Twitter Advertising Costs and Benchmarks by Augustine Fou

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Description of the ad types on Twitter and how Twitter is being used by brands for advertising -- mainly for awareness.

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Twitter Advertising Costs and Benchmarks by Augustine Fou

  1. 1. Augustine Fou- 1 - Twitter Advertising Costs / Benchmarks Dr. Augustine Fou October 2013
  2. 2. Augustine Fou- 2 - Twitter Ad Revenue Source: Twitter SEC Filings
  3. 3. Augustine Fou- 3 - Twitter Revenue vs Net Loss Source: Twitter SEC Filings
  4. 4. Augustine Fou- 4 - Types of Twitter Ads
  5. 5. Augustine Fou- 5 - Promoted Accounts Source: Twitter Costs Cost-per-follow (CPF) Sample: $2-5 CPF Primary Uses • Gain followers • Create awareness
  6. 6. Augustine Fou- 6 - Promoted Tweets Source: Twitter Primary Uses • Sharing content • Amplify message • Offering deals • Building a brand voice • Building awareness Costs • Cost per Engagement (CPE) • Sample: 10s of cents
  7. 7. Augustine Fou- 7 - Promoted Trends Source: Twitter Pricing $200,000/day Primary Uses • Brand building • Generating awareness • Associating brand with a current trend
  8. 8. Augustine Fou- 8 - New Revenue Sources Source: BusinessInsider Oct 2013 • Self ads in international markets • Video ad on Vine • Big Data (data licensing) • Mobile advertising outside Twitter ecosystem • Real-tim bidding outside the twitter ecosystem • TV Ad Targeting • Amplify (Twitter’s current video ad product) • Custom audiences
  9. 9. Augustine Fou- 9 - Twitter vs Facebook CPM Twitter CPM $3.50; Facebook CPM 0.35 Source: BusinessInsider, April 2012
  10. 10. Augustine Fou- 10 - Where Twitter “Fits” 2012 - $107B 2016E - $104B branding performance Television 65% ($70B, 2012) Digital 35% ($37B, 2012) Display (Facebook) 22% Search (Google) 46% Other 32%55% 45% Broadcast Cable Television 58% ($61B, 2016E) Digital 42% ($43B, 2016E) 42% 49% Other 9%51% 49% Broadcast Cable Branding (Facebook) Performance (Google) Mainly for branding and awareness, not as much reach as Facebook
  11. 11. Augustine Fou- 11 - How Brands Use Twitter – For Awareness
  12. 12. Augustine Fou- 12 - According to the SMMU study, just 9% of respondents have used Twitter’s paid services, although another 44% are planning to explore them in the future. Some 17% are apparently unaware that Twitter even offers paid services. Those are lower figures than seen in the Ad Age survey, in which 46.5% of brands marketing on Twitter were also advertising on the platform. Twitter is for Awareness Source: Social Media Marketing University, March 2014
  13. 13. Augustine Fou- 13 - Related Articles Future of Advertising By: Augustine Fou, March 2013 Twitter Usage Stats and Benchmarks By: Augustine Fou, July 2013 Fake Twitter Accounts By: Augustine Fou, August 2013 Twitter vs Facebook CPMs By: Augustine Fou, March 2013 Social Media Marketing Benchmarks By: Augustine Fou, December 2012 Augustine Fou- 13 -
  14. 14. Augustine Fou- 14 - Dr. Augustine Fou – Digital Consigliere “I advise clients on using various digital tactics and integrating their use with other forms of marketing – online and offline.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 @acfou ClickZ Articles: http://bit.ly/augustine-fou-clickz Slideshares: http://bit.ly/augustine-fou-slideshares LinkedIn: http://linkd.in/augustinefou

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