Social networking giants Twitter are embarking on a new push to grow as a business and a company, with its investors ploughing $200m into the online messaging service.
The new funding by the company suggests that they are confident the site will find a way to make money from tweets. The company are yet to make are yet to announce a profit, but with a rate of 95 million tweets on the site a day, this new investment could produce a lucrative end result.
Twitter is now valued at $3.7bn, where just a year ago the site was valued at $1bn. Even though the site is making considerable revenues it is not yet profitable. The increased valuation of the site highlights the investment confidence made by the company.
The site has introduced their new system of “Promoted Tweets” which allows advertising without radically altering the user experience. Founder of the website Evan Williams said 2010 would be dedicated to developing a profitable strategy for the company.
Twitter said that its sponsored tweets have seen a higher level of success than on many equivalent sites, with up to 8 per cent engage consumers in some form.
In the past 12 months Twitter has almost tripled its payroll to 350, and recorded 100 million new user accounts. A post on the Twitter blog stated, that the company is now seeing a “tremendous growth in the creative ways businesses and organisations are leveraging Twitter”.
The site announced the creation of a revamped Twitter business site, outlining the different advertising options available to firms.
To coincide with their cash injection, Twitter revealed that IPod app creator Mike McCue and digital advertising guru David Rosenblatt would be joining their team ahead of a potentially crucial year for the company.