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Twitter looks to make money from ads aimed at logged-out users

  • Twitter Inc said it
    was testing a new feature to show advertisements to people who read tweets
    without logging in, as it tries to make good on its long-time ambition to monetize
    non-active users,
    Reuters reported.
  •  
  • The company said the
    • Twitter Inc said it
      was testing a new feature to show advertisements to people who read tweets
      without logging in, as it tries to make good on its long-time ambition to monetize
      non-active users,
      Reuters reported.
    •  
    • The company said the
      feature will help it cash in on an additional half a billion people each month,
      pushing its shares up as much as 7.8 percent to $26.21 on Thursday – their
      biggest percentage gain in two months.
    •  
    • The promoted tweets
      and videos will be available on Twitter’s desktop website, particularly on
      people’s profile pages and “tweet detail” pages that highlight
      specific tweets.
    •  
    • The move will be
      welcomed by advertisers who have shied away from Twitter saying it doesn’t have
      enough users, unlike rival Facebook Inc , which boasts more than 1.55 billion
      monthly active users (MAUs). Twitter has 320 million MAUs.
    •  
    • Facebook, which had
      once struggled to monetize its social networking platform, has been consistently
      launching tools to capture ad dollars.
    •  
    • Twitter had first
      broached this idea last year when Chief Financial Officer Anthony Noto said it
      would be possible to monetize logged-out users once the company “nailed
      the consumer experience”.
    •  
    • The company has said
      that ads targeted at logged-out users – or people who view tweets without a
      Twitter account – would bring in $2.50 in average revenue per user (ARPU). Its
      logged-in user base brings in more than $4 in ARPU.
    •  
    • Twitter has been
      experimenting under Jack Dorsey – the company’s co-founder who returned as
      chief executive in October – to make the website more engaging.
    •  
    • In the few months
      under Dorsey, Twitter introduced the ‘Moments’ feature, added polls to tweets,
      laid off about 8 percent of its workforce and rolled out a “buy”
      button.
    •  
    • The company also said
      earlier this week it was testing a feature where tweets would be sorted by
      relevance instead of reverse chronological order.

     

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