Twitter founder Dorsey defends business model
Twitter's co-founder and chief, Jack Dorsey, has defended the site's business model at a technology conference in Munich.social media Updated: Jan 24, 2012 15:56 IST
Twitter's co-founder and chief, Jack Dorsey, has defended the site's business model at a technology conference in Munich.
Speaking at DLD, an annual digital focused conference held in Germany a few days before the World Economic Forum meeting in Davos, Switzerland, Dorsey said: "Twitter's business model has been in development for quite some time, and it works."
The Telegraph further quoted him, as saying: "Advertisers use it and we see them coming back for more. The market has vetted and confirmed that they want to keep using it."
"Twitter's 'Promoted' products - including promoted tweets, accounts and trends - are currently seeing three to five per cent engagement," he added.
Twitter famously only started rolling out adverts on the site in 2010, after four years of no attempt to make money from the site, apart from a couple of search aggregation deals.
The site has yet to develop huge profit from its advertising products nor feature lots of localised adverts, opting to work with major brands, such as Starbucks, on their global campaigns.
Dorsey said the company was focusing on scaling its reach in Germany, as it has yet to be very popular there and is currently building a team in the European country.