During the AdAge Digital Conference held on April 13, Twitter COO Dick Costolo gave agency executives and microblogging enthusiasts a full list of details for Twitter’s new ad model. Since its creation in 2006, Twitter has played a vital role in the evolution of social media marketing. As the site continues to grow, so do its features. As of today, a countless number of companies from Express clothing store to Starbucks coffee shop use the popular social media platform to converse with customers, create valuable relationships and build awareness. Because of this trend, Twitter executives have now created a new direct and effective way for these companies to reach a larger number of potential customers through tweets.
Since this is the first time Twitter is offering companies a controlled and effective approach to advertising through tweets, they are the first to admit that the model has both its upsides and downsides. Like with any launch, it will take time to work out all the kinks before this new method of social media marketing is perfected. On the upside, Twitter promises customers that these Promoted Tweets will eventually appear directly in users’ Twitter streams, which is the ultimate goal for most of these companies. But unfortunately, the launch is expected to start off slow so ads will only show up in the search results page during the first few months of the launch. Below is a quick overview of the main features in the new model:
Resonance Score: Twitter will have an ad ranking algorithm called a “Resonance Score.” This will help determine whether an ad stays in rotation. The score is based on ways people interact with the ad which include number of clicks, retweets, @ reply response, and other factors.
Price: As far as pricing goes, Twitter executives were a little vague with the details. They announced that they will be selling the ads on a CPM (Cost per thousand impressions) basis, but have not announced a price.
Earned Media: Companies will not have to pay for any ads that are passed along or re-tweeted.
Roll-Out Launch Schedule: For the initial launch, Promoted Tweets will only appear on the search results page, but by phase two, they will be available to developers and Twitter clients. Finally, in phase three, ads will eventually appear in users’ customized timelines.
Major companies like Sony Pictures, Bravo and Virgin America will be the first to test the waters of this new method of internet marketing. If the model grows and works according to plan, this could be a major breakthrough for Twitter, a company that continues to revolutionize social media marketing.
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Written By Jacquelynn M.