Marketing community challenges Twitter's plans to begin charging brands

by Fiona Ramsay, marketingmagazine.co.uk 11-Feb-09, 11:10

LONDON - Marketers have weighed into the debate over how Twitter should monetise its micro-blogging service.

Following Twitter's confirmation in Marketing yesterday that it plans to start charging brands for commercial marketing activities, a debate has emerged over how the service can distinguish between individuals and brand users.

The service has gained ground in the UK thanks to celebrity users including Stephen Fry and Jonathan Ross.

Nathan Williams asks if Twitter would class 'celebrities' as businesses also: ‘Lets face it they are only on there to raise and maintain their public profiles, which in turn helps maintain their bankability.'

Some suggest that companies such as Dell and Starbucks, which use the site, would put more emphasis on the individuals tweeting on behalf of the company.

Robin Grant, managing director of agency We Are Social, said: ‘The challenge Twitter will face is that there's such a grey line between personal and commercial use. If I spend a lot of my time on Twitter talking about business-related stuff, where does that leave me?

‘For brands overtly using Twitter, it's not black and white either. Look at Ford's Scott Monty for example, who uses his personal account to represent Ford. Let's face it, Twitter is popular because it's such an interesting mix of both your personal and your business life - if fact, unlike Facebook or LinkedIn, it lets you be the whole you. Twitter will be risking a lot if they try to change this.'

Jamie Riddell, Cheeze director, said rather than charging brands, Twitter could promote its search tool and introduce revenue from pay per click. He adds: ‘An important element for brands will be credibility - at this time there are no checks on brands claiming who they are which [if used badly] could have brand detriment which derails the whole twitter/brand bandwagon.'

Others suggest that, like Facebook, Twitter could sell targeted ads within the stream.

But Brendan Mitchell argues that adding ‘an extra layer of services worth paying for is a better approach, as long as it doesn't alienate or lessen the initial free service'.

George Nimeh, managing director of Iris Digital, insists that the real value is not in charging companies for display ads. ‘Access to customer information for marketing, on the other hand, is certain to have tremendous appeal.'

Comments

Richard Philip - 11/02/2009

The reason behind Twitter's rapid growth is down the non-commercialisation and open element of the platform. As a user, the process of twitting is an honest and personal communication without out any commercial elements attached. One method Twitter could activate would be the looking at the interactivity of the service. Twitter could look to open the platform up to developers, enabling companies to build brand attached applications or tools, similar to the model employed by Facebook. Richard Philip Marketing Manager - The O2

Henry Elliss - 11/02/2009

I wrote a blog post yesterday on a very similar angle - what is going to happen to Twitter when all the celebrities who are currently flocking to it, get bored? http://tinyurl.com/cq6jmv I can't say I came to a firm conclusion, but I'm pretty sure that if investors have jumped on board by that point, they're going to get a bit of a shock when the fuss dies down again...

Mike Page - 11/02/2009

I thought there was some legislation that prevents commercial organisations passing themselves off as individuals in social media? Now I'm fairly certain that no one will have been dragged through the courts for this, but if Twitter monitors heavy users and there appears to be a trend in the Tweeting, surely they could set the precedent and drag the perpetrator through the courts, and then start charging them for the priviledge too!

Onto the celebs issue, increasing their self PR and therefore their own 'bankability'. True they are keeping themselves in the public eye, but no more than us marketers who blog and respond to blogs on august site such as this. We are all in fact promoting our selves to one degree or another - trying to raise the profile to land a better job, get a better account or even just massage our own egos. Are we then saying that Brand Republic should start charging those of us who choose to respond? Just being devil's advocate...

Sarah Farrow - 11/02/2009

I'd certainly pay for more that 140 characters. Definitely.

rachel patey - 11/02/2009

Why not give everyone the first 6 months free, then a minimal 6monthly fee. After 6 months everyone is too hooked to leave, and will be very happy to support Twitter's coffers.

George Nimeh - 12/02/2009

It is still early doors for Twitter, and people are still finding their way. That said, it is "mainstreaming" and Stephen Fry's recent appearance on Friday Night with Jonathan Ross could certainly be seen as a tipping point for UK adoption. As a follow-up to a post I wrote \(Does Biz have a bizplan: http://bit.ly/xI4vf) here are my 5C's on using Twitter for business: http://bit.ly/twitter_5Cs @iboy