Twitter has come across an unexpected revenue in automotive ads. Adam Bain, the companies’ Cheif Revenue Officer reveals that 12 percent of the first three months of 2011 revenue was just from this genre.
Bain comments on the advertising strategy, saying “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… “Each marketer knows how much a follower is worth to them, and once they’ve acquired that follower, brands can keep marketing to them,”.
Advertisers spend on a cost-per-follower format to target users, and pay an average of between $10 and $40. Twitter is maintaining its site to maximize benefits for advertisers as well.
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As for what the consumer sees, Twitter is still selective about the types of ads that it will run on the popular site. Bain notes “There are some things we want to do to really make ourselves more valuable to retailers… 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,”.
With an 80 percent retention rate for advertisers, Twitter has to be doing something right. Perhaps that’s why automakers such has Mercedes, Nissan and Volkswagen have chosen to place ads there.
– By: Alexandra Koken