In its revised sales strategy, the social media platform Twitter is seeking to attract lesser-known brands that need direct responses and more clicks. It is a shift from its previous sales strategy, in which Twitter appealed to large marketers.
Who bought more ads in a bid to improve their brand awareness.
According to a release in 2021, the micro-blogging platform generated 85% of its annual revenues from companies seeking brand promotion, with the balance coming from performance ads. As part of its long-term goal, the previous management decided to even out that ratio. It has developed the technology to fulfill its long-term vision.
In today’s latest world news from BNN, the efforts put in by the previous management are beginning to pay rich dividends, though Twitter faced turmoil under Elon Musk, who took it over in October 2022. The Ridge Wallet’s CEO, Sean Frank, said the company is spending more aggressively on digital ads. It has spent a lot of money on digital marketing this year on Twitter to improve sales using ads above brand awareness.
Major brand advertisers stay away from Twitter
Mars Inc., Mondelēz International Inc., Coca-Cola Co., and Best Buy Co., Inc. are some of the major brands that have stopped buying ads on Twitter. It comes against the backdrop of concerns raised about a surge in offensive content after Twitter was taken over by Musk. According to the data collected by Pathmatics, a research firm, these major brands have not purchased any ads on Twitter during January and February 2023.
Cost-conscious marketers get more attention
Twitter is giving more importance to marketers, who are cost-conscious and measure the effectiveness of their ads when several users take action like entering their email addresses or clicking on the ads. As a result, the products of lesser-known brands and the ads of obscure brands are popping up in the feeds of users.
The chief strategy officer of Tinuiti, a marketing agency, said it is just like viewing HSN, but this time on Twitter. A publisher of a free newsletter, 1440 Media LLC, which gathers information from other news publications and aggregates the reports, increased spending on ads on Twitter to six figures every month from nothing earlier, according to Tim Huelskamp, CEO. He was inspired by performance-based advertisers on Twitter. Tim went on to say that the ads for T-shirts costing $20 are appearing more on Twitter than the ads of larger companies.
According to Musk, the micro-blogging platform did not consider the relevance of ads until 3 months ago, and how many products or services you might have purchased off Twitter. The advertisers might have targeted the users of Twitter using variables like areas of interest and location. Musk went on to say that performance- linked ads are more relevant.
In the most recent world news, Mr. Ahene of Tinuiti said Twitter improved the frequency of sponsored tweets and unveiled ads promoting new products in reply threads, though some large companies left the platform. These changes resulted in the slashing of advertising costs on Twitter and the propping up of several lesser-known businesses in the users’ feeds.
Sruti is a storyteller for all travel. She loves to write about everything — from fashion to travel. She is a phenomenal singer, an ardent reader, and dreams to travel the world.