Up till last year, people were at a loss as to how the social networking giant would bring in the moolah. Twitter in essence is a real-time search engine and the number of people on the service is massive and this sometimes results in an outage because their infrastructure cannot keep up. The service is free and there was no way brands could advertise earlier. Then sometime last year they started ‘Promoted Tweets’ and finally we could see that advertising had a potential on the website.
Twitter’s Chief Revenue Officer, Adam Bain recently spoke at IAB’s Mixx Conference yesterday and shared some of the milestones that the service has reached recently. These milestones all have to do with the advertising aspect of Twitter. According to Bain, the number of advertisers on the platform have reached to an all time high of 1600 and the retention rate is somewhere around 80%. Back in July, CEO Dick Costolo confirmed that the number of Twitter advertisers have risen by 600%. Last year, Twitter had just somewhere around 100 advertisers.
Looking back we can see the reason why the increase in numbers has taken place. March saw Twitter partnering with Paramount Pictures to launch the trailer of their new film SUPER 8. This helped Super 8 to sell 1 million sneek peak tickets and the opening week at the box office exceeded the projected rate by almost 50%. Another example of Twitter helping sales was when fashion line Burberry launched a fashion show on Twitter. This resulted in a 14 percent higher engagement, and saw a 10X lift in brand mentions. Bains points out the engagements on twitter were checked by analysing retweets and clicks on links.
Twitter is a Web 2.0 phenomenon and has played a crucial role in many things like the Egyptian revolution, Obama Campaign, Japan earthquake etc. Astronauts have live-tweeted from space! Not bad for an idea that was conceived from a day long brainstorming session! Twitter will go forward and focus on its advertising angle as this where the money is. According to eMarketer, once Twitter rolls out its self-serve Ad platform its revenues may reach $400 million by 2013.
After garnering 200 million accounts and now 1600 advertisers Twitter is surely polishing itself for a better future? Are you on Twitter?