Founder of Twitter, Evan Williams, CEO is handing over his job in hand, of Dick Costolo, the architect of the Twitter, the reason for their change is that making money is a top priority for the rapid growth of Internet services for micro-blogging.
Williams will focus solely on product strategy, with immediate effect, “which he wrote about the company’s plans in the official blog.
This new change , according to CEO through Twitter and the history of four years, represents Twitter to boost efforts to develop it a free and popular phenomenon of the Internet for use in the business that produces income that can justify the high valuation investors declined.
“Twitter will become the leading platform for online advertising in the future,” Wedbush Securities analyst-Lou Kerner explained his interview.
“Make money follows the eyes, and Twitter can be used to gather a large base of eyes,” says Kerner.
Twitter, which allows more than 165 million users to send text messages to 140 characters, or tweets,to groups of supporters known as followers, is one of the most popular social networking site, along with Facebook and Zynga. Twitter is one of the favorite firms for the investment by the investors hoping one day to buy shares of it.
Some analysts and industry observers believe that Web sites such as social networks are growing challenge for established Internet companies like Google, Yahoo Inc. and Microsoft battle for advertising dollars.
Advertising expense on social networking sites like Facebook and Twitter to grow by about 31 dollars in 2010 is about $3300000000, according to Internet market research firm eMarketer.
Costolo was settled in San Francisco, Twitter, as operations manager in September 2009 following the sale of FeedBurner, the Internet company he co-founded and later on this FeedBurner was taken by Google Inc in 2007.
Twitter first launched efforts for advertising on its service earlier this year, advertisers such as Virgin America, Starbucks and Sony Pictures Entertainment, which promoted the so-called Tweets, marketing and promotional cards presented the search results for specific keywords.
Rate of Internet users click on ads, marketing measure used to track the success of the ad, is “through the roof, Costolo said on Monday. And he said that this month is to finish the year with a list of advertisers,” few hundred “compared to 40 or 50 companies Currently publish this month.
Costolo revealed no private income and comments on Twitter about the company which is profitable.
In September 2009, Twitter received a $ 100 million funded by sponsors, including Insight Venture Partners fund manager T. Rowe Price, the round of financing that the company is worth $ 1 billion.
Costolo told in the interview , in May it is estimated that, for Twitter to “live in a world where we have to produce hundreds of millions of dollars in revenue.”
Trading of shares to private investors sharing this month online in the secondary market for shares in private companies, in July, is with a value of $ 2,800,000,000.