Twitter may say that a new, redesigned home page reflects an attempt to provide more immediate visibility into what's happening on Twitter... but it's really a revenue play.
The new home page does a great job of providing the information hooks that would get a prospective user to click to learn more and ultimately open an account. Its clear objective is to increase the user base, a challenge that Twitter faced in the second half of 2009, after experiencing explosive growth in the two preceding quarters.
More users means more traffic. More traffic means more revenue.
Increased activity from its user base feeds the "fire hose" that is growing into an important revenue stream for Twitter. In addition to the multiyear real-time search deals that Twitter inked with Microsoft (MSFT) and Google (GOOG) last October, rumors swirled around SXSW that the site's latest round of "fire hose" clients are paying at least $100,000 a month for full access to Twitter's data. More users -- and more data -- increase the intelligence that can be gleaned from the hose, making the licensing deals more beneficial to the companies buying access, which in turn bolsters Twitter's revenue stream.
Here are four features from the new page that could have a revenue impact:
1. Top Tweets
This occupies a considerable amount of real estate in a prime middle-of-the-page spot. You don't put anything there if you don't expect it to make money.
What this dynamic feature accomplishes is a look at the flow of information through Twitter so prospective users can get a feel for the service. And, the rotation of tweets increases the odds that you'll see something that will make you click deeper, putting people on the road to registration.
2. See Who's Here
It's not totally random, it seems. There are always hefty publications and recognizable names (such as @PadmaLakshmi and @USATODAYhealth) intended to catch your attention and make you realize that there are important users on Twitter -- the sort of users you should be following.
It's conversion bait.
3. Trending Topics
If big names aren't enough to get you to join, there's the chance that the topics burning up the Twitter stream will be meaningful to you -- again enticing you to make that click to join. Every topic that ticks by gives a visitor a reason to commit to a relationship with Twitter, which translates to revenue potential for the company.
4. Business Tips
Right below the big button that effectively screams "Get Started Now" is the comparatively subtle tip: "Using Twitter for a business? Check out Twitter 101." The rapid adoption of Twitter (and social media in general) for marketing has given Twitter a tool for attracting more users. So, if a business user is on the fence about whether to join, the site has built in one more way to convince you.
According to a post on the Twitter blog, "All of our recent changes embrace the notion that Twitter is not just for status updates anymore." Yeah, it is arguably about being "a network where information is exchanged and consumed at a rapid clip every second of the day."
But it's also really about generating revenue.
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