Twitter recently informed users that they are now collecting
information about the apps installed on users’ devices in order to better target
and tailor advertising. In addition to helping with ad targeting, Twitter also
said the information it is collecting can be used to improve “who to follow”
suggestions. Perhaps not surprisingly, the tracking is switched on by default, though
users can choose to opt out of having the information collected.
This move by Twitter should not surprise anyone, as the
company has to continue to find new ways to generate the type of revenue and
profits that justify its valuation. The question now is how will Twitter manage
the balancing act of generating significant advertising revenue without
degrading the user experience? I believe most social media users understand that
companies like Facebook and Twitter need to use advertising in order to
generate revenue and remain viable companies. However, that understanding has
limits, and if users come to believe that their favorite social media sites
have become merely a message board for advertisers, they will be quick to ditch
those sites in favor of new ones.
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