Now Twitter is serious about making money

BANGALORE, INDIA: Though Twitter is a sensation in the microblogging landscape, the company is yet to capitalize its name and fame and translate it into money. However, the latest announcement about the senior executive reshuffle at the company is seen as a major move on the part of Twitter to make money.

On Monday, Twitter had announced that its co-founder Evan Williams will hand over the job of chief executive to Dick Costolo, the architect of Twitter's nascent advertising efforts. Williams will focus completely on product strategy.

“When a CEO steps down it is typically because a company has taken a nosedive in performance and has lost its strategic direction, but for Twitter and outgoing CEO Evan Williams this is not the case,” observes Ovum principal analyst Eden Zoller.

“The decision to hand over the CEO reins to current COO Dick Costolo is a sign of just how determined Twitter is to push through its transformation from start-up to ‘grown up’ business, underpinned by a sustainable business model.”

Though Twitter has around 165 million users the big numbers alone are not enough when it comes to generate revenue. Twitter recently made its first foray into an advertising proposition controlled by the company in the form of Promoted Tweets.

“It is critical that the company makes its advertising proposition stand up and flourish, which is where Google veteran Costolo fits in. Evans is not disappearing but will instead focus on what he and the team thinks he is best placed to address: product development,” adds Zoller.

“Providing the transition goes smoothly this will be a positive re-organisation where Twitter’s senior management are pro-actively directing their skills to where they best serve the company and by doing so are putting the monetisation ambitions of Twitter, rather than their own egos, first and foremost.”