Over the course of the past couple of weeks, Facebook has been holding events across the country for small business owners to help show them how they can truly take advantage of and utilize Facebook’s advertising platform. Small businesses are popping up all over the board at an incredible rate, and Facebook wants to help those small businesses see just how powerful their online advertising platform is. Why is this you ask? Small businesses get more customers by using Facebook’s advertising system, and in turn Facebook makes more money. It’s a win-win situation for everyone. However, Facebook isn’t the only social networking site looking to appeal more towards the small business crowd. Twitter has just announced new plans for its own advertising system and fees that have a strong focus on the small business owner.
As it stands right now, Twitters current advertising system isn’t all that customizable. Companies can choose to create sponsored tweets/ads, and Twitter then gets money by how many times users click, favorite, reply or tweet with that sponsored ad. It works, but it’s pretty basic and doesn’t leave much wiggle room for companies and their specific advertising strategies. Within the course of a few months, Twitter will be making some pretty significant changes to their advertising platform on their site. Rather than having businesses pay a flat fee for placing ads on the social networking site, these companies will have a lot more say in just how these ads work. For example, businesses looking to advertise on Twitter will be able to only pay for ads when a user follows them, downloads their app, visits their website, etc. This isn’t really anything new when it comes to social media advertising, as Facebook already has a similar structure implemented with their site. With that said, it’s still promising to see Twitter starting to put more of a focus on their whole advertising platform. The new features and additions will be much more appealing to companies (especially small businesses) and will open the door to more advertisements and more money for Twitter.
Craig Elbert is the Vice President of Marketing for Bonobos Inc. When talking about the new advertising platform for Twitter, Mr. Elbert said that, “As an advertiser there’s a benefit to being able to pay specifically for performance. It’s an attractive option when you can quantify exactly what you’re getting.” Mr. Elbert also said that, “It [Twitter] has been rolling out a lot of new products—many of them, like this one, mimicking what works on the Facebook ad platform. I think updates like this show Twitter is receptive to feedback from advertisers.”
With advertisers already taking a liking to the updated advertisement model for Twitter, it looks like the company could have a real winning move on their hands. When Twitter first introduced advertising for mobile platforms, the company saw an increase in revenue that double up to $312.2 million in quarter two that ended just in June. If the new additions to their advertising turn out to be a success, we could be seeing even more increases in Twitter’s revenue very soon.