Home  › Social › Social Media

Twitter: 12% of Q1 Revenue Came From Auto Advertisers

  |  June 8, 2011   |  Comments

Promoted accounts fetched from $10 to $70 per follower in the automotive vertical.

Since rolling out its first advertiser product in April 2010, Twitter has found particular success in the automotive sector, and hopes to extend that appeal to retail marketers next.

Speaking with ClickZ News this week, Twitter's Chief Revenue Officer Adam Bain, said 12 percent of its revenues came solely from auto marketers during the first three months of the year, thanks in part to strong growth in that industry, as well as the popularity of Twitter's newer paid placements, such as its Promoted Accounts offering.

"Promoted accounts are one of the best hidden secrets of the platform. Unlike trends, they're based on targeting. If the marketer understands the value of a certain type of customer, they can bid really effectively," Bain said. "Each marketer knows how much a follower is worth to them, and once they've acquired that follower, brands can keep marketing to them," he continued, adding that between 20 and 40 percent of Twitter users follow at least one brand.

Promoted accounts are currently sold on an auction-based model, with advertisers paying on a cost-per-follower basis to target certain keywords linked with data from users' accounts, such as who they follow. Automotive advertisers have been paying as much as $70 per follower, though the average price ranges from $10 to $40 for that vertical, Bain revealed. The overall average for all advertisers is lower still, however, at under $10.

Perhaps as a result of the success of promoted accounts, Twitter has recently tweaked the design of its website, shifting those placements further up the page above the trending topics list. As Bain explained there are only 365 days in the year for promoted trending topics, but numerous brands can run campaigns simultaneously as promoted accounts.

Besides the automotive sector, Twitter's ad products are also seeing strength in "other areas you wouldn't expect," Bain continued, highlighting the finance category as an example, as well as the entertainment space as a more obvious candidate.

From both a sales and product perspective, though, Bain stressed that the company is wary of entering new areas blindly, and that it's currently "moving strategically" into new categories. It's currently refusing to accept ads from political advertisers, for example, but is focusing more of its efforts on the retail space.

"There are some things we want to do to really make ourselves more valuable to retailers," Bain said, highlighting the need for the company's ad products to better demonstrate and track conversions. "We started by saying we would show engagement… but one of the things we want to do now is to connect the dots better on the conversion side," he added.

That strategy appears to be working, judging by the company's advertiser retention rates. Bain said 80 percent of its clients to date are repeat customers, perhaps evidencing the appeal of the company's ad offerings and pricing models.

Recent advertisers in the automotive category have included Nissan, Volkswagen, and Mercedes.

Tags:

ClickZ Live Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ABOUT THE AUTHOR

Jack Marshall

Jack Marshall was a staff writer and stats editor for ClickZ News from 2007 until August 2011. 

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Social newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.

Resources

Jobs

    • SEO Specialist
      SEO Specialist (HeBS Digital) - NEW YORK                             ...
    • GREAT Campaign Project Coordinator
      GREAT Campaign Project Coordinator (British Consulate-General, New York) - New YorkThe GREAT Britain Campaign is seeking an energetic and creative...
    • Paid Search Senior Account Manager
      Paid Search Senior Account Manager (Hanapin Marketing) - BloomingtonHanapin Marketing is hiring a strategic Paid Search Senior Account Manager...