Twitter Flips Ad Model to Rival Facebook's Structure

Advertisers on Twitter can now create campaigns with specific objectives in mind and pay only when those goals are met

Twitter is moving away from its cost-per-engagement model for ads and putting objectives like app installs, follows and leads front and center. Campaigns on Twitter will now begin with the end goal in mind, enabling advertisers to only pay for specific actions they deem most effective in achieving that objective.

Instead of trying to force a certain ad unit to deliver the results they're after, campaign managers will be directed to the best ad format based on predefined goals. This work happens automatically in Twitter's new objective-based workflow, which also makes it simpler to create ads and customize rich media, the company says.

The shift in Twitter's ad pricing and structure is important, not because it's unique but because much of the industry is already moving in this direction. Page views and clicks with no purpose carry far less meaning for brands than actual conversions or leads.

[Related: Twitter Readies Design Changes As It Unveils New Ad Offerings]

Facebook has been selling ads from an objectives-based approach since October, after it killed off a series of redundant ad products to make it easier for ad managers to set up and track their campaigns.

Advertisers and marketers are always focused on driving business outcomes, so it makes perfect sense for Twitter to do the same. Facebook's momentum of late may not be entirely linked to its refined ad structure, but its fortunes have grown exponentially since last fall and Twitter surely must have noticed.

In flipping the script, Twitter is also taking on most of the risk by essentially guaranteeing that its ads will deliver results up front. When, for any reason, those objectives aren't reached Twitter won't make so much as a penny.

[Related: Has Social Media Become the Wild, Wild West for Marketers?]

"Objective-based campaigns are designed to help you drive the highest possible ROI (return on investment) from your ads," Christine Lee, senior product manager of revenue, writes in a blog post detailing the changes coming to Twitter ads. "Objective-based pricing ensures that you only pay for the results that impact your marketing goals."

Advertisers can choose from various objectives, including tweet engagements, website clicks or conversions, app installs or engagements, followers or leads. A campaign aimed at driving app installs or app engagement will be charged on a cost-per-app-click model while a lead-generation campaign will be charged based on how many users submit their information via Twitter's lead generation card in a promoted tweet. (See video below.)

The new ad campaign framework and pricing structure is now available in beta to small- to medium-sized businesses and API partners globally. Twitter says it also plans to make the service available to managed clients via invite over the coming months.

[Related: Twitter Scores by Moving the Goal Posts]

The change for direct marketing on Twitter comes on the heels of the company's surprisingly strong quarter in which revenue grew 124 percent year-over-year to $312 million, but net losses also jumped 71 percent over the same period to $144.6 million.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Data has the power to build or burn brands

A brand can be severely wounded by use or misuse of any of its assets and you could say data has the greatest power of all to inflict damage.

Lucy Acheson

Head of data strategy and customer experience, LIDA

Totto and your inorganic future

At Cannes Lions this year we’ve been treated to many artificial intelligence (AI) insights. It’s one of the major discourses of our time.

Richard Brett

CEO, opr

Personas of one and the rise of ‘always there’ marketing

I’ve got some bad news. The ‘always on’ marketing approach that many companies have only just fully implemented is already out of date.

Nigel Roberts

Founding partner and strategy lead, Yell

Promotion is difficult. You should be able to do it. Sometimes it turns out bad, and when you turn to professionals, it turns out well - ...

Jordan Samuil

Village Roadshow partners with Lion for pourage rights and promotional partnership

Read more

This is very good news for Australian SMEs as ActiveCampaign is an very powerful marketing automation / email marketing tool that costs a...

Lawrence

SMB marketing automation provider sets up Asia Pac HQ in Sydney

Read more

Thanks for the info! If you are looking for commercial real estate in Mumbai, visit us at Jagaha.com! We have over 20,000 verified proper...

Gizelle

Salesforce ups the Marketing Cloud ante with Datorama acquisition

Read more

Completely agree! For the best commercial properties in Mumbai, visit our website - Jagaha!

Gizelle

Salesforce ups the Marketing Cloud ante with Datorama acquisition

Read more

Carisoprodol is used for treatment of pain.so it has some amount of drug use it carefully . Get its complete usage and prescription from ...

jensons henry

CMO profile: The strategy behind Cash Converters brand and customer experience reboot

Read more

Latest Podcast

More podcasts

Sign in