api

Can Jack Dorsey Save Twitter?

After being “exiled”, Jack Dorsey has officially returned to Twitter to head up product development – a move being widely hailed. The question is whether Dorsey can save Twitter, which appears to have lost its way despite having close to 200 million users.

Dorsey, who co-founded Twitter, returns to a company still searching for a viable business model. At the same time, Twitter doesn’t seem to be sure whether the army of developers using its API are friends or foes.

Recent changes in how developers should use the API struck many as a move of desperation because it seemed counter-intuitive given how the work done by third-parties have played such a key role in making Twitter more useful and interesting in contrast to the ho-hum, no-frills approach embraced by Twitter itself.

Maybe Dorsey’s return will help Twitter find its mojo. Perhaps it will bring Twitter back to a time when innovation was a key ingredient of Twitter’s corporate DNA as opposed to user growth and the search for a business model.

If Dorsey had a check-list, it should probably include the following:

1. Make nice again with developers. Then, create an API policy that is win-win as opposed to restrictive and controlling.

2. Reignite innovation within Twitter. To be blunt, Twitter is boring when it comes to features. This explains why enthusiastic and hard-core Twitter users migrate away from Twitter.com. It has been disappointing to see Twitter watch from the sidelines while developers do all kinds of creative things with the API.

3. Focus on strategic acquisitions to enhance the Twitter platform. While TweetDeck has already been snapped up by Bill Gross’ UberMedia, there are many interesting start-ups (e.g. TwitPic, HootSuite) that would be good strategic fits. Maybe even provide seed capital to startups that show a lot of potential.

4. Create an advertising model that will generate revenue but, at the same time, enhance and not tarnish the user experience. Once this has been established, Twitter should aggressively launched it. It would be a different approach than Promoted Tweets, which has been cautiously unveiled – a move that suggests Twitter is uncertain about its viability.

For more on Dorsey’s return, check out GigaOm.

Has Twitter Lost its Way?

On Friday just before many people escaped for March Break, Twitter unveiled new rules for API that, in many ways, could slam the door on the vibrant developer ecosystem that has been allowed to emerge in the past couple of years.

Since then, Twitter’s Ryan Sarver has been dancing around explaining that nothing has really changed except that to have a “consistent user experience”, Twitter will:

“….provide the primary mainstream consumer client experience on phones, computers, and other devices by which millions of people access Twitter content (tweets, trends, profiles, etc.), and send tweets. If there are too many ways to use Twitter that are inconsistent with one another, we risk diffusing the user
experience.”

In simple terms, Twitter wants to be the way people use the service, and services such as TweetDeck (now owned by nemesis Bill Gross) are considered to be the competition unless they have received official approval from Twitter. It’s the classic, it’s my ball and we’ll play the way I want.

On one hand, it’s about time Twitter took control of its API given it is the company’s most valuable asset, and one it hasn’t really leveraged to generate much-needed revenue.

On the other hand, Twitter is putting the hammer down on an ecosystem that has played a major role in driving Twitter’s popularity. With more than 750,000 applications – a staggering number – Twitter can be used to do pretty much anything.

The problem, however, is Twitter hosted a party that got completely out of hand. Now, it wants to turn the lights back on, turn off the stereo and close the liquor cabinet. It’s an abrupt change of events that either suggests a dramatic shift in strategic direction, or a company scrambling to figure out how it rather than its API users can be financially successful.

In many respects, Twitter is a wildly successful project that got away on its founders and, for that matter, its investors. Its popularity and emergence as a key communications medium was something that could have never been anticipated. In hindsight, Twitter should have made better strategic decisions but it was focused on growth while other issues such as a business plan appeared to be secondary considerations.

The recent departure of Evan Williams was a major indication of Twitter’s new direction. The new API rules are another sign that CEO Dick Costolo and Twitter’s investors are intent on carving out a new strategic direction.

The question is whether Twitter is a digital Titanic that is simply too big to move in a radically new direction. While not surprising, the new API rules are abrupt and could have a major impact on how Twitter’s developer ecosystem evolves and support the “mothership”.

If Twitter wants developers to play a periphery role while it will be the way people use Twitter, the new API rules could badly backfire by killing the innovative culture that has made Twitter such an interesting landscape.

By trying to be the game in town, Twitter may be cutting off its nose to spite its face.

Links: Check out The Next Web for more thoughts on Twitter’s new API policy.

The End of the Good Times at Twitter

In many ways, Twitter has been a lot like the teenager with good intentions who throws a house party while his/her parents go away for the weekend. At first, everything is in control with the guests behaving well, the liquor cabinet untouched, and the music loud but not too loud.

Then, word spreads about the “great party” and pretty soon things get out of hand. The music gets cranks up to “11″, someone discovers the liquor cabinet and there’s people making out on the couch. Sooner or later, the cops show up.

For Twitter, the party was the “API” that Twitter let developer used to create thousands of third-party applications. It didn’t take too long before most of the really interesting stuff was happening within the developer community while Twitter was a conservative, no-frills host who many people paid little attention to. It explains why fewer than 30% of the people on Twitter use Twitter.com – preferring to use apps such as TweetDeck, Seesmic and HootSuite.

Suddenly, however, the API game has changed. In a quasi-surprising turn of events, Twitter has decided the API party is over. Guests will only be allowed to stay if they behave properly and according to rules set by Twitter. It’s like taking Led Zeppelin off the stereo at the party, and deciding instead to play “Twister” – the party is still technically on but it’s not as much fun.

In a message to developers, Twitter’s Ryan Sarver

If you are an existing developer of client apps, you can continue to serve your user base, but we will be holding you to high standards to ensure you do not violate users’ privacy, that you provide consistency in the user experience, and that you rigorously adhere to all areas of our Terms of Service. We have spoken with the major client applications in the Twitter ecosystem about these needs on an ongoing basis, and will continue to ensure a high bar is maintained.

As we point out above, we need to move to a less fragmented world, where every user can experience Twitter in a consistent way. This is already happening organically – the number and market share of consumer client apps
that are not owned or operated by Twitter has been shrinking. According to our data, 90% of active Twitter users use official Twitter apps on a monthly basis.

Translation: We set the rules, you follow them. If you stray from the rules, we’ll hammer down.

It also means the Twitter ecosystem will be less fun, vibrant and active. Now that Twitter has decided to rule the roost, you have to believe developers will wonder whether their application meets the official guidelines.

In many respects, Twitter’s taking control of the API is not a surprise. Given how the company is still struggling to find a viable business model, the API is Twitter’s core revenue stream – one it should have managed, leveraged and monetized in a much better way.

Instead, Twitter hosted a party that got wildly out of hand, and everyone was having a much better time than Twitter. Now, Twitter has decided that for better or worse the party is over.

For more, check out Mathew Ingram’s post on why Twitter shouldn’t bulldoze the developer ecosystem.

Update: On ReadWrite Hack, Sarver provides more, um, insight into Twitter’s thinking. The more he talks, the more confusing it gets as to Twitter’s motivations and plans.

Twitter’s Battle for Control of its API

Update: Twitter has restored UberTwitter’s API access after a strange weekend. Twitter said UberTwitter’s owner, UberMedia, had agreed to remedy” some violations. Makes you think maybe the two sides should have talked before Twitter slammed shut the API door.

There are lots of puzzling things about Twitter. For example, why it has taken it so long for it to embrace a business model, and why it rebuffed the idea of contextual advertising even though it is the way that online services make money.

One of the other strange aspects about Twitter was its laissez-faire approach towards its API. Like many companies, Twitter created an API that other companies were allowed to use to build services that supported the main platform. This policy has created a wonderfully diverse and rich ecosystem with thousands of services. This has helped Twitter become a global phenomena that providers with a buffet of options and features.

The problem for Twitter is it has become of a victim of its own success. The ability of developers to embrace the API to build not only features but businesses has massively overshadowed Twitter’s own efforts. While Twitter was busy raising venture capital and pouring millions of dollars into its infrastructure, the army of developers has been aggressively working away to do things that, in hindsight, Twitter should have been doing themselves.

The other problem for Twitter is it failed to manage the API. It allowed the horse to escape the barn. While, it charged some companies to access the API, there didn’t appear to be a program in place that would balance the need to let developers use the API with Twitter’s need to control it and, as important, make money.

What this is means it you’ve got companies such as TweetDeck, HootSuite and UberMedia that have built services with millions of users, and they are now starting to hammer down on generating revenue.

All of a sudden, Twitter has recognized that while it has to stay home on a Saturday night and clean up, everyone else is out having a good time. Judging by a flurry of “policy violations” that have caused some Twitter-related services to be shut down, Twitter now seems to be saying that enough is enough.

The big question is whether it’s too late for Twitter to take control of the API. Has it waited too long to take action, or can Twitter’s new, tough stand take hold? The tricky part for Twitter is balancing the need to keep the health of its API ecosystem while driving revenue from developers who are building viable businesses.

This may mean Twitter has get tough to take control. The suspension of services such as UberTwitter for “policy violations” could be a necessary evil if Twitter wants to make it clear the rules of engagement for its API are being reestablished. This could cause a lot of pain and bad publicity but, in many respects, Twitter has no choice.

It has come to the point where Twitter has to do something bold and necessary, or do nothing at all. It either needs to take control of the API and create a revenue stream, or stopping fooling around with “policy violations”.

Personally, the only logical option is leveraging the API has the business model, along with contextual advertising. The API is the gasoline that’s fuelling an amazing ecosystem. Twitter needs to support and monetize it so it creates a win-win scenario for everyone.

For more on Twitter’s API struggles, check out this interesting Q&A on Quora about why Twitter suspended UberTwitter. It features an answer from UberMedia CEO Bill Gross.

Facebook: Damned if You Do, Damned if You Don’t

Joshua Errett had a good column in Now Magazine about Facebook’s latest strategic salvos for Web domination. A comment that resonated was the reality that even if you oppose Facebook’s everything-is-public approach, it is difficult, if not impossible, to avoid playing along.

With more than 400 million users, Facebook is an online “Goliath”, and even though Goliath may not be behaving particularly well, he’s still the biggest guy around so you better play nice.

It’s one of the reasons why thousands of Web sites have already embraced Facebook’s new Graph API, which means that if you’re logged in to Facebook and then visit a third-party Web site using the Graph API, your experience will be magically personalized. By “magically”, the Web site will already know a lot about you by tapping into what’s available publicly on your Facebook profile.

If this is a trade-off that you’re willing to accept as the cost of personalization, that’s fine. But if you’re concerned about your privacy and where your information is available, I’d recommend spending 15 minutes tweaking your Facebook privacy settings. (Note: Here’s a good overview from the Electronic Frontier Foundation on Facebook’s evolving privacy policies over the years.)

Despite some major concerns about the new Facebook, many Web sites will politely fall into line because they have no other choice. If they decide not to use the Graph API and not offer a “Like” feature on their sites, it means not offering a feature that many of users want or think they want. It’s like opening a coffee shop and deciding not to offer sugar because it causes cavities.

As Errett points out, Web sites and Facebook users will accept’s Facebook’s new approach unless there’s another social networking option that’s more user-friendly and more concerned about privacy.

In the meantime, it’s business as usual. It doesn’t mean you have to like it but just be aware of the game’s new rules.

For some of my other thoughts about Facebook (and there’s plenty), here are some recent posts:

- Has Facebook Just Repackaged Beacon? Does Anyone Care?

- A Must-Do: Check Your Facebook Privacy Settings

- A Fork in the Road for Online Privacy

Has Facebook Just Repackaged Beacon? Does Anyone Care?

Apologies for beating a dead horse but it has been more than a week since Facebook launched several major changes in which it operates, highlighted by a huge move in making more data public, and how third-party Web sites are able to personalize content based on information they call pull from Facebook.

To be honest, the reaction has been far less muted than I expected. Even though Facebook introduced significant changes in how the data of its 400 million users can be leveraged by Facebook and Web sites taking advantage of the new API, one of the only groups with major concerns is Canada’s Office of the Privacy Commissioner.

It’s shocking because if you’re a Facebook user that visits another Web site, they’ll already have information about you. Sure, it means a more personalized experience but there’s a price to be paid, which is that your data is being increasingly shared. To be clear, more of your Facebook information is going to be made public.

To me, the benefits of this new data arrangement are skewed in a major way in Facebook’s favour, while wrapped in a nice, tidy package of convenience and personalized for users. For Facebook, the ability to have stronger links with Web sites means more ways to generate revenue.

This is a crucial consideration for a company whose growth and the financial resources to support this growth has out-paced its ability to generate revenue. Despite its success, Facebook finds itself scrambling to generate more money because, let’s face it, its advertising on Facebook is a high-volume, low-margin business.

When you put Facebook’s new data strategy in context, it’s hard to believe that so many people have simply accepted it while Beacon received such a negative reaction that Facebook was forced to retreat. In many ways, Facebook’s new approach is just a re-invention of Beacon packaged as “personalization”.

More check out these articles and blog posts:

- Facebook Applications Raise Privacy Concerns (Toronto Star)
- Marc Meyer’s “We care about our privacy. We just didn’t realize how much social networks didn’t.”
- A Must-Do: Check Your Facebook Privacy Settings (Mark Evans Tech)

Related Posts Plugin for WordPress, Blogger...