Twitter hashtags are used to sort and combine tweets around a particular topic. Putting a hashtag after a tweet (like #brandflakes) would allow Twitter search engines to pull together all tweets regarding that particular topic. The practice is popular among tweeters who are chatting within any meme.
And now, it's jumped out of the Twittersphere. Caffeine Goddess reports on Land Rover ads asking people to tweet about their brand, and use the hashtag #LRNY. You can see the results here.
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