Twitter Announces New Advertising Platform
Friday, April 16th, 2010
April 19, 2010 – Red Bricks Media, San Francisco- This week Twitter announced its new advertising platform, Promoted Tweets, which is officially still in beta. As the beneficiary of massive traffic growth, it seems that Twitter has chosen this moment to introduce a monetization strategy through advertising.
The news was broken by an article in The New York Times, and bloggers such as John Battelle have been following this story closely. Media people everywhere are excited about this product if only because of the opportunity presented by Twitter’s impressive user base—which appears on track to include … everyone.
There are two successful cases for Twitter’s advertising play: Google’s AdWords and AdSense programs and Facebook’s performance advertising service. While repeating Google’s magic advertising success seems unlikely, Facebook has been able to generate a significant revenue stream in just under a year. The blog Inside Facebook estimates that performance ads will account for over half of the network’s estimated $1B in sales for 2010.
So what are Promoted Tweets? Promoted Tweets are ads that brands can buy at the top of Twitter search results, just like AdWords places text ads on top of Google search results. Advertisers will be able to buy these ads via an auction model. Whoever is willing to pay the most per thousand viewers gets priority. Depending on how many people view and click on the Promoted Tweet, it receives a “resonance” score that predicts how frequently it will appear in the future. Resonance is calculated using nine variables such as viewers, click through, retweets etc. The greater the user engagement with a Promoted Tweet—and thus its “resonance”—the more likely it is to appear. Like Google’s Quality Score, resonance is intended to keep ads relevant and positive.
The marketing value of Promoted Tweets remains to be seen, but there are valid reasons for the initial excitement:
- Promoted Tweets Rise Above the Fray
A host of marketers, including some Red Bricks Media clients, communicate with their audiences via Twitter. However, Twitter’s egalitarian publishing model means that most subscribers receive a cacophonous flood of tweets all day, and only a minority of these is interesting. For brands that tweet, many posts have only fleeting value. Often they go unseen amongst all the other tweets in a user’s stream. Promoted Tweets allow brands to hold and maintain top position, just like AdWords or Yahoo Search Marketing ads do.
- Promoted Tweets Are the Spark that Lights the Fire
We believe that good Twitter strategy is critical to a complete social media program.Yet, a significant base of Twitter subscribers is as difficult to grow as a house email list or a Facebook fan base. Twitter subscribers can wither or flourish slowly over time or like wildfire. But they behave unpredictably in any case. Promoted Tweets give brands a launching pad from which to ignite an active subscriber community, although at a cost.
- Promoted Tweets May Provide Massive Reach
Because Twitter is nearly ubiquitous on the Web, Promoted Tweets create an avenue to reach a huge number of people. That scale reminds us of Google, where it’s possible to message to almost everyone interested in almost any subject, such as shopping, finding a vendor, or researching life choices. Almost everyone uses Twitter to listen to the pulse of current happenings: events, entertainment, news, product launches, and so on. Imagine being able to message reliably to all those people.
When Should Brands Consider Promoted Tweets?
Promoted Tweets will provide an opportunity to brands to engage with any topical, trending subject on the Web. That broad condition applies equally to consumer and B2B marketers. Here is a short list of marketing objectives we believe Promoted Tweets could accomplish:
- Build New Channels. Promoted Tweets would be a great way to publish promotions, contests, or sweepstakes, earning new followers in the process. As we mentioned, creating a Twitter subscriber group provides low cost, evergreen, loyalty brand communications for the future.
- Drive Traffic. Similar to StumbleUpon, Promoted Tweets will allow online publishers to advertise content specifically to interested audiences.
- Increase Awareness. We’ve already seen how advertising on search results increases brand awareness for qualified groups. With Promoted Tweets, brands will be able to introduce themselves, at scale, to people interested in their offerings.
- Manage Crises. During crisis, customers and other stakeholders love to tweet each other with opinions and pronouncements. With Promoted Tweets, brands can offer their side of the story authentically, sincerely and instantaneously.
- Manage Launches. Product launches generate buzz on Twitter. Promoted Tweets allow advertisers to build and capture that buzz while directing members to relevant links. This goal could apply to new products, software and entertainment such as books, movies, or plays. Imagine how James Cameron could have used Promoted Tweets to message to Avatar fans and detractors.
Scale, relevance and authenticity are equal ingredients in Promoted Tweets possible success. We await this product anxiously on behalf of our clients and their customers. Happy Tweeting!

















