The Twitter Problem: We Love This, But What Are We Going to Do For Money?
[The NYTimes today reveals that Twitter is getting ready to roll out an advertising model and a promotional tweet model to support their revenue stream. This post is a response.]
So Twitter is revealing it’s killer revenue strategy and it looks a lot like an old revenue model they tried with Microsoft called ExecTweets. Oh boy! So here’s the idea. According to the NYTimes article:
The advertising program, which Twitter calls Promoted Tweets, will show up when Twitter users search for keywords that the advertisers have bought to link to their ads. Later, Twitter plans to show promoted posts in the stream of Twitter posts, based on how relevant they might be to a particular user.
Several companies will run ads, including Best Buy, Virgin America, Starbucks and Bravo.
Man, I tell you what, that does not interest me in the least. I suspect it will be as successful as ExecTweets or say Facebook Ads.
So there are several problems that Twitter faces in trying to "monetize" itself. (Sounds pretty funny, to monetize oneself.)
- Don’t kill the goose as you are trying to figure out how to get the golden eggs.
- Permission-based marketing is the bomb, but if you haven’t been given that permission, it’s not permission-based. An opt-out means you DON’T have our permission. A default opt-in does NOT give you our permission either.
- 80% of Twitter’s traffic never hits Twitter.com. Why would we? The Twitter.com site sucks, to be blunt. If you try and use Twitter using only Twitter.com I pity your experience. The river of tweets is like a flood when you get a few active tweeters. (Yes, I’m an ACTIVE tweeter.) I suspect the next point is one of the primary reasons we don’t use Twitter.com.
- Managing your followers and friends using Twitter.com forces you to use a slow-loading, fail whale-prone, 20-people-per-page, system. Why Twitter Why! I say this to myself, every time I have to use Twitter.com to manage my account. As tools like Tweetdeck and Seesmic and Hootsuite get better and better, the Twitter.com site becomes less and less relevant.
The main objective for Twitter: Make money. Twitter is spending a lot of money *trying* to keep the fail whale at bay. And while investments are essential, the money train won’t last forever. Twitter must stabilize Twitter.com AND figure out how to make money with the beast they have created. All this "Do Only Good" crap is window dressing. They have not figured it out, and with so much money at stake, it’s rather embarrassing for any of the top brass at Twitter to admit it.
It would not bode well for Twitter executives for them to say, "Well folks, we’re still trying to figure it out." (Oh wait, this is exactly what they ARE or HAVE BEEN saying for a few years.) So here’s the best that they have to offer? A remake of ExecuTweets! This time with Starbucks, Best Buy and others. Really Twitter?
Taking off the gloves for just a second, I’m going to give Twitter a piece of my mind. (That they neither asked for or paid for in any way, I might need to add.)
EV and Biz Stone, here’s what you do. Draw the API line in the sand. If you want TWITTER FEEDS OF ANY KIND YOU WILL HAVE TO PAY TWITTER. Simple right?
Of course there will be a revolution. Many will scream and rebell. Perhaps this will be the moment where Google makes it’s STATUSPHERE play. (I don’t know what your sweetheart deal with Google was, but be prepared for them to eat your lunch when THEY are ready.)
But this might be the moment for you Twitter. This might be the very moment to make the BIG PLAY. And here’s more of the strategy.
When the 80% of your API – data feed consumers start seeing these screens (from my Tweetdeck, yesterday):
I tell you what would happen, as if you don’t already know. The proverbial feces would hit the fan. But here’s the cool part. Who is in the position of power at this point? I am talking leverage that goes well beyond telling the world you might develop or buy your own desktop app. (So what. I know you just did that.) Or you might develop or buy your own geo-location app. (So what.) But letting the entire community, and user base know, that you are about to charge for the API streams… Well, I admit that would be ballsy. It might be risking #1, the golden goose thing. But…
Here’s the deal though, to make this really work, you’ve got to fix the fail whale problem once and for all. In the enterprise world, the user base that makes global e-commerce go around, the "Oops There’s a Problem, But We’re Working On It" routine does not play. It does not play at all. You know how every time G-Mail is down for like a second, the entire tech world wrings its hand and curses Google’s grip on our data? Well, that’s what happens every time we try and USE TWITTER for something other than CHAT. When the fail whale arrives on the scene, anyone in *business* says, "Man, these Twitter cats can’t even keep their servers running, I don’t think I’m ready to give them any part of my corporate communication infrastructure."
And see, this is where a company like Yammer is making HUGE inroads. The fail whale does not exist on Yammer. And guess what, their service ROCKS. We used it at Dell. And I’ve used it since at other companies. (I have to say I prefer an integrated internal status tool like SocialText’s Signals, but Yammer will do.) And here’s one more rub. People are paying to use Yammer. Of course they are. If I can run it on my servers, and OWN the data, then we have a deal.
On the other hand, if YOU Twitter sell my data as your own, if YOU Twitter can’t keep the servers up during a conference like SXSW, while you profess to "Do Only Good," it’s not enough.
So here’s my plan for YOU Twitter: Squeeze the Twitter API into a money stream. Give everyone a few months to complain, negotiate, and seek other options and then DO IT.
No one is going to care about Promoted Tweets, or ExecTweets. I’m glad (Am I glad?) that you’ve found a few willing partners, paying good money (hopefully), to test flight your new revenue stream. But in the end, dear Twitter, you have only one thing that people want. And if you can’t figure out how to make money on the API… Well, the goose is as good as cooked, IMFHO.
- NYTimes: Twitter Unveils Plans to Draw Money From Ads
- ExecTweets by Twitter and Microsoft and Federated Media.
Further reflections on the quotes from the NYTimes story:
The ads will let businesses insert themselves into the stream of real-time conversation on Twitter to ensure their posts do not get buried in the flow. [PULEASE Spare Us. Didn’t the mighty Microsoft plan something like this for Vista and IE, back in the day. THIS is going to piss people off. Seriously!]
“When people are searching on Starbucks, what we really want to show them is that something is happening at Starbucks right now, and Promoted Tweets will give us a chance to do that,” said Chris Bruzzo, vice president of brand, content and online at Starbucks. [Maybe they are looking for a coupon. But I think they would search “coupon” if that were the case. And maybe it will be a good idea to introduce Couponing to Twitter. MAYBE. Sure, Dell has claimed almost unbelievable numbers with their Dell Factory Outlet on Twitter program. But people were ASKING for those coupons. Please refer to the permission-based marketing item above.]
I don’t know, maybe I’m being harsh here, but check out this image below. Is this how YOU see Twitter making the MILLIONS they need to make? Honestly?
And here are a few numbers to chew on for you analytically minded. Click on image to view the full-size grab. Or this link will run the analysis again.
Tags: advertising model, compete data, compete exectweets data, compete facebook data, compete promoted tweets data, compete twitter data, develop or buy, Draw the API line in the sand, exectweets, facebook ads, fail whale, fail whale follies, fail whale problem, hootsuite, make money, Permission-based, Permission-based marketing, pro tweets, problems on Twitter.com, professional tweets, Promoted Tweets, promotional tweet model, seesmic, sell my data as your own, service not found, socialtext, socialtext signals, squeeze the tweet, the twitter API, the twitter problem, tweetdeck, Tweets by Twitter, twitter, Twitter Ad, Twitter Advertising, Twitter Advertising Model, twitter API, twitter API is unavailable, twitter is down, twitter is up, twitter problems, twitter reveals revenue plan, twitter.com, yammer
TWITTER FAILS: Harken Tweeps Thy Tweeting Days are Numbered, The End Is Nye
Oh whoa is all of us when Twitter goes down for the last time. When the spermy whale fails eternal. When the birds of a feather can no longer flock together. When Tweetdeck implodes.
How long do you think it will take GOOGLE to completely replace the functionality of Twitter? I’m talking soup-to-nuts. APIs, database, server loading, failure recovery, account settings, preferences. Say they put 100 scientists and coders on the task. Or 1,000. Would Biz and EV have a prayer or a revenue model to stand on after a few months?
I can hear you saying, "But Google tried with Jaiku." And I nod in agreement with your sentiment, but not with the statement. Google doesn’t TRY much. Google either OWNS or it PAYS ATTENTION SOMEWHERE ELSE.
So have you seen the WAVE stuff? Let’s see: email, IM, threaded discussions, news, search, facebook-ish stuff, profiles… and if Google doesn’t OWN it guess what, they’ll add a little chiclet, a losenge, an iGoogle widget-like-thingy to RUN ANY APP YOU LIKE. And you might Google TWAVE (heck it might be more fun if you BING it.) if you are wondering what WAVE’s Twitter-sipper app will be.
But let’s say, Twitter does experience a major fail, say for more than their typical hour or two of annoying whales, service outages, maintenance updates, what-have-yous. Let’s say Twitter goes DOWN (TwitterIsDown.com) for say… three days. Three whole days, you pick the timezone. 72 hours of tweetfree living. Would that piss you off enough to join FriendFeed? And if you answered NO to that question, what would piss you off enough to begin looking for a service provider that could handle your requests. A service provider that didn’t have cultish rules and limits and seemingly pointed and personal "twitterjail" attacks.
So TWITTER IS STILL DOWN, is the big news story on the cover of the Tuesday NY Times. And by Thurday, when the CIRCUITS section is published, even David Pogue is mad! "The end is near my friends. I can’t post my TwitPic or my TwitStock or my NitTwit. I can’t get my social media game on without Twitter."
Here are what some are saying about just that. Let’s listen in, and I’ll be back with a wrap in a few minutes.
Twitter: Will It Implode Under the Weight of Its Hype? By Derek Harding, ClickZ, Jun 11, 2021
For some months now, I’ve been pondering the question of Twitter. Clearly it’s the most hyped social network of the moment.
Industry thought leaders, especially those in the e-mail arena, keep talking about it being a game changer. Leaders have even answered complex questions about reaching markets with the single word "Twitter." Then to cap it all off, "Time" magazine this month has a major piece about how Twitter is going to change everything, including business and marketing.
But I still don’t get it.
I’m not talking about the question of Twitter’s business model and whether it can find a solid revenue stream and build a profitable business. This is a significant concern. It isn’t clear that Twitter has a plan or a likely path to revenue.
and this from Mashable:
The Twitpocalypse Is Coming! Is Twitterland Doomed?!?, June 10th, 2009 | by Ben Parr
When Twitter goes down unexpectedly, the Twitterverse has often gone nuts with confusion and anger. It was only last year when Twitter Twitter reviews’s stability issues turned the fail whale into a running downtime joke. Even as recently as this January, Twitter couldn’t handle the keynote at MacWorld. And now, Twitter is magnitudes bigger, so what would happen if it went down in dramatic fashion?
Well, if you believe Twitpocalypse, we’re going to see something catastrophic on June 13th. In fact, this page, which has been making the social media rounds, predicts that Twitter will be ravaged with disaster at 5:05 AM ET (10:05 AM GMT). Specifically, it predicts third-party Twitter apps will crash, creating chaos across the Web. Could this really happen? And on what basis does this website predict a Twitpocalypse anyway?
But wait there’s more… you can Bing/Google/Yahoo it on your own. Perhaps you catch my WAVE or my drift or my TWEET-OF-DEATH around Juneteenth. Wait a sec. It’s JUNETEENTH when Twitter’s gonna fail. Is that Ironic or Funny? I forget which is which.
Tags: account settings, birds of a feather, chiclet, click-z, database server, david pogue, fail whale, failure recovery, google, google WAVE, jaiku, losenge, maintenance updates, mashable, ny times, revenue model, server loading, service outages, tweetdeck, twitter fails, twitter falls, twitter humor, twitter is down, twitter-sipper, WAVE, widget
Cloud Fail – Is The Fail Whale Coming to a Cloud Computing Platform Near You?
More often these days we are putting up with error messages like this one from Facebook.
So the Fail Whale has become an Icon for Twitter’s ignorance of performance and keeping the data cloud under control. But as we move, or as the industry tries to tell us we need to move, to the "cloud" how many more "We appreciate your patience" messages will we be seeing in the next year?
Twitter, the poster child of error messages has been developing a few more themes for it’s problems.
So Facebook is not immune to the problems, they just don’t handle it with such humor. I believe the "If it persists please come back in a few days. Thanks!" is a tone that will kill many a cloud computing effort.
Just because it’s a cloud, it’s still web "services" and your customers and their users need to be treated with respect. I am not saying the Fail Whale is a good alternative, but the Facebook message is an EPIC FAIL.
Imagine this scene: Okay let’s check on the inventory for our new widget, CLICK, SEARCH, pause… Wait wait wait. "We’re sorry, there was an ERROR, please check back LATER."
What the heck does that mean. Later? Is it a "few days" like Facebook’s flippant "we don’t really care about FB apps cause they are not really critical path to our business" reply. Or would a cute picture of someone flogging the server, hopefully not your BRAND of server, help ease the tension of the fact that YOU CANNOT GET YOUR JOB DONE.
How about this: "We are sorry the cloud has encountere some minor turbulence. Please wait a few seconds and try again. If you encounter this error again please use the contact method of your choice: emailaddress, twitteraddress, livechatlink, submitaticket, phonenumber."
Now that’s the response I would be looking for. Outside of that, I’m off the cloud for less turbulent options, known as MY HARD DRIVE and MY SERVERS.
Tags: a few kinks, brand, cloud computing, cloud fail, cloud support, customer service, data cloud, epic fail, error messages, fail whale, in the cloud, private cloud, public cloud, service and support, service business, the cloud, try again, try again in a few days, we appreciate your patience
Twitter’s #@!# Whale! Call It a "Small Settings Update" But I Call It MAJOR FAIL
[Update 11:00 am CST – Biz Responds at end of post]
So now comes before the twitterverse the honorable yet questionable Biz Stone on the Twitter Blog!
Small Settings Update (They are kidding Right?)
We’ve updated the Notices section of Settings to better reflect how folks are using Twitter regarding replies. Based on usage patterns and feedback, we’ve learned most people want to see when someone they follow replies to another person they follow—it’s a good way to stay in the loop. However, receiving one-sided fragments via replies sent to folks you don’t follow in your timeline is undesirable. Today’s update removes this undesirable and confusing option.
So effective immediately is you will no longer see your friends @ replies to folks you don’t follow.
Holy FAIL WHALE! This is absolutely the primary way I find new people to follow. Discovery on Twitter is part of the Magic.
Let’s review DM biz (nobody but Biz sees) // @ replies @biz (everybody sees) // so what about RT‘s let’s see, perhaps a minor update removing the RT feature all together. Or perhaps RT will only show up if you follow both the Tweeter and the Original Tweeter. UG!
Here is what they have to say about that in the same post:
The Importance of Discovery
"Spotting new folks in tweets is an interesting way to check out new profiles and find new people to follow. Despite this update, you’ll still see mentions or references linking to people you don’t follow. For example, you’ll continue to see, "Ev meeting with @biz about work stuff" even if you don’t follow @biz. We’ll be introducing better ways to discover and follow interesting accounts as we release more features in this space." Or maybe delete features that were working fine without really thinking of the impact of something that seems so "SMALL!"
Oh, okay, trust the company that can’t keep their servers up to release more features that will fill this void they are creating. Oh, let me guess, the "paid Twitter account" can control all kinds of cool functions. Like seeing all of the @ replies!
So folks, here is a tipping point. Twitter has removed a feature, "Based on usage patterns and feedback" that was far and away the most useful discovery process I had. Follow someone interesting and see who they are tweeting with. It’s easy enough to click on the @-ed person’s profile to see what the rest of the conversation is about. But now you CAN’T.
The spermy blast of the #@!# Whale blows hard today.
[Update from BIZ WED 13, 11AM CST]
We’re getting a ton of extremely useful feedback about yesterday’s update to Settings. The engineering team reminded me that there were serious technical reasons why that setting had to go or be entirely rebuilt—it wouldn’t have lasted long even if we thought it was the best thing ever. Nevertheless, it’s amazing to wake up and see all the tweets about this change.
We’re hearing your feedback and reading through it all. One of the strongest signals is that folks were using this setting to discover and follow new and interesting accounts—this is something we absolutely want to support. Our product, design, user experience, and technical teams [the teams that deleted this feature in the first place] have started brainstorming a way to surface a new, scalable way to address this need. [Oh boy, stay tuned. Do they really have a UX and Design team? What are they desiging, the update for the Fail Whale? Those cute little “somethings wrong” graphics?]
Please stay tuned and thank you again for all the feedback.
Other posts about kicking ass in social media:
- 6 Step Process for Refreshing Your Online Content
- RE: The Death of Pay Per Click Advertising (PPC): Not So Fast, Let’s Examine
- Web Referrals: Know Your Metrics, Know Your Tools – Evaluating Google+
- 6 Step Twitter Growth Process: Results +753
- Let’s Talk About Your Evil Plan(tm) – Yeah, But What Else Are You Doing?
- The Quick Course in Online Marketing: Big Picture (Social Media, Search Engine, eMail, Content Marketing)
- New Web Design Standards: Flexible-Width and non-IE Browsers Abound
- 8 Steps Getting Social Media To 5 Goals & 2 Wins the [INFOGRAPHIC]
- ROI ROI ROI and Social Media; We Need to Have This Discussion Again
- Pinterest and the Power of Social Bookmarking: Tag Yourself (Web Design is Dead)
- Social Media MBA – The Reading List
See all of the Social Media Marketing Videos on the Social U. page.
Tags: @replies, biz responds, biz stone, discovery with twitter, fail whale, fail whale alternatives, follow, holy fail whale, homer – the new fail whale, homer simpson, how folks are using twitter, small settings update, twitter, twitter blog, twitter fail, twitter responds, twitterfail, wtf whale
haiku 2 twitter – 4-17-09
day of failing falling whales
come join the haiku 2 twitter room on friendfeed
And for your Twitter enjoyment please see the Twitter Joker’s post of alternative Fail Whale images.
Tags: fail whale, fail whale animation, haiku, haiku to twitter, poetics, poetry, twitter fail, twitter fail whale, twitter haiku, twitter poetry