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December 16, 2008 2:17 PM PST

Twitter promotions can add up to millions

by Caroline McCarthy
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Well, this is an interesting tidbit: Computer giant Dell told Internet News that its "Twitter sale alerts" have added up to about $1 million in revenue.

As we all know from Mike Myers' "Dr. Evil" character in the Austin Powers movie franchise, a million bucks isn't a whole lot of money for a major multinational corporation. But it does have something to say about how Twitter is transforming from gimmicky messaging tool to marketing powerhouse. Fire-sale start-up Woot showed that it's possible to take advantage of Twitter's rapid-fire nature to advertise fleeting deals; shoe retailer Zappos has gotten praise for using Twitter for customer service.

Low-cost airline JetBlue, as the Internet News article points out, also uses Twitter for both fare deals and customer service.

More compelling is what this can mean for Twitter's own not-yet-existent business model, which looks like it might involve premium accounts for businesses using the service. With companies touting retail success, this could widen the window of opportunity for Twitter to start encouraging them to, well, pay up.

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About The Social

CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

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