CTRs Higher In Search, Targeted Ads

by Gavin O'Malley, Feb 7, 2013, 5:07 PM

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As far as Twitter advertising goes, Promoted Tweets that appear in response to user search queries are considerably more effective than less targeted Promoted Tweets.
 
That’s according to new data from TBG Digital, which buys Promoted Tweets on the micro-blogging platform.

It found that click-through rates for those in search were 88% higher than those in Timeline, while tweets in Timeline had a 29% lower cost per engagement rate than Tweets in search.
 
“These findings show that Twitter users are very engaged when they are searching for something. However, it’s worth noting that search volume is limited, unless you focus on key times -- for example, around big TV shows and live sporting events,” said Simon Mansell, CEO at TBG Digital.
 
“There is a lot more volume in the timeline -- response rates are slightly lower, but still very high, as Twitter allows you to target based on the interest graph, i.e., People interested in Golf,” Mansell added.
 
What the social media specialist does not disclose are ad costs, or the actual click-through rate of either form of Promoted Tweets. What is revealing, however, is that Promoted Tweets are sold on a cost-per-engagement basis, according to TBG. Advertisers only pay Twitter when users reply to, click, or otherwise engage with a tweet.
 
“Promoted Tweets are offered on a Cost-per-Engagement … basis, which means that advertisers only pay when a user takes a specific action: replies to, clicks or favorites the Promoted Tweet,” according to TBG.
 
For its research, TBG said it measured 572 billion impressions in nearly 200 countries from the first quarter of 2011 through the fourth quarter of 2012.
 
Twitter advertising is officially big business. In fact, the company’s worldwide ad revenue is expected to reach $807 million by 2014, eMarketer recently predicted.
 
Separately, last quarter’s Global Facebook Advertising Report from TBG showed large reductions in average cost-per-click rates on the social network -- dropping by 40% stateside.
 
This quarter, TBG continued to see a decrease in ad costs in the five major countries analyzed where the average CPC has been reduced by 24%. In particular, the United States saw a 37% decrease, while Canada saw an 11% drop.
 
In last quarter’s report, TBG noted that advertisers were finding lower CPC costs in Facebook’s News Feed, especially with the “Desktop + Mobile News Feed” placement.
 
The cheaper cost-per-click values seemed to be the result of targeting both placements together opened up more inventory with less competition, according to TBG.
 
In this quarter, the company is seeing lower CPCs for all countries analyzed, which it suggests is connected to the adoption of ads targeted to “Desktop + Mobile News Feed.”
 
eMarketer previously estimated that Facebook’s worldwide ad revenues would approach $8 billion by 2014.

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1 comment on "CTRs Higher In Search, Targeted Ads".

1. John Grono from GAP Research
   

   commented on: February 8, 2013 at 8:15 a.m.
   88% higher than what? Quote the actual CTRs.

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