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OVUM COMMENT: Twitter making more money on mobile

Jan Dawson, Ovum’s Chief Telecoms Analyst | June 8, 2012
Twitter CEO, Dick Costolo has revealed that the site generated more advertising revenue from its mobile platform than from its website on many days in the last quarter.

Twitter CEO, Dick Costolo has revealed that the site generated more advertising revenue from its mobile platform than from its website on many days in the last quarter.

These remarks are an attempt to make clear that Facebook's mobile struggles are unique to Facebook and not endemic to social networks as a whole.

Twitter has a long heritage in mobile (the 140-character limit was driven by the 160-character limit of text messages) and its management clearly wants people to understand that it doesn't see the same challenges in monetizing mobile as Facebook does. It's as if he's saying, "We're not Facebook - don't tar us with the same brush. We're doing just fine in mobile, thank you very much!

This is not to say that Twitter doesn't have challenges of its own in mobile. In contrast to Facebook, which hasn't found a way to monetize the use of its own clients on mobile devices, Twitter's biggest challenge will be finding a way to monetize the use of third-party clients on mobile devices, which were the only option in the early days and are still very popular. Twitter has tried to overcome that problem by acquiring several of the most popular clients, but it still doesn't have a definitive strategy for monetizing mobile either.

 

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