Will a lack of a sustainable business model stop Twitter's growth spurt in its tracks?
There is no denying the Twitter phenomenon, as it is much more than 140 characters or less. Yet, it is also not the first game-changer, and probably won't be the last. But just as search introduced the world to a new way to find information, Twitter (or its generic term, microblogging) has become an unstoppable phenomenon whose evolution has ramifications for all marketers.
Twitter may not be the most highly trafficked or used of the social media networks (Facebook has that distinction), but it has captured the public's imagination and pierced the C-level suite like nothing else we have seen emerge in the digital space. C-level executives and marketers at every level, across multiple marketing disciplines from PR, digital, advertising, and so forth, are starting to ask questions -- if they are not already testing programs and applications for the tool.
Some have questioned if Twitter will continue to thrive if it monetizes; but how can it expect to remain viable if it doesn't come up with some way to sustain itself financially? Other en vogue web tools and technologies have experienced "flavor-of-the-month" popularity, only to flame out or die down -- internet history is littered with trends that have passed into relative obscurity when they couldn't pay the bills (remember Kozmo.com, or Pets.com?). And even some industry mainstays are feeling the heat of the competition. For example, the eternal client question, "Why am I not in the top 10 search results?" is now becoming, "Why are we not on Twitter?"
While it is important to consider what the benefits are of being on Twitter today, it is also relevant to consider where it will be tomorrow, as commerce and communications evolve to meet our customers' changing needs and demands.
The here and now of Twitter
Currently, Twitter has demonstrated its value to the public, whether it be as a mechanism for real-time citizen journalism, a tool for connecting with each other, or a means to exchange relevant information. Marketers are using Twitter to reflect their brands' personalities and as a direct line of contact with product advocates, both existing and potential. Examples of success stories abound from brands like Dell Computers, Whole Foods, Zappos, and others. (For a snapshot of some select Twitter all-stars, take a look at my previous article on the subject.)
While brands and individuals using Twitter are extracting value, Twitter itself doesn't make any money from these initiatives, and there is as of yet no clear-cut business model.
Twitter is not the only one challenged with how it is going to make money and continue to be viable. Other social media platforms such as Facebook struggle with the same thing. More old world/new media kin, such as search engines, faced the same challenge earlier in their development.
So what can we learn about Twitter from the evolutions and histories of its forefathers?
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