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Twitter Hopes To Turn Tweets Into Cold Hard Cash
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Story By: Larry Stine

 

 

 
 
 
   
   
  Originally Published on: 11/10/2013

Social media giant Twitter is looking at how to make a buck on the back of T-V advertisers. CNN's Maggie Lake explains. From the tense final season of AMC's Breadking Bad, to the heart-pounding suspense of Showtime's Homeland, people glued to the programming on this screen, are now turning to this screen, to tweet about the action - live! It could help put Twitter on the path to profitability, a key point for investors. "Twitter has sort of stumbled on this position as the place people go to have conversations about the things that they are watching on T-V, that in theory could be a big opportunity for Twitter," says Nate Elliott of Forrester Research. During an interview with "All Things D," Twitter CEO Dick Costolo acknowledged the phenomenon. "Over the past few years we're recognized that Twitter has become the second screen for T-V and T-V is more fun with Twitter," says Costolo. For big events like the Academy Awards, live tweeting can be off the charts, almost 9-million tweets were sent during Oscars this year. And during the last Superbowl, more than 230,000 tweets were sent per minute. A new study says 55 percent of Americans watching T-V now do so with a second screen up and running at least sometimes. Costolo says this can be a win-win for Twitter and for T-V. "In a world where broadcasters, I think have thought of technology companies as competitors, we consider ourselves complementary to what those folks are doing," says Costolo. Indeed, a recent issue of Frbes talks about "How Twitter Will Save T-V And How T-V Will Save Twitter." But to do so, both mediums, must get creative. "Twitter can't just plaster lots of banner ads on its screen like Facebook and other sites do, so they have to find other ways to make money and they can do that by putting promoted tweets into the stream of content people see," says CNN's Maggie Lake. If Twitter can find a way to make money from even a fraction of thse tweets, it might easily reach the goal that it set in its I-P-O roadshow, a 40 percent profit margin, higher even, than Google's. Twitter is far from that goal right now, but every little live tweet helps. As the second screen gains in popularity, Twitter is hoping to turn 140 characters into cold hard cash.
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