Twitter expects hundreds of advertisers.
SAN FRANCISCO: Twitter, the rapidly expanding microblogging service, plans to have hundreds of advertisers using its new ad system in the fourth quarter as the company ramps up plans to become a self-sustaining, profitable business.
Chief Operating Officer Dick Costolo said the company s newly-launched advertising system would provide a key pillar in Twitter s plans to turns its popular service into a significant money-making operation that can justify its rich valuation.
"We were valued at over a billion dollars last September, so we re going to live in a world where we need to be generating hundreds of millions of dollars in revenue," Costolo told Reuters. "We re thinking about big, big numbers."
Costolo said he believed the company will eventually become profitable. But he declined to provide a timeframe for achieving profitability, which the company is currently hoping to generate from its advertising system and a forthcoming commercial accounts business, due to launch in July or August.
"We are absolutely not modeling out we need to be at over a hundred million by this date, and over a billion by this date and over 10 billion by this date," he said.
The company is currently in the process of adding roughly another dozen advertisers to its so-called "Promoted Tweets" program which it unveiled with five participating advertisers last month, Costolo said. By the fourth quarter, Costolo expects hundreds of advertisers.
"We really look to start to ramp this up aggressively in Q3 and then really blow it open in Q4," Costolo said.
Twitter, which allows its 100 million users to send 140-character text messages, or Tweets, to groups of so-called followers, is one of the Web s most popular social networking services, along with Facebook and LinkedIn.
The service is increasingly challenging established Web giants such as Yahoo Inc and Google Inc for consumers online time. In January, Google released a social messaging service called Google Buzz that mimics many of Twitter s features.
And on Tuesday, Facebook introduced a stripped-down version of its site, dubbed 0.facebook.com, designed to let cell phones quickly send Facebook messages without incurring wireless data charges.
Muscat Press and Publishing House SAOC 2009
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