Twitter is on the road to cementing itself as a formidable platform for big brands and well known products to advertise on. For the right kind of client, Twitter’s “Promoted” ad products can be a highly successful return on investment. However, many are sceptical of the heavy price tag and the success of the platform.
Many have criticised Twitters advertising methods however many fail to take into account the type of brands which Twitter want to attract. Unlike search engine marketing, those who advertise their message with Twitter have a better chance of creating a long-term relationship with consumers. Twitter promotions are also more widely viewed across its entire network, making it highly effective for clients that want to reach as many people as possible. Clients such as HBO, Samsung and Toyota have used this platform which has seen Twitter work with 600 advertisers on 6,000 campaigns since April of 2010.
Twitters Promoted Accounts and Promoted Tweets offerings are on an auction-basis while Promoted Trends now cost $120,000 per day, which is up from $25,000 to $30,000 since its launch date. The company has begun requiring that advertisers spend a minimum of $15,000 over three months on bid-based Promoted Accounts and Promoted Trends offerings.
The minimum five figure sums is a heavy price tag however this shows that Twitter means business when it wants to be a formidable avenue for advertisers to consider. Twitter director of revenue Adam Bain suggests that Twitter provides advertisers with higher engagement levels than Facebook. He also suggested its better at reaching consumers than display ads because with display, “You’re just in the sea of trying to catch people through media impressions when they’re on different sites across the web.”
To prove his point, Bain pointed to the Promoted Accounts offering, which allows advertisers to pay per follower based on a bid system. “Paying $4 for a follower is a pittance because the ROI is insane. Because again once they have a follower, they can keep marketing to that guy as many times as they want without worrying about where they are across the web or what kind of mindframe they’re in,” suggested Bain.
With such high price tags as entry points into Twitter’s advertising services, it’s clear that Twitter intends to attract and maintain quality partnerships. And although that may spell less income for them in the short term, it may just be the best move for themselves and their users in the long term.
The million dollar question at the end of the day is; will many big business justify the price tag and will they believe their clientele will think of them consider a brand if they situated top of your twitter scream? Will this be the opening of huge revenue scream for twitter or just a failed attempt to compete with Facebook for big brand attention?