Twitter considers ads to compete with Facebook

Twitter is considering placing promoted tweets into the service's main stream in an attempt to generate additional revenue, according to the Financial Times.

Advertising on the site's almost entirely non-commercial homepage may end up being an unpopular move with users. However, the company is expected to generate just $100 million in revenue this year - a far cry from communications research firm Enders Analysis' projection of the $3.5 billion that Facebook will earn solely from display advertising.

The news source notes that the company has already tested this idea with its third-party mobile client, HootSuite, and has also discussed including time-sensitive deals or offers similar to those of Groupon.

"We are always talking with marketers about ways they could potentially get more out of Twitter," a company spokesperson tells the news source. "Some of these discussed concepts may materialize, others will not."

Search Engine Watch adds that local businesses which advertise on the site may prosper from a promoted tweet move, especially if the company decides to lock the ads in certain spots on the feed.