Interesting academic study on Twitter from Yahoo Research. The bottom line of the study is Twitter is dominated by a small number of users and much more of broadcast medium than a social network.
Key quote from the study:
“We find a striking concentration of attention on Twitter—roughly 50% of tweets consumed are generated by just 20K elite users—where the media produces the most information, but celebrities are the most followed.”
The 20,000 elite users - only .05% of all users - are amplified by roughly 500,000 users retweeting information generated by the elites. The elites tend to fall into 4 categories: celebrities, media, organizations and bloggers.
So what does this mean for small business?
This data reinforces what we said a few weeks ago - Twitter is not going to be an effective method for reaching/interacting with customers for a lot of small businesses. So our advice remains the same:
"learn about and experiment with Twitter, test it for a mix of business purposes, measure your results, and use it if you're getting a strong ROI relative to other uses of your time and money. Don't use it just because of the hype."

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