No firm has done more to enable the monetization of the Internet than Google. Its AdSense system has gone through a lot of changes since it launched in 2003, but it\’s still the backbone of my online business, the channel around which much of my content is built.
The people at Twitter have a pretty good relationship with Google.
Evan Williams, one of Twitter\’s founders and until recently its chief executive, was one of the founders of Pyra Labs, the creator of Blogger. After Google bought Pyra Labs in 2003, Williams even worked for the company for a year, before leaving to set up Odeo and Obvious Corp., where he met Biz Stone and Jack Dorsey, Twitter\’s co-creators.
Dan Costolo, the man who replaced Evan Williams at the helm of Twitter, also has history with Google. In 2004 he created Feedburner, an RSS service. He sold that company to Google three years later at a price rumored to be about $100 million.
So you\’d think that with such a close connection to Google, Twitter\’s business plan would be clear: wait for Sergei and Larry to ask them how much to write on the check.
Not a bit of it. Twitter\’s new CEO has made very clear that he intends to keep Twitter independent. It looks like he means it.
So advertising then. All Costolo has to do is create spots for AdSense units, and Twitter\’s giant traffic would deliver buckets of cash from grateful targeted advertisers.
But Twitter hasn\’t done that either. Instead, the site\’s new look has been designed in part to sell space under Trending Topics and suggested follows.
That\’s much smarter. Instead of relying on Google to deliver revenue — which would have been easy — the company has looked for a unique way of selling advertising space, a method that suits the special way in which Twitter works.
It\’s harder. Twitter\’s people have had to think about how to sell space that\’s viewable but not obtrusive, and targeted without intruding on privacy. They\’ve had to find advertisers and negotiate with them themselves. But the result is not just an independent company but an independent revenue channel and a monetization system that matches the site.
That\’s a lesson for everyone. AdSense is easy and reliable. It\’s a great place to start. But it doesn\’t have to be the only way to monetize an online business. Sell ads directly and in a way that complements your content and you\’ll be able to cut out the middle man and keep your independence.
Right up until Google offers you a check for $100 million.