Twitter Ad Space - Recycled

I recently came across this article in Businessweek that discusses the "promoted tweets" Twitter began selling in April.

Now I should probably first admit that I don't have a Twitter account.  Given that I'm a Marketing student and interested in Internet Marketing, I should have broken down by now and gotten one.  However there is just something that is holding me back...maybe it's that I don't care to read about what kind of sandwich Ashton Kutcher ate for lunch.  I know, I know, there are many more productive uses for Twitter and it can offer Marketers critically important information.  I'll sign up soon...

Back to the article.  Many big names, such as Starbucks and Red Bull, are using Twitter to post ads that appear to users when they search for certain key words on the Twitter.  When someone searches for Starbucks, a paid tweet will be thrown in amongst tweets form other users.  Now there are an abundance of websites, such as TweetDeck, that stream in messages from a variety of social networks to the user's browser.  With those streaming messages comes more space for these other websites to sell ad space.  Twitter recently mandated that these websites could no longer sell ad space within tweets, but they could still use ad space surrounding the tweets.  Since websites like TweetDeck are just starting out, it appears that they can't really argue with the declaration make by Twitter.  I can guess who would win.  As a result, these sites will have to rely less on feeds from Twitter in order to survive.  Who knows what Twitter will mandate next.  So what are your thoughts on this issue?  Do you think that ads sandwiched between tweets are more effective that ads above or below tweets?  

One reason Twitter gave for making this rule is that the "paid tweets on other sites could hinder efforts at innovating or creating the best user experience".  (Dick Costolo, Twitter Operating Chief).  I think it has less to do with creating the "best user experience" and more to do with prime ad space.  After all, advertising dollars are crucial to the success of Twitter.  It seems as though Twitter is using its power to stake it's claim, and rightfully so.  With more and more sites coming out that consolidate messages from social networks, it's becoming a battle to get ad dollars.  This concern over third party ads will continue to be a hot topic in the coming months.  I'm expecting more regulations will emerge in just a matter of time.