Twitter is a much better business than you think.
Adam Rifkin stashed this in Twitter!
We called it a year ago: The Interest Graph is very valuable.
Fast forward to now.
It turns out that promoted tweets exceed the expectations of those who pay for them:
Twitter charges ads by "engagement" (clicks, replies, retweets or follows), and ads can generate social media conversations around a brand. In other words, Twitter may have cracked the code on allowing advertisers to create genuine social media conversations around a brand. That would be a tool marketers simply couldn't get enough of.
Let's not get too ahead of ourselves, because they still have to improve a lot of things.
But as of right now, the only one who can stop Twitter is Twitter itself.
And that's an enviable position.
See also: Is the interest graph social?
yup, I'm very long twitter. my instinct is that over time engagement on ads will be better than the "average tweet" because the content will be better and include links to something relatively interesting. Considering I almost use Twitter as a TV replacement sometimes particularly around following live sports, the idea of "commercials" between the tweets doesn't seem so surprising.