Twitter - Acquired  ## Metadata - Author: **Acquired** - Full Title: Twitter - Category: #podcasts - URL: https://share.snipd.com/episode/399f9f58-dafa-4950-9ce5-48dba6f65115 ## Highlights - How Twitter Invented the Native Ad Key takeaways: • Twitter pioneered the use of feedbased ads, which are now used in many products. • Twitter's innovation was based on necessity. • There was no other way to place ads in the feed. Transcript: Speaker 1 So we realized right away, all right, we need an advertising form out that goes everywhere the tweets go. From there, you quickly realize, well, the one thing that can go anywhere tweat can go is another tweet. So we'll make the ads tweats, and we'll just inject them into the feed, whether it's a syndication feed or a third party feed or our own sight. And that was really the birth of the native probably, much to this dismay of much your listeners, it was the birth of the feed based ad that ended up being what's used in all these products To day, face book and pintrestand. Oh, i don't realize that twitter pioneered that before face book. Ye, face books ads were like edsens ads. They were off to the side on face book dot com. They wern't in the feed, instagram, et cetera. Necessity is the mother of invention. The reason we invented that is because we had to. There was no de militarized zone of tweets the side bar where to put stuff. There was just the feed. The beauty of that innovation was, while gosh, will be able to measure engagement with the ad in the same ways you measure engagement with a tweet. And so we had on this visiting professor at stanford, a shish goel. And ashish really came up with the idea of using the tweet ad engagement as that'll be the way we charge. Instead of cost per impression or cost per click, we'll charge based on cost per engagement. ([Time 0:17:17](https://share.snipd.com/snip/7f7b52ea-3ee5-4c40-b3c7-c7445bee37a3)) - How Twitter Pioneered Cost Per Engagement Advertising Key takeaways: • Twitter pioneered the idea of charging for ads based on engagement,. • Management decisions about whether to pioneer new ideas often come down to whether the idea is feasible and likely to be successful. Transcript: Speaker 1 Oh, i don't realize that twitter pioneered that before face book. Ye, face books ads were like edsens ads. They were off to the side on face book dot com. They wern't in the feed, instagram, et cetera. Necessity is the mother of invention. The reason we invented that is because we had to. There was no de militarized zone of tweets the side bar where to put stuff. There was just the feed. The beauty of that innovation was, while gosh, will be able to measure engagement with the ad in the same ways you measure engagement with a tweet. And so we had on this visiting professor at stanford, a shish goel. And ashish really came up with the idea of using the tweet ad engagement as that'll be the way we charge. Instead of cost per impression or cost per click, we'll charge based on cost per engagement. They click and open the twet, or they like it, or they retweed it, or they reply to it. Those are great indicators of engagement. And he was the sort of the father of thinking about the way we built the ad model and the monetization engine behind it and charged for it. That was all him. He was the thinker on that. Speaker 2 And how do you make that management decision that we're pioneering something new? Here we have this visiting professor whos genius. ([Time 0:17:53](https://share.snipd.com/snip/576bf63d-b009-455a-8d40-fbc251882094))