Twitter Gains Funds, Plans to Expand…And the Search for Monetization Success Continues

Last week Twitter announced via its blog, that it had indeed received a large investment from a Russian fund, DST Global. It is reported that the actual investment rings close to $800 million, which would bring Twitter’s value up to a whopping $8 billion. Twitter has committed to utilizing the funds for innovation, investments and increasing talent.

Here are the highlights from Twitter’s official blog post, boasting a rapid growth in users and tweets per day over the last year:

“Twitter continues to grow around the globe at a record pace. We’ve come very far in a short time. Now we have an opportunity to expand Twitter’s reach with a significant round of funding led by the venture firm DST Global, with the participation of several of our existing investors. We will use these resources to aggressively innovate, hire more great people and invest in international expansion.”

So now you may be wondering how this will affect you and your daily ritual of tweeting. There is some speculation that this new investment is in direct correlation with Twitter’s announcement made the previous week about its advertising feature.

Twitter positions the ‘experiment’ as being a convenience to its users and promises to hold the same view on advertising as always, that is to keep its users first. Unlike Facebook, Twitter will only allow advertising tweets in your feed from brands you choose to follow. This feature will place the tweets at the top of your feed and will allow them to easily be dismissed with a single click.

If you currently follow JetBlue, Best Western, Dell, Gatorade, Groupon, HBO, LivingSocial, Microsoft Xbox, Red Bull, Sephora, Starbucks, Summit Entertainment’s “50/50”, TNT or Virgin America among others, you can expect marketing tweets in the upcoming weeks.

The question that remains is not only how consumers will respond, but also what type of return on investment brands will see from these opportunities. What are your thoughts on the matter?

Posted on August 11, 2011, in The Hit Board and tagged , , , , , . Bookmark the permalink. Leave a comment.

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