Pay per click or PPC is an established model of internet advertising, advertisers pay a website owner when their ads are clicked. PPC has been widely supported and used by advertisers over the years. But can Twitter’s promoted tweets take PPC’s place in the world of internet of advertising? According to Shannon Suetos in her “Is Twitter Advertising a Threat to PPC?” :
On average, PPC ads generate clicks for approximately 20% of searches (depending on who is reporting the data). Costolo is reporting that Twitter’s initial promoted tweets are being clicked on 5 percent of the time. While that may seem like a small amount of clicks, the fact that Twitter ads are actually content that is imminently shareable is a big differentiator.
Also, the fact that Promoted Tweets are self-fulfilling in their popularity is an important wrinkle. If the ads don’t generate significant clicks and retweets, they are removed from the system, in favor of tweets that are more popular and trigger viral sharing. This is similar to the way Google shows PPC ads in an order based not just on per-click bid, but also click-through rate, relevancy, landing page speed, and other factors.
This commitment by Twitter to ad relevancy should alleviate some of the inevitable blowback from users about the company “selling out” to advertisers. Ads disguised as interesting, shareable content are more like product placement than insufferable promotions.
Early reports on Twitter’s ad model are glowing. “80% of the companies that tried Promoted Tweets did make a second buy. And, as Costolo told AdAge recently, the click-through rates on tweets are 5%, a number that’s much higher than the 1% a standard display ad on the Web sees today,” reports Read Write Web.
Indeed Twitter’s promoted tweets is another option now in terms of advertising because of its millions of users, but can this advertising technique really make PPC a part of advertising’s yesterday?
(Originally posted at MarketingConversation.com)
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