Social Networking sites has made it easy for every developer and hacker to build a application on top of their platforms with the use of APIs, but is this a sound business model?

A while ago Twitter caused concern for many Twitter client developers when they announced their own Black Berry client, and buying up popular iPhone Twitter client Tweetie, putting these companies in doubt whether they were to release official clients for other platforms too.

Twitter has now made another bold move by banning all third party advertising platforms making use of their API, this includes new startup, TweetUP, that just launched today at the Tech Crunch Disrupt conference.

Twitter clearly had the following to say in a blog post on their official blog.

As our primary concern is the long-term health and value of the network, we have and will continue to forgo near-term revenue opportunities in the service of carefully metering the impact of Promoted Tweets on the user experience. It is critical that the core experience of real-time introductions and information is protected for the user and with an eye toward long-term success for all advertisers, users and the Twitter ecosystem. For this reason, aside from Promoted Tweets, we will not allow any third party to inject paid tweets into a timeline on any service that leverages the Twitter API. We are updating our Terms of Service to articulate clearly what we mean by this statement, and we encourage you to read the updated API Terms of Service to be released shortly.

This announcement by Twitter just once again proves that it is risky for a business to be build on top of any other platform providing a API service.

Would you build a business around a social networking API or for that matter invest in one built on top of such an API?

Any person out there can se how cellphones are revolusionizing our daily lives. Take the average person out there, well I can almost say take any person out there, they own a cellphone with access to the internet and it doensn’t matter where they are they will always reach for their cellphone to seek information. As a result mobile applications have become more and more popular helping people find all sorts of things from music, chatting to checking bank balances.

Google saw the growth of the mobile application industry and announced their beta version of Adsense for Mobile Applications. After all advertisers are always looking for ways to reach potential customers when they are engadged with mobile applications.

Google AdSense for Mobile Applications allows developers to earn revenue by displaying text and image ads in their iPhone and Android applications. For Google’s beta launch, they’ve created a site where developers can learn more about the AdSense for Mobile Applications program, see answers to frequently asked questions and sign up to participate in our beta. Advertisers can also learn about the benefits of advertising in mobile applications.

Check out this short video of Google AdSense for Mobile Applications.