Twitter's New Ad Model

 
Twitter has captured the attention of businesses, celebrities and average Joes, all anxious to maximize the opportunity that this social media platform presents. But what is that opportunity exactly? Twitter has proven to be a powerful buzz-generator for some. Yet for many businesses, its value remains a mystery—particularly when trying to assess a tangible return on the investment required to maintain a Twitter presence.

Recently, Twitter introduced a new ad model that it hopes will change all that. Now, “promoted tweets” will appear at the top of the 600 million search results the site churns out each day. The advertiser sets a budget, determines which tweets to promote and bingo—instant ad buy.

This ad model offers an exciting new entry in the world of online marketing, but what does it mean for your brand? For one, it's hard to know if this ad model will even survive. With Twitter's metrics still undefined and its ad model still untested, many question whether the site's high traffic can drive the revenue needed to sustain the ad model for the long term.

So, should marketers even consider the new Twitter ad model? Absolutely. Just know what you're getting into and approach it the right way. Start by understanding the pros and cons.

THE PROS
Twitter's size. Its huge user base generates more than 50 million daily tweets.

Staying power. While normal tweets only stay visible until they're pushed down by newer tweets in a user's account, a Twitter ad will stick around for as long as users “engage” with it—i.e., retweet it, follow the advertiser, etc.

THE CONS
Uncertain investment. Twitter offers a tenuous link to sales for most advertisers. And because a tweet's value is still unproven, you could be overpaying for your Twitter ads.

Unclear visibility. Sure, Twitter has a ton of traffic, but how many people are actually reading on Twitter? Automated bots and third-party tools now handle the posting for many users—potentially minimizing the number of “live” eyeballs that may see your tweets.

Unchangeable limits. With the standard tweet length of only 140 characters available for your Twitter ad (including links), getting the right message across can be difficult.

Ready to face the challenge? Test the waters first. Every successful online marketing campaign uses regular testing to ensure the viability of both the message and the medium. The same rule applies here. Try different kinds of tweets and different ways to engage users to see what works. Track everything to identify trends and the impact on your business. And don't be afraid to measure your results against activity in other online marketing channels. It's important when adding any new channel to the mix to maintain a holistic view of the entire online marketing spectrum to ensure the best balance of your investment to your results.

Mike Jacobs is chief services officer of online marketing agency iMarketing. He can be reached at mjacobs@imarketingltd.com.