A good friend of mine, Jim Matorin, Business Catalyst, founder of SMARTKETING called me yesterday.  We had not connected for a while.  Twitter was one of the main reasons Jim called.  I'll share some of the highlights of our discussion as this seems to be a regular conversation I have and is cause for much speculation regarding revenue models of various forms of Social Media. How long can they last?

Jim Watched a Charlie Rose rerun over the weekend.  An interesting interview conducted back in February with Evan Williams, co-founder & CEO of Twitter. Interview Link It reminded me that you and I have not talked about Twitter lately.  What is your latest spin?

Jackie Twitter seems more relevant to businesses and the ability to share information, versus a social application like Facebook’s updates. That has been somewhat validated by surveys taken where people find information links to be most valuable. How about you Jimmy?

Jimmy Two things resonate for me right now.  First, I think Twitter is still in its infancy, a toddler, thus evolving.  Twitter’s potential is great, especially as it relates to business.  It will be a great tool for companies to have real time conversation with their consumers.  Second, on a personal note, I am totally fascinated by people’s need to connect with other people, exhibit transparency, even if they are total strangers.  As a result, Twitter, along with Facebook are having a major impact on modern relationships.  I find today’s relationships more ephemeral compared to those we formulated prior to the advent of social media.  There is no substitution for face time when it comes to connecting.

Jackie Agree face to face is still key to formulating one-on-one relationships. Social networks enable you to find someone with like interests or someone you may want to reach out to and meet in person (what a concept) to add to your circle of real friends. Beyond that, social media can be viewed as entertainment and education.

Jimmy At what point do you think Twitter will make money?

Jackie I’ve always thought Twitter’s value is more a business application versus ‘friend’ application, like Facebook.  Twitter has figured this out because I have read they are launching a metrics product.   I can see Twitter also trying to model themselves after Google and offer something like ‘paid search’ too.

Jimmy We are on the same page.  Based on what I have read, Twitter is working on how they will make money via its information seeking capabilities activities rather than advertising...

Jackie We must be reading the same feeds.

Jimmy You’re a consumer marketing guru.  Think about the power of providing some form of detailed metrics as it relates to tweeting a targeted audience.  For example, if a company launches a new product, Twitter should be able to provide some form of measurement: tweets by market, by time of day, etc.  It would be extremely powerful if they could slice and dice it by demographic as well.

Jackie Let me build on that.  The fundamental question is what people find valuable about Twitter and how to enhance their experience for a revenue generating application.  Google is about information, so it makes sense they offer paid programs to get relevant information to users. Facebook is about social interaction which is why I believe advertisement on Facebook seems less than stellar.  People do not go to Facebook for information (generally), but for interaction. User groups and fan groups are more effective on Facebook.

Twitter’s value is in the ability to share information, a lot of information, from sources people deem credible as they choose to follow.  I do believe an analytic revenue model makes sense; making sure companies are connecting with people looking for their information.  I wonder if in this analytic model, Twitter would offer a company (or blogger) the ability to ‘ask’ someone to follow them.  Tweet Deck has a field of ‘recommended’ Twitters.  Perhaps companies can pay to be on that list based on key terms. At any rate, eventually there will be a consolidation of social media networks. SM is new and growing like any other industry in the growth years. Eventually, there is only so much room and time to get on a person’s consideration set. I see things coming together.

Jimmy What are your thoughts about Twitter building an advertising revenue model?

Jackie If the advertising model is similar to a banner ad on Facebook, I think users would find that intrusive.  If it’s advertising as in paid search (with limits), that might work.  What do you think?

Jimmy I apologize Jackie.  I would like to share my thoughts, but I have to go now.  I need to follow Andy Roddick’s latest tweets to see what is going on at the U. S. Open today.  I will speak to you later.

Please feel free to weigh in.
Jackie