Twitter CEO claims mobile becoming as profitable as Web

Life

8 June 2012

Twitter CEO Dick Costolo has revealed that in the last quarter the microblogging service, was starting to generate more advertising revenue from its mobile presence than from its website. Although Costolo qualified his claim saying mobile outperformed Web only on certain days, the news won’t come as any surprise to the smartphone-friendly service, with its short, sharp updates and limited feature set.

This announcement comes in stark contrast to Facebook’s experience. Despite boasting some 900 million users, the social network has yet to develop a revenue model for its branded app.

Analyst firm Ovum’s chief technical analyst Jan Dawson said Twitter’s news is an attempt to make clear that Facebook’s struggles on the mobile front aren’t being experienced across all social networks. Dawson said that Twitter has its roots in the mobile platform, the 140 character limit was taken from the 160 character limit in a text message.

 

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"This is not to say that Twitter doesn’t have challenges of its own in mobile," continued Dawson. "In contrast to Facebook, which hasn’t found a way to monetise the use of its own clients on mobile devices, Twitter’s biggest challenge will be finding a way to monetise the use of third party clients on mobile devices, which were the only option in the early days and are still very popular. Twitter has tried to overcome that problem by acquiring several of the most popular clients, but it still doesn’t have a definitive strategy for monetising mobile either."

Fiona Donnellan

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