1. Explain how Twitter makes money through advertising. Find examples of companies using Twitter as a promotional tool.
2. How does social media advertising spending compare to traditional mass-media advertising spending? How likely is it that Twitter can become a media entity rather than just a media platform, and what are the implications for advertisers?
Visit any media outlet's Internet site and you'll see the familiar Facebook and Twitter icons. Traditional news media have migrated to online versions and beyond through social media. But social media have become a major source of news for many people. Sixty percent of respondents in one study indicated Facebook as a source of news, and 20 percent used Twitter to learn what's happening in the world. Twitter might have a growing advantage because of the nature of short tweets and how quickly they spread. Most news outlets have a presence on Twitter, promoting their content and directing audiences to their online sites. But Twitter has found a way to make money through advertising and is hiring editorial personnel to produce and manage content. It appears that Twitter is moving away from being just a media platform to becoming a media entity, which concerns traditional media outlets. Twitter has been a partner with traditional media, but now it appears to be moving in the direction of being a competitor. Twitter's NASCAR and Olympics Hub editorial offerings were just the beginning. Part of Twitter's success is due to the relationships it has fostered with these outlets, but now Twitter is building a digital-media business on content provided by its media partners as well as eye-witness input from people located where the news is happening.