Twitter Unveils Plans to Draw Money From Ads

NY Times Article

To be fair and give proper credit. Laurie Sullivan of Media Post grabbed this story a day earlier:

Media Post Article

I have in the past discussed options for Twitter should they continue the Ad Supported Business Model vs what I recommended which was Paid Subscription/License the Technology Model. I did some research on Twitter before it hooked me as a Professional Networking tool that has sincerely been invaluable. But for Advertising and Promoting by Brands it has major challenges which I spouted about here: Link

Basically since so many Tweets get unseen how does Twitter monetize with Advertising. Especially challenging since 3rd party platforms like Tweetdeck take away the home page space.
Some areas of thought were based on value to the Brands and value to the Consumer. And when will Twitter know I am viewing the stream.

First viewing really can only be guessed at when one logs in (but I am always logged in via Tweet Deck), tweets (but maybe not with mobile, maybe you send the tweet without viewing the stream), or searching for something.

So lets use the Tweet. If I mention a product type or Brand wouldn’t competitors wish to send me an offer right then? I always use Coke-Pepsi. If I mention Coke, Pepsi wants to send me a coupon. But is that of value to me or the Brand? Depends. If I am at McDonalds and mention I had a Diet Coke with my burger I am not about to make a buying decision. So sending me an offer isn’t relevant, especially since I had no choice in brands at McDonalds. But if I am at a store and Tweet ‘debating on whether to buy Coke or Pepsi’ that is different. But Twitter can not do such conceptualization. And is the highest bidder really the best for the consumer? Sometimes, but not always. I might miss out on something better for me who didn’t have the money for the key word bidding. No different than Google/Bing, but usually they give you more than one paid result.

Now lets explore what Twitter is using: search terms. Who searches and for what? Brands search when they ‘listen’ to the live conversations/posts about their brand, products, and competition. It is possible searching for a term will cause themselves to be charged for an advertisement by Twitter. Of course they could also cause their competitor to be charged, similar to clicking on a competitors banner ad online over and over.

But what do consumers search for most? In my observances really only two specific things in an ongoing basis, which are new products and news. Movies are the perfect example. The Friday Iron Man 2 comes out they will search for reviews. So a Brand seeking to advertise to that demographic might want to bid on the Iron Man 2 key words (if that is allowable by Twitter). The other is real news, especially disasters or political upheaval. So bidding on Haiti Earthquake would of been a worthy choice. But you need to be quick since disasters are never planned in advance!

As with all Advertising the key is getting your ad seen. And Twitter just like Facebook have immense challenges due to the massive clutter of the live feed, and how many hours people spend logged in not looking at the screen. This post took 15 minutes to type while tweets are flying on my Tweetdeck screen, tweets I will never see. And there is the Brand safety issue. I recently showed a Tweet that showed up in the #P2 (progressive) and #tcot (conservative) politics hashtags that was very vile. Brands have to be careful because certain hashtags have content no brand wants to be associated with.

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About chiefalien

Howie Goldfarb with 20 years of Sales and Marketing experience founded Blue Star Strategic Marketing in central Vermont to serve as the objective and strategic adviser of brands to help them grow and thrive. His Degree in Finance and 14 years of B2B sales to Fortune 500 companies gives him a CFO’s view of marketing. Thus bringing a dose of reality to the confusing world of jargon, spin, and hype. Also playfully known as the Chief Alien of Blue Star Strategic, Howie relishes his role as an industry outsider. A native New Yorker and former Angelino, he currently lives in the Green Mountains of Vermont and is still seeking his first moose sighting. His passions are living life, art, music, the outdoors, he tries to cook and loves the Vermont Fresh Network – local sustainability initiatives like farm to table and buying local.
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