Social Media and Social Networking

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Twitter in No Hurry for Ads, Plans to Increase Staff

Posted by Vaibhav Kalamdani on May 18, 2009

twitterWhile most of the social networking firms are worried about gaining advertisements at the moment, there is one social network that is keeping its cool and focusing on building a strong foundation. Twitter, a barely 2 to 3 years old company, is still finding ways to earn money, but not considering too much about advertising at this point of time, according to a news story at Reuters.

Twitter is developing various add-on tools and services to cater to its professional set of users including businesses, in order to create a revenue stream for the company, said co-founder Biz Stone. However, he rebuffed the idea of selling ads on the site currently, in spite of the fact that ad revenue is crucial to manage a Web business while keeping services free for the users.

Besides stating that advertising is just not quite as interesting to the company, Stone mentioned few other reasons for not pursuing advertising. He said that displaying ads next to messages (tweets) could annoy users, and also that the company doesn’t have, and isn’t looking to recruit people to create an advertising-based business.

Talking about recruitment, Twitter plans to double its staff by the end of this year. Today, the company has over 40 employees, who are helping it to grow phenomenally on the Web. Just few days back, the San Francisco, California-based giant achieved 3,000% growth in a year and recorded a staggering increase in visitors from the US.

Like MySpace and Facebook, Twitter too understands that mobile social networking is on the rise, and hence may strike revenue-sharing deals with mobile phone carriers in the near future. Stone confirmed that the company has already had talks with some of the carriers to ensure that the service works on their text-messaging networks. Also, with a strong support from venture-capitalists, the company does not plan to go for an IPO (Initial Public Offering) at present.

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