Twitter bans third-party advertising alternatives

Microblogging service Twitter announced it will no longer accept third-party advertisements outside of its own Promoted Tweets program, with a blog post from chief operating officer Dick Costello chalking up the decision to "the long-term health and value of the network." According to Costello, Twitter will no longer allow third parties to introduce sponsored tweets into a timeline of any service leveraging the Twitter API--he adds the firm is currently updating its Terms of Service to better articulate the new policy, and encourages developers to read the updated API Terms of Service, scheduled for imminent release. "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," Costello writes. "The basis for building a lasting advertising network that benefits users should be innovation, not near-term monetization."

Twitter introduced Promoted Tweets in mid-April. The initiative features ads that show up when users search for keywords tied to advertiser campaigns--from there, Twitter will eventually insert user-relevant promotional posts into the Twitter stream based on metrics like geographic location or shared interests among followers. Brands including Starbucks, Best Buy, Virgin America and Bravo have already signed on. "A necessary focus of Promoted Tweets is to explore ways to create value for our users," Costello explains. "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."

Twitter's decision threatens to further jeopardize its increasingly tenuous relationship with the developer community. In April the startup acquired Atebits, developer of the popular iPhone client Tweetie--the deal heralded a new era for Twitter, which historically focused on its website and related services while leaving work on mobile software applications to third-party developers. Even prior to the Atebits acquisition, Twitter developers were expressing growing concern that the firm will build more apps in-house or purchase services that bolster its overall vision.

Twitter CEO Evan Williams told The New York Times the startup will continue to develop apps and features it needs, even if third-party developers already provide them, adding that Twitter bought search solutions provider Summize in 2008 because it realized it needed a search engine. "There could be other stuff like that, that completes the platform and makes it better," he said. "Since we're still evolving, that may happen more."

For more on Twitter's new ad policy:
- read this Twitter Blog entry

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