Venture capitalists have valued social networking company, Twitter Inc., at $1 billion and the company has made $4 million in annual revenue.
As of now, the company generates its income from companies paying to use Twitter data; however, that’s expected to change as of 2010. At a conference in San Fransisco, Chief Operating Officer Dick Costolo, said Twitter as plans to begin advertising business in the upcoming year.
Twitter, for those who have not been swept away in the revolution, allows people to post 140-character tweets, or status updates free of cost to a group of their followers. Since being founded in 2006, they have worked primarily to improve the site and gain users and with over 58 million subscribers, they have achieved their goal. Now with $155 million in venture capital it is ready to expand.
“We will have an advertising strategy,” said Costolo. “We want to do something that’s organic and in the flow of the way people already use Twitter -- and not, ‘Here’s the tweets and here are the ads.’”
Beyond the inclusion of advertising, Twitter is moving forward with commercial accounts, which would allow businesses to analyze the sites traffic.
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