Twitter is unleashing a better targeting system for advertisers. Promoted advertisements and accounts will now show up on your timeline based on the category of your tweets. Similar to other web giants like Google and Facebook, Twitter will start collecting data on users in effort to target advertisements to fitting markets.
Advertisers have two options of how their ads will reach users with Twitter's new advertising system. There is a categorical interest selector where advertisers choose from 350 different areas of interests to ensure their ads reach their target market. On the other hand, advertisers can get even more direct by selecting their ads to reach specific user names. With this option ads will target influential Twitter users and all their followers who share similar interests with them. For example, if you like Givenchy and follow Kanye West you might see Givenchy ads pop up on your timeline.
According to research firm eMarketer, Twitter is estimated to generate $260 million this year. With their new target advertisement system Twitter is expected to make $540 million by 2014.
Do you think Twitter's new policy to collect user data for advertising will affect your usage?