ReadWriteWeb

Three months ago we reported that Ads Had Come to Twitter and it was a pretty big deal - until Twitter promptly said the word "sponsored" was only appearing on the site in error. Now the "sponsored definitions" of certain Twitter "concepts" have appeared on the site again - and they sure look legit this time.

These first ads probably aren't going to bring in enough cash to fuel a micro-app acquisition spree by Twitter, but this is the first clear public indication of one way the company is bringing in revenue. It's funny - the ads have been live for about a week now and no one but a few small, alert blogs has written about them. It was big news three months ago and we believe it's still important.

Peachtree Media Advisors has just released their latest report on digital media mergers and acquisitions. We posted their 2008 report back in January, and this is a mid-year 2009 update to that. According to Peachtree, there were 342 digital media transactions in the first half of 2009, which was 12.3% below the number of transactions in the same period for 2008. More notably, the total value of transactions was much less than a year ago. In the first six months of 2009, there were $4.2 billion in digital media transactions - a whopping 61% decrease from the same period in 2008. And that $4.2B figure includes $2.5B from the Live Nation - Ticketmaster merger this year.

You know that scene in Alice in Wonderland where Alice is tumbling down the rabbit hole past all those miscellaneous chairs and birds? That same feeling of confused dread is often how users feel when they're attempting to navigate a site that has never been tested. We know that developers pour their souls into their projects. But that's also why it's sometimes difficult (and even personal) to point out the flaws. A developer has to ask, "Do I want it built my way without compromise or do I want users?" If you want to run a business, rather than spending months speculating on what you think users might want, it's sometimes best to simply ask them.

Launchly is a web application review site where developers can upload screen shots and links and ask for user advice and feedback. Released this past week, Launchly appears to be a beefier version of Feedback Army with the additional abilities to track changes and request multiple rounds of recommendations.

If you were a little blue bird, with a good pile of money and a whole lot of hype, what would you buy to spice up your nest? There are so many little services being built on top of Twitter that we wouldn't be surprised to see some more of them acquired by the company soon. That would mean more features for everyday users and more usefulness for features loved by loyal early adopters.

Twitter has acquired two other companies so far, that we know of. Search engine and sentiment analysis service Summize became Twitter's own search engine and Values of N sold its assets so engineer Rael Dornfest could be brought into the company. Here are ten other startups we think that Twitter should consider acquiring next. Which kind of company would you most like to see become part of Twitter itself? We've got a poll below.

We're sure by now you've heard about the upcoming extensions that will soon arrive in Google's Chrome browser. Already we've seen a handful of these become available including AdSweep, a PageRank checker, Cleeki, and, as of yesterday, a new bookmarking extension from Delicious. However, if you've been running the standard Chrome install (or even the public beta), new features like this are just out-of-reach.

Has Twitter spam gotten a little out of hand? According to today's top story on Techmeme, it has. Apparently, marketers are calling for Twitter to filter out spam and other adult content from the microblogging service. You know, so their all-important tweets about the products and services they're pushing don't have to share the same web space as that other nasty stuff. But fighting actual spammers is still relatively easy for an end-user: it's called the "unfollow" button.

Ironically, if anyone's to blame for spamming our Twitter timelines, it's the marketers themselves. They've managed to trick our friends into spamming us with their messages instead.

This is one post/chapter in a serialized book called Startup 101. For the introduction and table of contents, please click here.

First-time entrepreneurs are usually also first-time CEOs. When you look at your first business card that says CEO, don't forget that it is not necessarily telling the truth. You earn the title of CEO through your actions and your results. You still have your training wheels on.

Fortunately, there is probably more advice available on how to be an effective CEO than on almost any other subject. This chapter gives you a quick guide, but do invest the time to read the classics, particularly:

Under waves of ever-increasing competition from Mozilla, Safari, and Google, Microsoft has released a series of edgy, PSA-style online videos to promote Internet Explorer 8.

Featuring one-time Lois and Clark actor Dean Cain, the ads are uncharacteristically hip and discuss such real-world Internet problems as the fear of missing something (a.k.a. insomnia by social media) and the fear of your S.O. finding your porn cache. However, at least one of the videos was just too cool for Microsoft. After becoming strangely popular and talked-about online, the video was renounced by the software mega-company and pulled from the promotional website. Somewhere tonight, a creative director weeps.

According to a report today from the BBC, Iranians are able to text message one another for the first time since the day before the presidential elections.

SMS service, which political dissidents had used to spread messages and organize protests, has been restricted since June 11, causing many Iranians to use Twitter, Facebook, YouTube, and other social sites to broadcast and communicate.

FriendFeed, the multi-network activity aggregator co-founded by Gmail creator Paul Buchheit, announced today that it has entered the crowded field of real time search. FriendFeed was already the best way to learn what early adopter social media users were saying about any topic across blogs, Twitter, delicious and other diverse social media sites. If FriendFeed wants to step it up to the next level and challenge business-class conversation trackers, we believe there are four steps the company needs to take.

We think that would make a whole lot of sense. In fact we think that if real time search were turned into a business tool it could challenge social media monitoring services like Radian6, Scout Labs and Sysomos. Here's what we think needs to happen in order for that to become a possibility.