Here’s a tweet: Twitter is hoping its hire of a hot shot Wall Street banker as the new CFO, as well as its shopping spree for mobile ad firms, will help it turn the corner.
In a story at The Motley Fool, Mark Holder says, “Social media companies that started off as free-to-use services without advertising face a major dilemma: how to appropriately monetize user traffic without alienating the user base.”
Holder talks about Facebook’s monetization efforts, which may serve as a lesson for Twitter.
“Facebook dealt with these issues, and as a result the company made a recent move to purchase an advertising technology firm in order to improve ads on the site. But the ultimate question is whether these social media giants are doing enough to attract users with site enhancements focused on advertising efforts,” Holder writes.
Is advertising technology enough? Can Twitter turn it around without eliciting angry Twitter user tweets?
Check out Holder’s whole column here.