Monday, May 24, 2010

Twitter Bans All Third Party Ad Platforms - They Really Do

Yes, Twitter has just announced that they will ban all Third Party Twitter Platforms, This means the end of Ad.ly and the just launched Tweetup. They Says:
We will not allow any third party to inject paid tweets into a timeline on any service that leverages the Twitter API.
You have to keep updated with us with news about this topic, the significant part of Twitter’s post is below:
As our primary concern is the long-term health and value of the network, we have and will continue to forgo near-term revenue opportunities in the service of carefully metering the impact of Promoted Tweets on the user experience. It is critical that the core experience of real-time introductions and information is protected for the user and with an eye toward long-term success for all advertisers, users and the Twitter ecosystem. For this reason, aside from Promoted Tweets, we will not allow any third party to inject paid tweets into a timeline on any service that leverages the Twitter API. We are updating our Terms of Service to articulate clearly what we mean by this statement, and we encourage you to read the updated API Terms of Service to be released shortly.
Why are we prohibiting these kinds of ads? First, third party ad networks are not necessarily looking to preserve the unique user experience Twitter has created. They may optimize for either market share or short-term revenue at the expense of the long-term health of the Twitter platform. For example, a third party ad network may seek to maximize ad impressions and click through rates even if it leads to a net decrease in Twitter use due to user dissatisfaction.
Secondly, the basis for building a lasting advertising network that benefits users should be innovation, not near-term monetization. Twitter is uniquely dependent on and responsible for the long-term health and value of the platform. Accordingly, a necessary focus of Promoted Tweets is to explore ways to create value for our users. Third party ad networks may be optimized for near-term monetization at the expense of innovating or creating the best user experience. We believe it is our responsibility to encourage creative product development and to curb practices that compromise innovation.

Update 1: The company notes three guiding principles:
  • We don’t seek to control what users tweet. And users own their own tweets.
  • We believe there are opportunities to sell ads, build vertical applications, provide breakthrough analytics, and more. Companies are selling real-time display ads or other kinds of mobile ads around the timelines on many Twitter clients, and we derive no explicit value from those ads. That’s fine. We imagine there will be all sorts of other third-party monetization engines that crop up in the vicinity of the timeline.
  • We don’t believe we always need to participate in the myriad ways in which other companies monetize the network.

Update 2: Here is the relevant part in the updated T&C:
IV. COMMERCIAL USE

It is our goal to provide you, our ecosystem partner, with a policy that is clear and transparent about what you can do to monetize your Service. This is best summed up in two principles:

respect user content — Tweets may be used in advertisements, not as advertisements.
respect user experience — build your service around the timeline, not in the timeline.

And now, for the details:

1. Twitter Ads.

Twitter reserves the right to serve advertising via its APIs (“Twitter Ads”). If you decide to serve Twitter Ads once we start delivering them, we will share a portion of advertising revenue with you per our then-current terms and conditions.

2. Advertising Around Twitter Content

(a) We encourage you to create advertising opportunities around Twitter content that are compliant with these Rules. In cases where Twitter content is the basis (in whole or in part) of the advertising sale, we require you to compensate us (recoupable against any fees payable to Twitter for data licensing). For example, you may sell sponsorships or branding around gadgets or iframes that include Tweets and other customized visualizations of Twitter. Please contact us for questions and information at twitter_ads@twitter.com, or to notify us of an advertising opportunity.

(b) You may generally advertise around and on applications or sites that display Tweets, but you may not place any advertisements within the Twitter timeline on your Service other than Twitter Ads.

(c) Your advertisements cannot resemble or reasonably be confused by users as a Tweet.

(d) You may advertise in close proximity to the Twitter timeline (e.g., banner ads above or below timeline), but there must be a clear separation between Twitter content and your advertisements.

3. Using Twitter Content. You must get permission from the user that created the Tweet if You:

o want to use their Tweet on a commercial durable good or product (for example, using a Tweet on a t-shirt or a poster or making a book based on someone’s Tweets); or

o create an advertisement that implies the sponsorship or endorsement on behalf of the user.

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