It would be tough to argue that Twitter hasnt been successful. But up to now, the micro-blogging website hasnt been profitable. The company hopes that will all change as it announces a new CEO, Dick Costolo.
Costolo replaces Evan Williams, who is stepping aside to focus on product strategy. The 47-year-old Costol has been leading the companys advertising efforts since he joined Twitters team in 2009. Before that, he worked in advertising at Google.
The success of Twitters advertising effort, which officially launched in April, remains up in the air. The Wall Street Journal reports that Verizon Wireless and Virgin America have claimed success in placing its product messages on the site, while others say theyre still experimenting with it. In all, the website has signed up 30 well-known name brands to advertise, and the company claims 5 percent of users are interacting with ads, which is better than the average for online ad campaigns.
Estimates of Twitters value have been out of this world, with some claiming the company of 300 employees could be worth $1 billion. The site has seen a 76 percent increase in unique visitors in the past year, which is better than rival Facebook; yet Facebook is still far and away the leader in the social media space.
The Journal reports that advertisers will increase spending on social networking sites by 30 percent this year, to $3.3 billion.