is that it > > must be a business that does not depend its revenue from advertising. > > From what I can see, social networking is one type of business where > > it gets its revenue from advertising. Looking at that criteria, does > > that mean businesses like social networking is not a viable business > > or won't succeed in Australia? Is there any example of social > > networking that come from Australia that did not succeed in tapping > > the market? What are the pitfall if we want to start a social > > networking in Australia? > > > Thank you for the insights and assistance. > > > Kind regards, > > Joshua. > > > -- > > @jpartogi -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Guidelines on discussion: http://groups.google.com/group/silicon-beach-australia/msg/351e183e1303508d?hl=en%3Fhl%3Den No lurkers! It is expected that you introduce yourself. To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to silicon-beach-australia+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
