With all that’s been stirring in the news lately, my blog today is about Twitter (the micro-blogging service), outlining it’s unique (and inspiring) business growth, as well as providing you with insight into how you might consider using Twitter for your business.

Twitter is legitimately evolving in ways that many critics may not have expected.  It’s hard to deny that this little ‘Twitter-Tweeter’ is sprouting big business wings!

On April 15th, revealing a long-awaited monetization plan, Twitter took their 1st significant step toward a revenue generating business model with “PROMOTED TWEETS“–ADS– which strive to maintain user-integrity.

So, you may ask, “Come on… How powerful can Twitter’s little ‘tweets’ really become?”

Well, take a look at these 6 categories for growth… and you tell me!:

1.  MASSIVE USER GROWTH & MARKET PENETRATION

• Since the Silicon Valley company started up in 2007, it has experienced phenomenal user growth.  According to comScore, Twitter.com had 22.3 million unique visitors (just for the month of March)—that’s up from 524,000 a year ago! (That does not even include the millions more who use the service through third-party smartphone and Web applications like TweetDeck or Tweetie).
• Twitter also disclosed at their CHIRP conference that it has 106 million registered users and is adding new users at a rate of 300,000 a day. –Those customers write 55 million daily posts, and 180 million people log on to Twitter.com each month to read them.

2.  DEVELOPING, LEARNING & STRATEGIZING

• Twitter has taken the time to develop and get to know their user-market first…learn from them… and then work on their money-making business models.  Twitter founders say they are using a developmental strategy similar to Google. (See stats and quotes in the NY Times).
• “They’ve gone from a data play to a platform play,” said Jeremiah Owyang, a partner at Altimeter Group (a digital strategy consulting firm). “You’re seeing the same behavior that Facebook, Google and other online communities have done. This is a natural evolution of a Web company.”

3.  A STRONG USER FOCUS & A ‘RESONANCE SCORE’ (to seek complementary monetary strategies)

• Twitter CEO, Mr. Costolo said, “This new ad platform is different, because the promoted posts also exist in the organic Twitter stream.”
• If an ad post does not reach a certain “Resonance Score” (a measuring response system based on 9 factors), Twitter will no longer show it as a promoted post.–That means the company will not have to pay for it, and users will not see ads if they do not find it useful.
• Twitter says they also have plans in the future to show ‘promoted posts’ in the stream of ‘Twitter posts,’ based on how relevant they might be to a particular use.  (See more stats and quotes in the NY Times).

4.  COLLABORATION, ACQUISITIONS, NEW FEATURES & APPLICATIONS

• Twitter has an application for the iPhone and iPad. Twitter acquired the iPhone application “Tweetie” from developer Loren Brichter, expanding their mobile market and offering it for FREE at the ‘App Store.’
• Twitter is including Geo-Location Services, a database of places and additional metadata for posts. Twitter is also developing @anywhere, a new service that lets people gain access to Twitter from elsewhere on the Web.
• Developers have built more than 100,000 Twitter apps and 75% of Twitter’s traffic comes from people using these apps instead of Twitter.com.
• Twitter can be found almost everywhere these days– Linkedin, Blog Sites, News Sources, Facebook and more.
  

5. BIG CORPORATE PARTICIPATION

• Starbucks. Chris Bruzzo, Vice President of Brand, Content and Online at Starbucks says, “When people are searching on Starbucks, what we really want to show them is that something is happening at Starbucks right now, and ‘Promoted Tweets’ will give us a chance to do that.”
• Movie Studios. The Studios have already been writing Twitter posts about new movies. Studies are finding that the influence of conversations people were having about movies has an enormous impact in social media platforms (in Facebook and Twitter). Bernardo Huberman, Senior Fellow and Director of the Social Computing Lab at Hewlett-Packard’s Research and Development Arm and co-author of a recent study, found that the chatter on Twitter can help to more accurately forecast box-office revenue for movies. But, he is not convinced they can change people’s opinions. However, if a new movie is getting negative reaction, the studio could use the ads to link to a positive review, for example.
• Best Buy, Virgin America, Bravo, and more. Large businesses from retailers, the airlines to television channels are agreeing to engage in ‘Promoted Tweets.’

6. POWERFUL USES IN POLITICS, DIPLOMACY, HISTORY, ETC.

• ‘The Library of Congress’ is Archiving Tweets. The 210-year-old guardian of knowledge and cultural history will be archiving the collected works of Twitter.  Library officials explained it as another step in the Library’s embrace of digital media. Academic researchers also seem pleased, saying that the historical records of the past tend to be somewhat elitist because of its selectivity.  “This is an entirely new addition to the historical record, the second-by-second history of ordinary people,” said Fred R. Shapiro, associate librarian and lecturer at the Yale Law School.  Twitter can make a mark in history!

• Political Power and Opportunity. We can’t forget that President Obama used Twitter, Facebook and YouTube very successfully for his presidential campaign.  Secretary of State Hillary Rodham Clinton speaks regularly about the power of e-diplomacy, particularly in places where the mass media are repressed.  --Just look at the role Twitter played in Iran’s Uprising.

The following are 3 ways you can use Twitter for your marketing:

1.  Twitter as a Market Research & Signaling Tool:

Companies are becoming “TWITTER LISTENERS,” engaging in interactive conversation as well as using search tools like search.twitter.com or desktop applications like TweetDeck. These are easy ways to keep track of what’s being said about your company, products, and your industry.  Smart companies will use Twitter as a signaling feed to identify opportunities as well as an early warning system for problems.

2.  Twitter as a Direct Marketing Tool:

This is a marketing or public relations channel, much like an extension of your company Blogs (they can also link to your Blogs).  However, businesses have to be careful not to use self-serving promotional Tweets, which can damage reputations.  Twitter folks like an authentic personal touch.  Be authentic, educational and helpful.

3.  Twitter as an Indirect Marketing Tool:

This use allows your employees to tweet, using Twitter to enhance their own personal reputations, which in turn can reflect positively on your company’s reputation. —It can show unique leadership qualities as well as generate further enthusiasm for product launches, industry developments, etc.  This can be used very positively.  However, it can also be negative. –Take the case of the Yahoo employee who twittered throughout layoffs.  –That didn’t shine such a positive light on Yahoo.

***Many celebrities, solo-professionals and athletes use Twitter;  even ballerinas are twittering, bringing a more personal and relate-able human face to ‘the ballet’! (Read more in the NY Times article)

Web Marketing Therapy Related Links:

• Social Media Networking: What Does Ashton Kutcher’s Twitter-Triumph Over CNN Mean For Your Business?
• The Ultimate Combo: LinkedIn Now Works with Twitter!
• The 2009 Reference Guide: 99 Best Social Media & PR Blog Posts
• What is Your Social Networking Potential?