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<div class="post-2703 post type-post hentry category-twitter tag-advertising tag-platform tag-twitter" id="post-2703">
<h2>Just How Effective is Twitter as an Advertisement Platform?</h2>
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<p>It’s been little over a year since Twitter launched its advertisement services and according to a report by eMarketer, since the introduction of their Promoted Products offerings in April 2010, the number of advertisers using the <a href="../blog/category/twitter">Twitter </a>platform have increased at a steady pace. As of June 2011, there were 600 advertisers promoting their products through the Promoted Products service, representing a significant increase over the past six months in marketers utilizing the service.</p>
<p></p>
<h2><strong>What are promoted products?</strong></h2>
<p>Promoted Products consist of three main areas:</p>
<p><strong>Promoted Tweets: </strong>These are keyword-targeted, cost-per-click ads that are displayed in all the Twitter search results.</p>
<p></p>
<h2><strong>Promoted Trends: </strong></h2>
<p><strong> </strong>These are advertisements that appear under the ‘Trend’ section of a Twitter page and are charged on a flat-rate basis. If a trend has been promoted it will feature a ‘promoted’ icon next to it.</p>
<p></p>
<h2><strong>Promoted </strong><strong>Accounts:</strong></h2>
<p>According to a Twtter representaive, Twitter is using some pretty sophisticated algorithms that suggest Promoted Accounts based on criteria found the user profiles of those they publically follow.</p>
<p>For example, if a user follows a large amount of automobile-related accounts, Twitter may suggest that you follow @volvo, if you don’t already do so.</p>
<p></p>
<h2><strong>Are they effective for advertisers?</strong></h2>
<p>If the advertisers themselves are to be believed, yes and no.</p>
<ul>
<li>Virgin America reported a massive increase in sales as a result of their activity on the promoted products platform and, according to Asian tech catalogue Penn Olson, their promoted tweets significantly contributed to helping them achieve their fifth highest sales day in the entire history of the airline.</li>
<li>According to Ad Age after forking out for promoted tweets on Twitter Volkswagen reached a 52% engagement rate after tweets promoting the launch of their new model of beetle were published on the site.</li>
<li>According to Investor.com, Covario, search marketing specialists, tested the promoted tweets functionality with a client. According to them “the click-through rates were paltry.”</li>
</ul>
<h2><strong>How are they being received by the marketing community?</strong></h2>
<p>It appears that the jury is out on this one. A TWTCON, oneforty survey of 110 marketers revealed that those interested in using Twitter Promoted Products was very much a mixed bag, with the responses being evenly distributed across the categories involving those who would, and would not, consider using promoted products as a marketing tool.</p>
<p></p>
<h2><strong>Our View</strong></h2>
<p>At present the Twitter Promoted Products platform is really a service that is limited to the big guys. The high cost of advertisements on this channel means that it’s very difficult for the smaller businesses to make any real headway.</p>
<p>Very little is understood about the click through rates that the adverts receive and whether smaller, unknown brands would receive the same attention that the bigger brands do.</p>
<p>However, Twitter clearly are trying to address some of these problems and the platform is in beta, afterall. They are beginning to utilize more geo-targeted ads that may be suitable for smaller businesses and they are looking at lower cost advertising options. We expect things will continue to evolve at a lightening speed at Twitter over the forthcoming months and expect to see more and more offerings that may just tempt the SMB crowd.</p>
<p style="font-style: italic;">
<p>Spencer Belkofer’s startup, Lumin Interactive, is an Internet marekting company in Birmigham, AL. An <a href="https://luminconsulting.com/services/search-engine-optimization/">Alabama SEO company</a>, Lumin also offers performance-based Google Places optmizaiton at affordable rates.</p>
<p>Tags: <a href="/" rel="tag">advertising</a>, <a href="/" rel="tag">platform</a>, <a href="../blog/tag/twitter" rel="tag">Twitter</a></p>
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