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Twitter 'promoted tweets' program gains focus, reduces price

updated 08:21 pm EDT, Thu August 30, 2012

New tool mines users tweets, breaks interests into 350 categories

A new tool has been introduced by Twitter that allows ads to be focused on the people who discuss relevant topics to the products for sale, based on past tweets and user content. Twitter is also making the "promoted tweets" connectable to specific accounts that may have followers likely to have an interest in the subject of a marketing message. Additionally, the price for a Twitter advertising campaign has been cut to the bone, with a reduction in the auction bid increment for daily placement down to one cent.

Using the new tool, marketers will be able to select from 350 categories to hone advertising campaigns. "By targeting people's topical interests, you will be able to connect with a greater number of users and deliver tailored messages to people who are more likely to engage with your Tweets," Kevin Weil, Twitter Director of Project Management said in a blog post today. Initial beta testing of the feature is underway with a select group of marketers.

Along with the new ads, Twitter is dropping the minimum price advertisers can big for a campaign to one cent per tweet, down from 50 cents. The minimum bid increment decrease is hoped to encourange more businesses and marketers to advertise on the microblogging service.

According to research firm eMarketer, Twitter stands to generate $260 million in advertising revenue this year. For comparison, Google's revenue will approach $50 billion this year, and Facebook is expected to rack up $5 billion in advertising sales. The move could boost Twitter revenue to $500 million per year, according to the analyst.

by MacNN Staff



  1. SockRolid

    Forum Regular

    Joined: 01-21-10

    Twitter is degenerating into "The New AOL."

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