Twitter Advertising-Four Marketers Test The New Ad Platform

July 2011
Twitter Advertising:
Four Marketers Test the New Ad Platform
Kimberly Maul kmaul@emarketer.com
Contributors Debra Aho Williamson, Tracy Tang
Executive Summary: After debuting in 2010, Twitters Promoted Tweets, Promoted Trends and Promoted Accounts have proved successful for many companies. While Twitters ad platform is not as mature as those on other social sites, there are several ways in which this social network offers a different type of program.
Number of Companies Worldwide that Advertise on Twitter, End of 2010 & June 2011
600
As of June 2011, Twitter has worked with more than 600 marketers on nearly 7,000 promoted trend, tweet and account campaigns. Yet there are drawbacks. The data reminds us that Twitters user base is small, so marketers dont have the same reach as on other social networks. Additionally, the platform is changing, as Twitter tweaks its advertising offerings, and marketers should be ready to deal with changes in the product and back-end. Others in the industry point to the fragmentation and possible alienation of Twitter users as challenges to Twitters monetization model. In this report, eMarketer highlights case studies showing how RadioShack, CMT, ZUJI Australia and Unilevers Magnum Ice Cream brand leveraged Twitters ad platform in its first year of existence. These marketers have found that advertising on Twitter gives them a tech-savvy reputation, allows them to integrate ads seamlessly into social media content, provides real-time interaction and gives added value to already buzz-worthy events. Key Questions
150
End of 2010
129172
June 2011
www.eMarketer.com
Source: Twitter presentation at All Things Digital D9 conference, June 2011
The eMarketer View Twitters Ad Platform Gains Traction How Marketers Execute Twitter Ads Whats Next Conclusions Endnotes Related Information and Links
2 3 7 13 15 15 16
How
can marketers make the most of Twitters advertising platform? are RadioShack, Unilever, ZUJI Australia and CMT using Twitters promoted products? what ways are companies and brands linking Twitter advertising back to business results? next for the Twitter ad platform?
How
In
Whats
Digital Intelligence
Copyright 2011 eMarketer, Inc. All rights reserved.
The eMarketer View

Marketers are paying attention to how Twitter is incorporating advertising into its site, and are seeing how the ad platform is different than other social network advertising.
Twitter offers advertisers a chance to interact with fans in real time, buy ads that look and feel like organic content on Twitter, and enhance buzzed-about events. Several companies have publicized their results, including Volkswagen, which used a Twitter ad in conjunction with a 2011 Super Bowl spot highlighting the New Beetle. But some in the industry are still skeptical and, in order to make a serious impact, Twitter must scale its advertising, add new ways to reach users and work to make the experience seamless for both consumers and companies. Twitter already seems to be taking such concerns into account. Just this month, for example, it said it would add the ability for marketers to target promoted tweets directly to their followers, greatly increasing the likelihood such tweets wont get lost in followers ever-flowing timelines. Twitters ad platform will grow in size and offerings. In January 2011, eMarketer estimated that Twitter would earn $250 million in advertising revenue in 2012. eMarketers updated social network ad spending numbers will be released later this year and will take into account developments from the company and the performance of Promoted Products. There will be more changes to Twitters ad platform this year, including the addition of a self-serve option. Twitter is also talking about the addition of scalable ad units at some point in the future. Marketers need to discover how Twitter ads can work for them. Each promoted producttrend, tweet or accountserves a different purpose as part of an overall ad program, and brands are experimenting with all three. Twitter is very fast-paced and companies have found that ads on the site work well when they connect with real-time events, particularly ones that would get attention on Twitter anyway. Additionally, the ads are featured alongside regular content on Twitter, making them seem more integrated than other forms of social media ads. As more marketers test these product offerings, the industry will settle on best practices for using Twitter ads to reach marketing and advertising goals.
As with any new program, there are obstacles. Twitter must deal with several issues plaguing the company, most notably the fragmentation of users who access its content via different platforms. With the acquisition of Twitter application TweetDeck, the company proved it is serious about bringing consumers together on its platform, where it is easier to advertise and market to users. Additionally, marketers should be thoughtful when working with Twitter, as with any new platform. There is a possibility that the ad products could change, and additionally, a brand-related conversation can spiral out of control. Marketers should also manage their expectations and not anticipate the same levels of engagement that brands such as Volkswagen have seen so far. Because Promoted Products is fairly new and Twitter has control of much of the data surrounding measurement of campaigns, there is not much information focusing on advertising specifically. However, Twitter is working with advertisers and providing insights to partners post-campaign. eMarketer has collected several case studies to see how advertisers have leveraged this new advertising platform and seen success:
RadioShack.
A heavy user of Promoted Products, RadioShack purchased a Promoted Trend in May to garner support for the Team RadioShack cycling team, and gained both Twitter followers and Facebook likes. Leading up to its annual CMT Music Awards, the network tested promoted tweets and incorporated this new ad format into the overall marketing program for the show. Ice Cream. The Unilever brand brought together two UK favorites by purchasing a Promoted Trend for the royal wedding to promote the UK-based ice cream brands launch in the US. Australia. As one of Australians first companies to use Twitters Promoted Products, the company is taking a long-term approach to see how advertising on the site can build brand awareness and connect the travel brand with customers.
CMT.
Magnum
ZUJI
For the list of industry experts interviewed for this report, see the eMarketer Interviews section.
Twitter Advertising: Four Marketers Test the New Ad Platform
What Are Promoted Trends, Tweets and Accounts?

In April 2010, Twitter introduced its first ad product, the Promoted Tweet. Promoted Trends debuted in June 2010 and Promoted Accounts in October 2010. These ad products allow companies to leverage the hot trending topics on Twitter to become a part of the conversation through advertising. The three options for Twitter ads each have their own strategy.
Promoted
Twitters Ad Platform Gains Traction

In the 15 months since Twitter unveiled its advertising platform, the company has gained more users and is getting more attention from advertisers. In 2011, eMarketer estimates that 11% of US adult internet users will be on Twitter, increasing to 14% by 2013.
Comparative Estimates: US Twitter Users, 2009-2013 % of internet users
2009 eMarketer, Feb 2011 (1) Pew Internet & American Life Project, June 2011 (2) Arbitron and Edison Research, May 2011 (3) ExactTarget, July 2010 (4) BIGresearch, Sep 2010 (5) 7.5% 2.0% 2010 9.0% 8.0% 7.0% 7.0% 6.5% 2011 11.0% 13.0% 8.0% 2012 12.5% 2013 14.0% -
Tweets: This ad format gives prominent placement to a specific tweet from an advertiser. The tweet will show up as promoted when users search for certain phrases or non-promoted hashtags. Pricing is based on an auction format. Trends: This moves a specific hashtag to the top of Twitters Trends list, and highlights a tweet from the advertiser when users click to learn more. Pricing is $120,000 a day, according to Adam Bain, Twitters president for global revenue. The price was raised earlier this year in response, partly, to market demand, Bain said in an interview with eMarketer. Accounts: This highlights a branded account as one of the top accounts on Twitters Who to Follow list. Pricing is based per new follower.
Promoted
Promoted
Note: (1) ages 18+ who access their Twitter account via any device at least once per month; (2) ages 18+; (3) ages 12+ who have ever used Twitter; (4) ages 15+ who use Twitter daily; (5) ages 18+ who regularly use Twitter Source: eMarketer, Feb 2011; various, as noted, 2010 & 2011
128562 www.eMarketer.com
For additional information about the chart above, see the Endnotes section.
The promoted trend is what sparks the interaction and sparks the experience, said Adrian Parker, social media director at RadioShack, in a June 2011 interview with eMarketer. But without the promoted tweets, it would end after a day. Promoted accounts benefit the company through an increase in followers. Over the past several months in media interviews and at industry events, Twitter executives have released various statistics about Promoted Products, including the fact that 80% of companies that advertise on the site return. Additionally, the average engagement rate for promoted tweets is between 3% and 5%, while the average cost-per-follower for a promoted account is less than $10.
Twitter Snapshot
500,000 600 80% 80% 40% 3%-5% <$10 (1)
129150
Worldwide, there were 129.4 million unique visitors to Twitter in March 2011, according to data from comScore. Considering that Twitter did not offer advertising until it was nearly 4 years old, the company has ramped up its ad business quite rapidly since April 2010. At Federated Medias Conversational Marketing Summit in New York on June 6, 2011, Bain said that the company prefers to figure out its products and user experience first, then incorporate ads.
accounts created daily advertisers currently supported by Twitter vs. 150 advertisers at the end of 2010 of advertisers renew with Twitter of engagement is people clicking on a tweet, while 20% is a retweet or @mentions or @replies of users follow at least one brand engagement for Promoted Tweets or up to 7%-10% when you combine Promoted Tweets and Trends is the average cost per follower for Promoted Accounts
www.eMarketer.com
Source: Twitter and (1) ClickZ compiled by eMarketer, 2011

For additional information about the chart above, see the Endnotes section.
By the end of 2010, Twitter had partnered with 150 companies for advertising campaigns on the site. By June 2011, that number had jumped to 600.
Number of Companies Worldwide that Advertise on Twitter, End of 2010 & June 2011
600
Twitter Activities of UK and US Companies, Jan 2011 % of respondents

Use Twitter for product announcement 70% Use Twitter for customer service 48% Use Twitter to track users 37% Promote discounts, coupon codes 28% Use Promoted Tweets (advertising) 25% Use Promoted Trends (advertising) 22% Currently do not use Promoted Tweets but plan to in the next 6 months 9%
150
End of 2010
129172
June 2011
www.eMarketer.com
Source: Twitter presentation at All Things Digital D9 conference, June 2011
Currently do not use Promoted Trends but plan to in the next 6 months 4% None of the above 7% Note: n=590 Source: Gartner, "Business Gets Social: Social Media Tools and Sites, Buyers and Budgets," March 29, 2011
In January 2011, Gartner surveyed IT and marketing professionals from the US and UK for the Business Gets Social: Social Media Tools and Sites, Buyers and Budgets study. The participants, all of which were from companies that had more than 50 employees, were from a wide spectrum of industries and were about half US-based and half UK-based. Of the nearly 600 respondents whose companies used Twitter, Gartner found that 25% used a promoted tweet as part of their Twitter activities, and 22% used promoted trends. Additionally, 9% hadnt yet used promoted tweets but planned to in the next six months, while 4% planned to experiment with a promoted trend.
However, looking at companies that used social media overall rather than just those who used Twitter, these percentages would likely be much smaller. Additionally, these advertising activities trailed broader marketing activities by a wide margin: 70% of respondents said they used Twitter for product announcements and 48% used it for customer service. Because of marketers inherent interest in Twitter and the real-time engagement it allows for earned media, marketers were quick to pay attention to the new Promoted Products when they debuted. In November 2010, the TWTRCON Conference and oneforty, an online directory for Twitter tools, asked US marketers about their reaction to seeing promoted products on Twitters site. A full 82% of respondents had noticed a promoted tweet, compared to 68% who noticed a promoted trend and 60% who noticed a promoted account. The data did not distinguish between marketers that were using Promoted Products vs. those who were not.
Twitter's Promoted Products that Have Been Noticed by US Marketers Who Use Twitter, Nov 2010 % of respondents
Tweets Trends Accounts 60% 68% 82%
Note: n=103 Source: TWTRCON and oneforty, "Twitter Promoted Products Poll," Nov 11, 2010
Naturally, marketers are paying close attention to the platform so they may be more likely to notice promoted products, when compared with the average consumer. Additionally, 70% marketers had a positive or neutral reaction to seeing a promoted tweet and 69% had a positive or neutral reaction to a promoted trend. What Twitter Ads Offer Marketers The nature of Twitter means ads on the platform have a very real-time feel and can be leveraged to coincide with live events. Promoted tweets, trends and accounts look very similar to the traditional content on the site, integrated into the user experience. And Twitters ads can be connected to buzzworthy events and happenings to enhance the conversation already taking place and bring additional value to an overall marketing campaign. Twitter also offers a place for brands and their fans to connectand consumers have said they are willing to do so. The May 2011 Twitter Q&A Census from InboxQ found that more than half of Twitter users would like businesses to answer their questions on Twitter.
Twitter Users Worldwide Who Would Like to Receive Answers from Businesses* to Their Questions on Twitter, by Number of Followers, May 2011 % of respondents
<100 100+ 57% 59%
Going deeper, InboxQ found that 64% of Twitter users would be more likely to make a purchase from a business that answers their questions on Twitter. While responding to questions on Twitter is more of a marketing tactic than advertising, the implication is clear: Consumers want to use Twitter to interact with brands, and their offline actions are often influenced by what happens online.
Likelihood of Twitter Users Worldwide Making a Purchase from a Business that Answers Their Questions on Twitter, May 2011 % of respondents
Less 12%
As likely 24%
More 64%
Source: InboxQ, "Twitter Q&A Census," May 26, 2011

Note: *assuming the quality is as good or better than the answers received from followers Source: InboxQ, "Twitter Q&A Census," May 26, 2011
Additionally, this data supports statements from Twitter executives who tout the high engagement rates of the site. Marketers want customers and fans who dont just follow a brand or like a page, but who want to continue to connect and interact with them, around topics related to the brand and its products, as well as other topics of interest. For our clients and brands that we work with, the promoted tweets and trends can be a great way for them to create a presence for the brand and put their content in relevant conversation streams, said Ben Straley, CEO and co-founder of advertising technology platform Meteor Solutions, in a June 2011 interview with eMarketer. This is something a lot of brands are experimenting with, as the hurdle to test them is very low. Similar to other forms of social media advertising, Twitter offers a place for companies to connect with their followers long after a campaigneither paid or unpaidis over. Promoted accounts gain fans, and promoted tweets and trends encourage users to click on links, retweet content or interact with the brand.
Marketer Skepticism Persists Several brands and marketers have seen success using Twitters Promoted Products, but some in the industry are still skeptical of the offerings. Twitters user base is growing but small, there is not much publicly available data on advertising on the site and Twitter continues to tinker with the platform. There are several issues with Twitter and its advertising platform that the industry is currently focused on:
Fragmentation. The Twitter
Brand
control. Marketers also take a risk when advertising on Twitter, as a conversation can quickly and easily spiral out of control. Additionally, with paid Twitter ads, tweets become more high-profile and any missteps are even more noticeable. For example, on July 1, 2011, McDonalds purchased the promoted trend #ANewMcDFavorite to tout its smoothies. McDonalds, however, was unprepared for the negative tweets posted to the hashtag by users declaring their belief in the unhealthy nature of McDonalds products and the high sugar content in their smoothies. In the middle of the day, McDonalds switched its trend to #LoveMcDsSmoothies to promote more positive aspects of the drinks, but Twitter users continued to badmouth the brand there. While McDonalds is no stranger to criticism and negative comments about its products, the high-profile nature of a Promoted Trend made those negative tweets more visible to Twitter users.
ecosystem is spread out, with users accessing their accounts via TweetDeck, HootSuite and other applications. Promoted products are more visible on Twitters site than through third-party tools, and Twitter must figure out a way to combat that. Twitter purchased TweetDeck in May 2011 as a step toward consolidating the user experience and in early July purchased social analytics company BackType, which would improve measurement for both paid and earned Twitter campaigns. Meanwhile, media outlets have reported that the FTC is investigating the way Twitter treats outside developers and if the social networks practices are harming competition. Twitters swimming upstream, and those acquisitions are necessary, but theyre inherently trying to fix a model that was too open, said Nathaniel Perez, global head of social experience at digital advertising and marketing agency SapientNitro, in a June 2011 interview with eMarketer.
Sustainability. Twitter
is working with advertisers to make the advertising experience seamless. The biggest thing they do is give data on the front end to make you smarter, said Parker, from RadioShack, who has worked with Twitter on several Promoted Product purchases. Then at the end of your campaign, they actually send you a recap of suggested enhancements and takeaways. I havent seen that from a lot of partners recently. But will that level of personalization and customization be sustainable as the platform grows and more marketers participate?
Integration.
Integration is also important, as some interviewed by eMarketer felt the ads werent vital to the conversations happening between users. Considering Twitters strategy to focus on user experience first, it may be more difficult to bake advertising into the site after the fact. The way you use Twitter is by picking only the people that you actually want to hear about, and listen to their messages, said Matt Britton, co-founder and CEO of social media agency Mr. Youth, in a June 2011 interview with eMarketer. Its very hard for an advertising message to cram its way into that experience.
Key Takeaways Twitter is evolving its ad platform, fixing some of the issues that marketers have concerning ads on the site. As the site grows and more users sign up, this new form of advertising can allow marketers to advertise in real time, enhance popular events in the social space and create ads that more organically fit in with social media content. As with any new form of advertising, there are drawbacks and a learning curve to using Twitters Promoted Products ad platform. But by analyzing other companies and their work, marketers can gain insights into what Twitter activities get consumers to take notice of them or how Twitter ads may fall short of other social network adsand thereby mold a Twitter campaign unique to their brand.
How Marketers Execute Twitter Ads

Twitter is still experimenting with new ways to incorporate advertising into the site, but there is no shortage of brands willing to join them for the ride. These include Volkswagen, Old Spice and Papa Johns, all of whom have seen success on the site.
In May 2011, Advertising Age compiled a list of the top promoted tweets and the engagement rates companies saw for their work.
Top 5 Promoted Tweets Worldwide, Ranked by Engagement, 2010-2011
1. Volkswagen
Tweet: The 21st Century #VWBeetle was just revealed. Check out the revolutionary new take on the iconic design at http://vwoa.us/hZdaLm
(4/18/2011)
Eighty percent of marketers that use the platform come back again. Marketers dont repeat something that doesnt work.
Adam Bain, president of global revenue at Twitter, Conversational Marketing Summit, June 6, 2011
What Is Success on Twitter?
Companies have different perspectives of how many retweets or new followers are considered a success. But overall, the way brands are measuring their Twitter participation is through engagementor how often followers interact with their content. Twitters Bain explains that engagement with advertising on Twitter is mostly about consumers clicking on the ad, with approximately 80% of engagements on Twitter falling into that category. The remaining 20% of engagements include retweeting a promoted tweet, using the @ function to respond to or mention the company, sending a direct message or marking a paid ad as a favorite. The retweet is an interesting and, in some cases, even stronger signal than a click, because youre basically broadcasting out to your network that you endorse or want to rebroadcast this ad out to your follower base, said Bain. Volkswagen, Old Spice and Papa Johns have publicly discussed double-digit engagement rates for their promoted tweets, but have not shared sales or business results from this advertising. For now, engagement is the metric companies are using to measure success and other marketers are looking to these brands for inspiration when purchasing Promoted Products.
Engagement
52%
Why it worked: Linked to a live unveiling of the New Beetle, teased during Super Bowl.
2. Google
Tweet: Search: now faster than the speed of type. Introducing Google Instant http://bit.ly/cgHv2Y (9/8/2010) Engagement
38%
3. Old Spice
Why it worked: New tech products resonate and Google used Twitter to launch Google Instant, NexusOne and Chrome.
Tweet: Hello ladies! Let my newest commercial take you on a scent vacation. http://www.youtube.com/OldSpice #scentvacation (2/6/2011) Engagement
36%
4. Ford
Why it worked: Connected paid tweet to existing social campaign. Brought Old Spice guy out of retirement on Twitter.
Tweet: RT @FordMustang Have you heard? The 2012 @ Ford Mustang Boss 302 was revealed today! http://cot.ag/cegLYB (8/13/2010) Engagement
34%
5. Papa John's
Why it worked: Auto category strong on Twitter. Linked to exclusive spy photos of the Mustang Boss 302.
Tweet: Happy Valentine's Day!! Show some love for your Valentine with a #HeartShapedPizza. Order at http://bit.ly/ff0Oc0 http://twitpic.com/3zl47p (2/13/2011) Why it worked: Good timing and a social Engagement component encouraged users to submit and retweet 34% photos of people receiving a heart-shaped pizza. Note: read chart as saying 52% of people exposed to the Volkswagen ad interacted with it Source: Twitter as cited by Advertising Age with Advertising Age analysis, May 9, 2011
Television network CMT is one company whose efforts have fallen in the average range, with a 3.5% engagement rate on a recent Twitter advertising campaign for the annual CMT Music Awards. Our goal is ultimately to drive ratings, said Chris Nelson, director of social media for CMT, in a June 2011 interview with eMarketer. We set secondary metrics for us to look at, such as number of engagements, number of hashtag mentions. But despite not being able to connect money spent on Twitter to more people watching the show, Nelson said CMT was pleased with a recent campaign around its awards.
While these results may be outliers, the campaigns provide roadmaps for other brands wanting to leverage Promoted Products. Twitter reports that the average promoted tweet sees between a 3% and 5% engagement rate, and up to 7% to 10% when combined with a promoted trend.
Case Study: CMT

Television network CMT has been marketing on Twitter for four years. For the 2011 CMT Music Awards on June 8, the network incorporated Twitter ads into its marketing campaign and connected its social media outreach to offline, on-air content.
Strategy A week before the awards show, CMT began using promoted tweets and a promoted account. The network decided against using Promoted Trends because of the high cost$120,000 a dayand the added flexibility that comes from the other two ad formats. With promoted tweets, we could mix it up a bit and make sure the content was always fresh, Nelson said. We used the analytics dashboard that goes with setting up and optimizing the campaign to see, Ok, were using five promoted tweets right now, but which ones are performing best? CMT linked its ads to search terms related to the celebrities involved with the show, such as Kid Rock or Taylor Swift, and to general terms such as summer or family. The ads announced new performers, led people to online voting, included videos and encouraged tune-in. The promoted account was used throughout the week to gain followers for CMTs @FollowCMT account. Additionally, CMT pushed the Twitter participation through other means, promoting its hashtag #CMTawards in emails, newsletters and other materials about the show.
Background CMT tested Twitters Promoted Products platform in April 2011 to promote its new show CMTs Next Superstar. It advertised on Twitter again in June, to support the CMT Music Awards. We wanted to have some familiarity with the platform and how it works, said Chris Nelson, director of social media for CMT, in a June 2011 interview with eMarketer. It was helpful to understand how the targeting worked and how to adjust the promoted tweets and promoted accounts over the course of the campaign. Challenges CMT wanted to integrate Twitter into its overall campaign for the awards and tie that outreach back to ratings. Because awards shows have so many moving parts performers, celebrities in the audience, plus the awards themselvesCMT had to decide which of Twitters promoted products would allow the flexibility to promote several aspects of the show over a period of time. Even though CMT used Twitter ads for the smaller CMTs Next Superstar campaign, Nelson said the company was unsure how they would affect the awards show. On that first go-around, he said, we did it with a brand new show that nobody knew anything about. So with this, it was tough to gauge what kind of traffic we would get.
With all the focus on its Twitter participation, Nelson said it made sense for CMT to also advertise on Twitter, to complete the circle. The day of the awards, the network posted tweets on-air during the red carpet preview and displayed the hashtag on-screen during the show. Throughout the awards broadcast, @FollowCMT announced winners, posted pictures and retweeted related content. Results CMT gained 4,000 new followers in the week it advertised the CMT Music Awards on Twitter. The hashtag #CMTawards was mentioned more than 30,000 times during the night of the show and the CMT Music Awards section on CMT.com saw more than 265,000 unique visitors during the evening, up 40% from 2010. Of those visitors, 38% were driven by social media. Nelson said the company saw a 3.5% engagement rate with its tweets. Our followers were definitely clicking through to the site, watching videos, retweeting and that sort of thing, which expands the reach of the show, Nelson explained. While we dont know exactly how that engagement reflects on ratings, if we do see tremendous growth in one of those areas, we try to work under the assumption that higher engagement equals higher opportunity for viewership.
Key Takeaways By comparing the campaigns for the new CMT show and for the established awards show, CMT learned that Twitter ads work well when used to support an event or something of note, Nelson said. If you have something that gets a lot of buzz on its own, its great to partner with Twitter ads and get residual value by supporting it on multiple platforms, he said. Going into its first test, with CMTs Next Superstar, the network didnt have high expectations and mostly used Twitter ads as a way to get to know the system and ad platform. Next Steps Nelson said CMT will definitely use Twitter ads again, but their use will be dependent on the type of campaign. Another tent-pole event, such as the CMT Music Awards, would be a good opportunity, he said. The network plans to experiment more with the platform and will continue to focus on integrating it with other elements of campaigns. For more information about how television networks are using social media, see eMarketers June 2011 report, Socializing the TV Experience.
International Spotlight: ZUJI Australia

ZUJI Australia was one of the first companies in Australia to test Twitters Promoted Products. As part of the Travelocity family, the online travel reservation site has been on Twitter with @ZUJIAustralia since 2008. ZUJI Australias goals are to raise brand awareness and interact with current and potential customers, said Katie Malone, the companys head of marketing and communications, in a June 2011 interview with eMarketer. As a digital company, it was important for ZUJI Australia to be seen as a leader in the tech space. Malone explained that the company started using promoted tweets and accounts at the end of May 2011 and is taking a long-term approach, working to slowly build brand awareness with the ads. Weve really stretched our campaign with lower frequency over a longer period of time, she said. We didnt go out with a Wow! $1 Hotels! offer. It was more of a Hey, were ZUJI, we want to help you travel in your own style. The company noticed that Twitter is relevant for the travel sector, as consumers enjoy sharing travel stories on the site. Twitter is also a popular site for Australians. Each country or culture has a different approach to how they use social media, Malone said. Our topics here are mainly relevant to Australians and we want Australians to be able to relate to us. The results are still coming in, but the company had already more than doubled its follower base in the two months since it started using Twitter ads, from 1,800 followers to more than 3,600. Malone said one lesson the company learned was to keep its keywords tight, so ads only appear where the company is relevant. This means purchasing promoted tweets for search terms and nonpromoted hashtags that relate to travel, Australia and other issues where ZUJI could contribute. By participating in conversations relevant to the brand, ZUJI Australia is seen as an expert rather than imposing on a conversation with an un-related ad. Our next step, she added, will be to see how our relationship evolves with the new followers that resulted from the campaign.
Conversations around events, brands and news are happening on Twitter whether or not marketers and companies are involved. Twitters ad platform gives these companies a way to connect with fans in real-time around these events. Meanwhile, promoted accounts can be used to gain followers leading up to the event. CMT was able to encourage voting and tune-in and connect with fans during, as well as after, the show. The flexibility of promoted tweets and promoted accounts, combined with the auction-based pricing model, allows brands to mix up their strategy, change keywords or tweet new content, depending on how their current ads are performing. Additionally, advertising on Twitter can have a positive effect on a brands reputation. CMT took the country music industrywhich can often seem old-fashionedand made it seem tech-savvy, using on-air hashtags and mentions to encourage its fans to interact online. Another brand that used Twitter to be seen as tech-savvy is online travel reservation site ZUJI Australia. As one of the first companies in Australia to advertise on Twitter, ZUJI is taking a long-term approach to its strategy around Twitter Promoted Products.
ZUJIs Malone hits on an important element for marketers to remember: The relationship doesnt stop when the ad campaign is over. This is particularly important when marketers plan their post-ad campaign strategy for keeping up interaction with new followers and those who interacted with the brand during a Promoted Product push. The S-Net: The Impact of Social Media study, sponsored by ROI Research and Performics, found that 61% of Twitter users who followed a company or product talked about it, and 59% recommended it. By comparison, 49% of Facebook users talked about a company or product after liking their page, and 53% recommended it. Such data does not differentiate between consumers who followed the brand after seeing a Promoted Product ad and those who independently found the brand on Twitter. Either way, they are still following the brand, which has a responsibility to make sure followers are engaged, particularly after a paid or unpaid Twitter campaign is complete.
Activities that US Social Network Users Are More Likely to Do After They Follow a Company/Product on Facebook or Twitter, April 2011 % of respondents
Talk about the company or product 61% 49% Recommend the company or product 59% 53% Purchase the brand/company's product 58% 53% Link to an ad for the company or product 54% 42% Attend a promotional or sponsored event 47% 34% Twitter (n=372) Facebook (n=1,906)
Case Study: RadioShack

Consumer electronics retailer RadioShack has purchased six promoted trends since it began advertising on Twitter at the end of 2010. Its campaign for a professional cycling race in May 2011 netted the company more than 1,200 new followers. It also gave RadioShack insights about how to use Twitter ads in a new way.
Background RadioShack has a relationship with cyclist Lance Armstrong and sponsors Team RadioShack riders in races around the world. For the annual Amgen Tour of California, held this year from May 15 to 22, RadioShack wanted to incorporate Promoted Products into its overall marketing campaign supporting the team. We kicked it off with a promoted trend on the first day of the race, and then we had a Facebook tab that was the epicenter for all the content, said Adrian Parker, social media director at RadioShack, in a June 2011 interview with eMarketer. We used Twitter to spark [the campaign], but it was just one part of a bigger campaign. Challenges This use of Promoted Products was different from RadioShacks previous Twitter campaigns because it was centered on a hashtag relevant only to RadioShack: #BackTheShack. The companys previous promoted trend campaigns used hashtags #UNeedANewPhone and #IfIHadSuperpowers, both of which were hashtags prior to RadioShacks participation, and featured tweets not related to the RadioShack promoted trend. This time, the conversation would be led solely by RadioShack. RadioShack also needed to find a way to keep followers attention after the first day of the campaign. A promoted trend is an easy way to create 24-hour excitement, Parker said. But the challenge is how do you make it relevant a week later?
Note: ages 13+; among respondents who follow at least one company Source: ROI Research Inc., "S-Net: The Impact of Social Media" sponsored by Performics, June 7, 2011
When we talk about being on the pulse, leveraging trends, being in the know and engaging with consumers, Twitter is the first place you look, said SapientNitros Perez. Youve got to quickly acquire followers through media buys, but then youve got to refine that following in your relevance and invest in another wave. RadioShack has purchased several Promoted Products since the program began, and works to keep fans engaged year-round by discussing cycling as well as consumer electronics on its feed.
10
Strategy On May 15, RadioShack purchased the #BackTheShack hashtag. During the day, the company tweeted about the California race and team and encouraged users to go to a tab on the Facebook page (https://www.facebook.com/ RadioShack), which had interactive elements, including contests and videos. This campaign was a great way for us to make RadioShack and Twitter relevant to cycling fans, but also to people who werent cycling fans, Parker said. By also using the Tour of Californias #ATOC hashtag, RadioShack got involved with the overall conversation around the race and was able to introduce its Twitter feed to cycling fans. After the promoted trend ran for 24 hours, RadioShack purchased promoted tweets throughout the rest of the week, highlighting the tweets that reminded users to enter the daily contests on Facebook. The company also tweeted regular updates about the cyclists, announced the daily winners of the Facebook contests and replied to fans. Parker said RadioShack did not use a promoted account during this campaign, though the company has purchased them in the past. Results When it comes to measuring success, RadioShack looks at engagement metrics, such as new followers, retweets and other analytics, as well as measuring conversation, share of voice and resonance. RadioShack gained 700 followers on the first day of the campaign, when the promoted trend ran. During the entire week, its Twitter account gained 1,200 new followers, while its Facebook page gained 1,800 likes. There were more than 16,700 mentions of #BackTheShack and 4,000 retweets of RadioShack tweets during the week. We were able to carry a conversation for more than just a 24-hour period, Parker said. A Twitter conversation for that long was something that we had never done before. Key Takeaways With the #BackTheShack campaign, RadioShack took a gamble by working with a brand-specific hashtag. We learned that we can do both a branded conversation that just supports RadioShack, like #BackTheShack, Parker said, and we can also spark a conversation thats bigger than our brand, but where we have a front seat, like #UNeedANewPhone. Additionally, Parker said that using the combination of promoted tweets and a promoted trend reinforced his opinion that Twitters ad products are best viewed as a suite that work in tandem to keep a conversation going. Twitters flexibility is key for brands because youre able to manage your investment in real time, Parker said. A brand can monitor how engaged fans are with the content and change the plan for maximum impact.
Next Steps RadioShack planned a Twitter advertising campaign around the Tour de France in July. The company intended to use Promoted Trends to kick off the campaign and follow it with promoted tweets and a promoted account. Prior to the race, the company searched for a team of social media correspondents to tweet about and report on the famous cycling race from their mobile devices.
Integrating Twitter Ads As with all social media outreach, having an integrated model can provide greater returns. Most marketers found success when partnering Twitter advertising with earned Twitter activities, other social network outreach and overall marketing plans.
Brands cannot live by tweets alone.

Adrian Parker, social media director at RadioShack, in an interview with eMarketer, June 16, 2011
Weve actually tested a lot of platforms, and each one plays an important part of that arsenal, said RadioShacks Parker. Where we see Twitter really being aggressive is real time. We can send the message out instantly and get real feedback. For the recent US launch of the Magnum Ice Cream brand, Unilever hired Karl Lagerfeld to create commercials and online videos featuring actress Rachel Bilson, partnered with the Tribeca Film Festival, and leveraged social networks such as Twitter and Facebook for paid and earned media. Twitter is one element of a broader marketing campaign, said Mike Hurley, senior brand manager for Magnum Ice Cream in the US, in a June 2011 interview with eMarketer. Rachel Bilson was the star of our television spot. We worked with People magazine and other lifestyle publications. And we had Facebook activity and were on Twitter. You really need to look at it coming together as an integrated, full 360-degree plan. Twitters Bain was also excited by the way Unilever incorporated Twitter into its marketing plans for the launch. They were marketing the Magnum Ice Cream Bar, which is a bar that started in the UK that they brought to the US, he explained. The royal wedding was the perfect vehicle to launch that here.
11
Case Study: Unilevers Magnum Ice Cream

Unilevers Magnum Ice Cream brand, sold in 40 countries, is well known outside the US. When the company launched in the US, it used marketing that focused not only on selling the product, but selling the whole lifestyle of the brand based on luxury and indulgence. A key part of the effort was a marketing and advertising campaign on Twitter that leveraged the brands tagline, For Pleasure Seekers, and tied in with Britains royal wedding in April 2011.
Strategy Magnum launched its Twitter account, @MagnumIceCream, in March. It posted tweets teasing the April 21 launch event, talking about the brand and asking followers when they had first tried it and about their favorite indulgences. During the launch event, Magnum posted photos and video content. Then on April 29, Magnum purchased a promoted trend ad using the hashtag #RoyalWedding to solidify the connection with its target audience and gain more followers. Magnum wants to be where its customers are, Hurley said, and it believed many of them would be using Twitter to talk about a news event that was important to them. Its ad read: Join us as we watch the @PBS livestream of the #RoyalWedding, and included a link to the Ustream page. We went into Twitter making a guess that this was going to be a site that resonated with our consumers, Hurley explained. And the royal wedding was going to be a pretty big thing on Twitter. Connecting a food brand to the royal wedding was a unique move, and Magnum had to prove it was relevant and engaging for Twitter users. Starting early in the morning, Magnum asked followers what they thought of the attendees as they arrived, discussed guesses for who had designed Catherine Middletons dress and retweeted Twitter users observations about the wedding. Additionally, the brand posted links to the Magnum website, Facebook page and the livestream of the wedding. To expand its reach and continue to gain new followers, the company subsequently purchased a promoted account, which highlighted @MagnumIceCream in a list of Who to Follow on Twitter. Results Magnum received 89 million impressions on April 29 that were related to the #RoyalWedding hashtag. The promoted trend ad had a 6% engagement rate and Magnum saw 83,000 clicks on the links it posted, more than 1,000 retweets and 270 replies, mentions or direct messages. Magnum planned to continue to use the Promoted Account program through July 2011. Magnums account, though only a few months old, is also already one of Unilevers biggest Twitter communities. Since the account launched in March, Magnum has gained more than 34,000 followers.
Background To promote the brand through its focus on indulgence, Unilever wanted to associate Magnum with the topics and events that its target audience enjoys, such as fashion, technology and pop culture. Were trying to promote it as a lifestyle brand, said Mike Hurley, senior brand manager for Magnum in the US, in a June 2011 interview with eMarketer. Were going after a consumer target of women in their 20s or 30s who are into pop culture, are fashion-forward, and are really tech-savvy. Magnum was first introduced in the US at an event at the Tribeca Film Festival on April 21, where the company showcased videos and ads directed by fashion designer Karl Lagerfeld and featuring actress Rachel Bilson. Objectives Unilever wanted to gain followers on Twitter who were in the target audience for Magnum and encourage them to share content and information about the brand. This meant finding a way to reach that audience on a busy site like Twitter. Obviously, were trying to make sales and we need to do advertising, but we want to do it in a way thats unobtrusive and organic, Hurley said. Part of the draw of advertising on Twitter is that the ads are more like the overall content and consumers are often more willing to engage. On the flip side, Magnum had to break through the noise on the site and offer relevant content for its audience.
12
Key Takeaways Magnum was able to use Twitters Promoted Products to build up a community of its target audience, who identified interests in line with the companys For Pleasure Seekers slogan and interacted with the company on Twitter about the product and key touchpoints such as fashion, celebrity and technology. Linking with the royal wedding was a risky step for a product with little brand awareness in the US, but by engaging in conversation and not just latching onto a popular hashtag, it enabled Magnum to reach its target audience and tie the brand to a high-class lifestyle event. Something like the Super Bowl may cause an equal amount of activity on Twitter [as the royal wedding], but that isnt where our consumer is, Hurley said. Next Steps Magnum is looking for pleasure seeker events, such as New York Fashion Week, to leverage on Twitter in the future.
Whats Next
Promoted products are only a first step. While marketers are testing these ad offerings, Twitter is also looking at ways to scale its advertising, leverage its user data and allow for more innovative uses of the site.
To start, Twitter has publicly confirmed that it plans to release a self-serve ad platform in 2011 to supplement its current Promoted Products opportunities. This new service will open up Twitter to smaller marketers that may not have the budget of a RadioShack or a Unilever. The self-serve model might make it a little more nimble and intuitive as you do a campaign, RadioShacks Parker said, noting that the company will try the self-serve platform. It takes a lot of energy to do a Promoted Trend campaign right, not only in terms of resources, but also the investments you make and having a staff in place. But something thats accessible to a larger audience might be something that we could look into for smaller campaigns. CMTs Chris Nelson told eMarketer that he suspects the selfserve platform will offer a different way to get smaller brands and companies advertising on the site, but it will still be similar to Promoted Products. Currently, to run a Twitter ad campaign, you have to get an insertion order through a Twitter representative, he explained. I believe what is launching will be very similar to whats already available to people who have done ad campaigns through Twitter representatives, but where you can go in, create an account, connect a credit card and just start running ads. No matter what details emerge about the self-serve platform, it will open up the funnel for Twitter significantly and expose their ad platform to hundreds of thousands of potential customers who will start to test and use it regularly, said Meteor Solutions Ben Straley. Additionally, on July 28, 2011, Twitter introduced a feature that allows companies to purchase promoted tweets that show up in their followers feeds, enabling marketers to target specific Twitter users who have already expressed an interest in the company or brand. In an interview with eMarketer, Bain explained that these ads will appear at the top of users timelines when they sign on to Twitter, and then will gradually move down as more tweets appear above it in the timeline. Launch advertisers include HBO, Nike, Red Bull and Dell, as well as charities. This new targeting not only makes Twitter ads more relevant to users but also helps marketers reach their current followers, particularly those who dont log in on a regular basis or dont actively follow that brands timeline.
Key Takeaways CMT, ZUJI Australia, RadioShack and Unilevers Magnum Ice Cream all tackled Twitter advertising in different waysand the companies reported success with their campaigns. They demonstrated how a Twitter ad buy can enhance a companys larger marketing program, work to connect with fans wherever they are, spread brand awareness and even connect a brand to a specific topic of conversation. These brands saw increases in followers, mentions and retweets, and engaged consumers on Twitter. But there is still a gap when it comes to connecting this social media engagement with sales, ratings and other solid results. This will be the next evolution for marketers. As Twitter grows its ad platform, companies will work to connect this outreach and advertising to business results.
13
Developments like the release of a self-serve platform and the increased interest in Promoted Products alone would make 2011 a big year for Twitter. But there is still nearly half a year left and the social network has several options for new developments in advertising:
As Twitter
Matt Britton
Co-founder and CEO
Mr. Youth
becomes more developed in different countries and establishes sales teams internationally, there are opportunities for country-specific ad platforms. the June Conversational Marketing Summit, Bain said, You are what you tweet. Twitter can tap into data about what users tweet about, whom they follow and what content they retweet to determine interest targeting. expands its platform into photos and videos and users get comfortable with these new developments, it will be a natural progression for Twitter to allow advertisers to participate as well.
At
What Twitter can really offer is data and insights into consumers. Facebook is very privacy-sensitive and doesnt allow you access to that information, so 90% of what consumers are saying about brands on the web is coming from Twitter. If I were Twitter, I would shift my focus to helping brands directly understand that data, and not necessarily opening it up to third-party research companies. Thats a massive opportunity for Twitterto basically reinvent market research.
Chris Nelson
Director of Social Media
CMT
As Twitter
The next step for us is to move down the path in terms of scalable units, so that our units scale as our user base scales.
Adam Bain, president of global revenue at Twitter, in a May 2011 interview with eMarketer.
Id love to see more targeting elements. Id like to have a good picture of whats going on with our paid campaigns and how were reaching people and where were most effective. If I got 4,000 followers out of a campaign, where did they come from? Was it because I targeted Taylor Swift or because I targeted country music? Can I drill down and figure out if those followers are male or female and what age bracket they fall into? Where I am hitting people most effectively?
Ben Straley
CEO and Co-founder
Meteor Solutions
Q&A: What do you want Twitter to offer next with its ad products? Marketers are becoming savvier when it comes to leveraging Twitter and its advertising platform, and have their own wish lists for the social network.
Adrian Parker
Social Media Director
RadioShack
One thing that would be interesting is different formats of the promoted products that might be more effective and more appreciated, both by the advertisers as well as the people who see the adssomething such as photos or videos. You can certainly go overboard, but its hard for brands to pack a lot of relevant content or information into 140 characters. Key Takeaways There are many different directions Twitter can take its advertising platform, but mostly, marketers want data. Twitter has a unique opportunity to capitalize on its vast data streamand help marketers along the way. Twitter advertising will grow, whether that means incorporating more targeted ads, expanding internationally, introducing a retail or ecommerce experience, or simply honing its Promoted Products and self-serve platform. And marketers will follow the site, and continue to advertise there, as it matures.
People use Twitter all the time to talk about where, when, how and why they shop. As a retailer, I would love to see a shopping tool or engine that allows me to directly incentivize my fans or followers in a customizable way, with a coupon offer or promotional opportunity. A great addition to the Twitter platform would be something like a plug-and-play retail suite that would be used to engage with followers.
14
Conclusions
Twitter advertising will mature. Little more than a year ago, the company introduced Promoted Tweets, Trends and Accounts, and this year is planning to debut a self-serve ad platform. Twitter is considering other ways to incorporate ads into the user site experience. As more campaigns both good examples, such as the case studies mentioned, and cautionary tales, such as the McDonalds Smoothie campaignplay out in the public eye, advertisers will continue to incorporate Twitters ad products. Twitter ads offer marketers a way to balance strategic and brand objectives. Twitter ads offer marketers real-time, flexible engagement, have a similar look and feel to traditional content on the site and can be a way to enhance online buzz about an already popular topic, product or company. The flexibility of the platforms means marketers can balance goals of gaining new followers and achieving high ad engagement rates with strategic objectives that can be tied back to the business, such as building better relationships with consumers. Evolving platforms require openness to testing. With a growing ad platform such as Twitter, a willingness to experiment and be flexible is essential for marketers. RadioShack has purchased six promoted trends from Twitter and is still gleaning insights from its latest campaign. CMT tested how it would use promoted tweets prior to a major event, and ZUJI Australia is taking a long-term approach to see how Twitter ads work for the company. Twitter advertising is a new and constantly changing arena, one that requires a mix of focused strategy and flexibility.
Endnotes
Endnote numbers correspond to the unique six-digit identifier in the lower left corner of each chart. The charts from the report are repeated before their respective endnotes.
128562
Comparative Estimates: US Twitter Users, 2009-2013 % of internet users
2009 eMarketer, Feb 2011 (1) Pew Internet & American Life Project, June 2011 (2) Arbitron and Edison Research, May 2011 (3) ExactTarget, July 2010 (4) BIGresearch, Sep 2010 (5) 7.5% 2.0% 2010 9.0% 8.0% 7.0% 7.0% 6.5% 2011 11.0% 13.0% 8.0% 2012 12.5% 2013 14.0% -
Note: (1) ages 18+ who access their Twitter account via any device at least once per month; (2) ages 18+; (3) ages 12+ who have ever used Twitter; (4) ages 15+ who use Twitter daily; (5) ages 18+ who regularly use Twitter Source: eMarketer, Feb 2011; various, as noted, 2010 & 2011
Citation: BIGresearch, SIMM16: Hispanics, African Americans and Asians More Digital-Savvy than Caucasians, Sep 27, 2010; Edison Research and Arbitron, The Social Habit II: The Edison Research/Arbitron Internet and Multimedia Study 2011, May 29, 2011; ExactTarget, Subscribers, Fans and Followers: The Social Profile, provided to eMarketer, July 13, 2010; Pew Internet & American Life Project, Twitter Update 2011, June 1, 2011 129150
Twitter Snapshot
500,000 600 80% 80% 40% 3%-5% <$10 (1)
129150
accounts created daily advertisers currently supported by Twitter vs. 150 advertisers at the end of 2010 of advertisers renew with Twitter of engagement is people clicking on a tweet, while 20% is a retweet or @mentions or @replies of users follow at least one brand engagement for Promoted Tweets or up to 7%-10% when you combine Promoted Tweets and Trends is the average cost per follower for Promoted Accounts
www.eMarketer.com
Source: Twitter and (1) ClickZ compiled by eMarketer, 2011
Citation: Twitter as cited in company blog, March 21, 2011; Twitter presentation at All Things Digital D9 conference, June 2011; Twitter as cited by CNNMoney, June 7, 2011; Twitter as cited by mediabistro.com, June 7, 2011; Adam Bain presentation at Federated Medias Conversational Marketing Summit on June 6, 2011; ClickZ, June 8, 2011
15

Twitter Advertising-Four Marketers Test The New Ad Platform

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Twitter Advertising-Four Marketers Test The New Ad Platform

Uploaded by

Copyright:

Available Formats

July 2011

Source: Twitter presentation at All Things Digital D9 conference, June 2011

Copyright 2011 eMarketer, Inc. All rights reserved.

The eMarketer View