According to The Wall Street Journal, Twitter is valued at $3.7 billion. The social network hasn’t generated a profit and is trying to incorporate advertising into its business model.
Interesting. So how is Twitter going to convince me to review an advertisement from Coca Cola? If Coca Cola starts “following” me, I can block them.
With only 8% of Internet consumers using Twitter, and the potential of Facebook, Google, Linkedin, or Yahoo! to leverage their communities with a Twitter-like product, I would think that Twitter would want to move quickly from collecting cash from venture capitalists and meager fees from Google, and market their base product more aggressively.
Besides, they’ll also have to factor in the Obama administration’s privacy office initiative. The administration wants to eventually draft rules that would require content aggregators to disclose how they collect commercial information on its users and how they intend to use it.
Should the administration be successful in getting these rules on the books, privacy regulation will become an unfamiliar maze that Twitter will have to navigate.