Marketing / Pureplay

Twitter’s Successful Ad Platform is Getting Pricey

Screen Shot 2012-04-23 at 10.02.29 AM

Twitter’s self serve advertising platform could generate more revenue than initially predicted, but the cost for advertisers is on the rise too.

Twitter‘s self serve ad platform has thus far outperformed the likes of Facebook‘s advertising in terms of popularity and effectiveness. The platform has been so successful that its set to generate more revenue for Twitter than initial projections account for.

According to advertising agency, GroupM, Twitter’s ad platform could generate $300-400 million in revenue – more than eMarketer initial predicted at $260 million. Either way, Twitter will show ongoing growth in this area, following on from ad revenues of $140 million for last year, which was three times 2010′s figures.

However, speculation abounds that Twitter’s ad platform will increase the cost for brands to advertise on it, with a price hike of as much as 137 percent. This will be caused by the continued influx of small and mid-tier organisations acting as new bidders for ad spaces, thus creating “anarchy,” according to GroupM, or the “chaos of bidding inaccuracy.”

“I would equate it to a first-time home buyer who chooses to do it on their own versus worth with an agent,” said Chris Copeland, CEO of GroupM Next, GroupM’s new innovation division. “If you don’t know the comps from around you, if you don’t know the questions to ask or the information to gather, you’re likely to pay a premium.”

For more information on advertising on Twitter and how much is currently costs, read Power Retail’s article on the topic.

How do you determine how much your social media advertising is worth to you? Would you pay top dollar for Twitter ads?

Campbell Phillips

Article by

Campbell currently serves as Editor for Power Retail. He has a background in science communication and a long history in retail. Campbell has a keen interest in emerging technologies and their impact in the world of media and online retail. Campbell is an indoor sports junkie, to the point of playing in a local dodgeball competition once a week, “just for kicks”. Follow Campbell on Twitter, Google+ or connect with him on LinkedIn.

Leave a Reply

  • (Required)

  • (Required but will not be published)