Twitter Plans To Start Making Money .pdf
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12/13/2015
Twitter Plans To Start Making Money Off People Who Don't Even Have Accounts
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The social network is experimenting with advertisements for loggedout users.
Anya Geroge Tharakan
12/10/2015 04:08 pm ET | Updated 2 days ago
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Twitter Inc said it was testing a feature to show advertisements to people who read
tweets without logging in, as it tries to make good on its longtime ambition to
monetize nonactive users.
The company said the feature will help it cash in on an additional half a billion
people each month, pushing its shares up as much as 7.8 percent to $26.21 on
Thursday their biggest percentage gain in two months.
The promoted tweets and videos will be available on Twitter's desktop website,
particularly on people's profile pages and "tweet detail" pages that highlight specific
tweets.
The move will be welcomed by advertisers who have shied away from Twitter
saying it doesn't have enough users, unlike rival Facebook Inc, which boasts more
than 1.55 billion monthly active users (MAUs). Twitter has 320 million MAUs.
Facebook, which had once struggled to monetize its social networking platform, has
been consistently launching tools to capture ad dollars.
Twitter had first broached this idea last year when Chief Financial Officer Anthony
Noto said it would be possible to monetize loggedout users once the company
"nailed the consumer experience".
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12/13/2015
Twitter Plans To Start Making Money Off People Who Don't Even Have Accounts
The company has said that ads targeted at loggedout users or people who view
tweets without a Twitter account would bring in $2.50 in average revenue per user
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Twitter has been experimenting under Jack Dorsey the company's cofounder who
returned as chief executive in October to make the website more engaging.
"The best thing to happen under Jack Dorsey would be the fact that they are going
to rethink all aspects of their business," Monness, Crespi, Hardt, & Co Inc analyst
James Cakmak said.
"Before it was a case of doing the same thing and hoping things change."
In the few months under Dorsey, Twitter introduced the 'Moments' feature, added
polls to tweets, laid off about 8 percent of its workforce and rolled out a "buy"
button.
The company also said earlier this week it was testing a feature where tweets
would be sorted by relevance instead of reverse chronological order.
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The new ads feature was being tested with some advertisers in the United States,
UK, Japan and Australia, Twitter said on Thursday. The company plans to roll it out
to more markets around the world.
(Reporting by Anya George Tharakan in Bengaluru; Editing by Don Sebastian,
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MORE: Twitter, Twitter Ads, Jack Dorsey, Jack Dorsey Twitter
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Twitter Plans To Start Making Money Off People Who Don't Even Have Accounts
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