Even as Facebook struggles to generate advertising revenues from the mobile platform, Twitter, the other popular social networking platform has declared that it has no such problem in making money from the mobile space. The company only started selling ads on the mobile platform early this year, February to be precise.
Twitter CEO, Dick Costolo has said that the site generated more advertising revenue from its mobile platform than from its website on many days in the last quarter. This was revealed by him at a recent Economist Conference. In fact news site AllthingsD reported Costolo saying, “Even though we launched our ad platform on the web, and only started running ads on mobile a few months ago, it has already been the case a couple weeks ago that we saw mobile ad revenue for the first time in a day be greater than non-mobile revenue. So mobile revenue for us is already doing delightfully well; I couldn’t be happier with it.”
The company has been earning its money from the Promoted Tweets on phones. The mobile version supposedly has been doing better than the desktop version, explained Costolo. This is true because Twitter has been popular on the mobile for a long time. Stressing on this, Jan Dawson, chief telecoms analyst, Ovum says, “Twitter has a long heritage in mobile (the 140-character limit was driven by the 160-character limit of text messages) and its management clearly wants people to understand that it doesn’t see the same challenges in monetizing mobile as Facebook does.”
Dawson further believes that these remarks are an attempt to make clear that Facebook’s mobile struggles are unique to Facebook and not endemic to social networks as a whole. “It’s as if he’s saying, ‘We’re not Facebook – don’t tar us with the same brush. We’re doing just fine in mobile, thank you very much!’,” she adds.
During the conference Costolo also said that 60 percent of Twitter’s 140 million users access the service through a mobile. In the last six months 55 percent accessed Twitter over mobile. According to him, this is because more people are engaed in a conversation over a mobile than they are oiver a PC.
This is not to say that Twitter doesn’t have challenges of its own in mobile. Dawson feels that in contrast to Facebook, which hasn’t found a way to monetize the use of its own clients on mobile devices, Twitter’s biggest challenge will be finding a way to monetize the use of third-party clients on mobile devices, which were the only option in the early days and are still very popular. “Twitter has tried to overcome that problem by acquiring several of the most popular clients, but it still doesn’t have a definitive strategy for monetizing mobile either,” she explains. Even though the challenges might exist for Twitter to get the right amount of revenue over mobile, but it is the way to go for the micro blogging site since mobile devices are THE device for the users to stay connected.