Twitter, the social networking and 'micro-blogging' service, has become a haven of internet advertising.
This seems strange considering the limitations of the service. For example, people have to choose to follow you in order to receive your 'tweets', which limits the reach for advertisers and makes it hard for to catch new consumers.
Maybe the most limiting character of Twitter is that it will only allow you to post 140 characters per tweet.
However, from my experience on Twitter, it seems that advertisers have found clever ways to use this new hot social-networking tool. And it’s a good thing they have learned how to use twitter for advertising: it is growing continually and has become a social-networking staple like Facebook.
So how do advertisers market on Twitter?
There are two main ways used by advertisers:
Companies can use this brand page in several ways. Most use it as a way to inform consumers of new products or services, functioning as a mini-newsletter with links to the full story posted somewhere else. Some news companies, such as CNN or FOX, use Twitter to tweet headlines (with links), which is a good way to entice people to come to their websites.
However, this only works well for brands that already have a strong consumer-base.
Websites like http://sponsoredtweets.com/ showcase many celebrities and their price per tweet for advertisers.
This solves the problem of achieving the twitter follower-base which small companies may not have.
Of course, the Pay-Per-Tweet is available not only for celebrities, but normal people who may have a large following on the internet. Magpie, “the original Twitter advertising network”, gives some guidelines about how compensation works for their Twitter advertising service:
There are two main ways used by advertisers:
- A product page that functions as the mouthpiece for the brand:
Companies can use this brand page in several ways. Most use it as a way to inform consumers of new products or services, functioning as a mini-newsletter with links to the full story posted somewhere else. Some news companies, such as CNN or FOX, use Twitter to tweet headlines (with links), which is a good way to entice people to come to their websites.
However, this only works well for brands that already have a strong consumer-base.
- Paying celebrities to promote the product/brand
Websites like http://sponsoredtweets.com/ showcase many celebrities and their price per tweet for advertisers.
This solves the problem of achieving the twitter follower-base which small companies may not have.
Of course, the Pay-Per-Tweet is available not only for celebrities, but normal people who may have a large following on the internet. Magpie, “the original Twitter advertising network”, gives some guidelines about how compensation works for their Twitter advertising service:
- Pay-per-Sale: Here you get a cut of the sale price when one of your followers buys something on one of our customer's sites through one of your tweets. This is perhaps the most lucrative of the compensation models.
- Pay-per-Lead: Every time one of your followers enquires about a service or joins up for a subscription or the like, you get compensated (compensation rates tend to be 15% greater than Pay-per-View, depending on the campaign)
- Pay-per-Click: You get paid every time one of your followers clicks on a link. Currently Magpie's click rate is double that of any other online advertising.
- Pay-per-View: You get paid a base amount for allowing a tweet to be placed in your stream - this amount depends on the number of your followers and the hotness of your tweets.
This is very similar to compensation models for traditional banner advertisement, and I think it may be more effective since it allows advertisers to reach to a target demographic.
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