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

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

Like we have been growing in technology since the first industrial revolution and never stopping but when it comes to businesses around t...

Bhooshan Shetty

Predicting the Future: Marketing science or marketing myth?

Read more

Was really informative. Customer retention is very important for companies as retaining customers are simpler compared to making new ones...

Bhooshan Shetty

Gartner survey: CMO spending hit by COVID-19

Read more

Couldn't agree more!The way AI and machine learning as evolved over these years, it has completely changed the look of marketing and cust...

Bhooshan Shetty

Marketing 2030 and the rise of the machines

Read more

JP 54, D2, and D6 EN590,JET A1 AVAILABLE ON FOB DIP AND TEST IN SELLER TANKWe Can supply Aviation Kerosene,Jet fuel (JP 54-A1,5), Diesel ...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

This article gave me a better understanding about content creation. I learned a lot like this website https://a2designlab.com/ also offer...

Ryota Miyagi

How Remedy is using digital marketing and commerce to drive conversion

Read more

Blog Posts

Life beyond the cookie: 5 steps to mapping the future of marketing measurement

​There’s no denying there’s been a whirlwind of response to the imminent demise of the third-party cookie from all parts of the industry. But as we’ve collectively come to better understand the implications, it’s clear this change is giving the digital advertising industry the opportunity to re-think digital marketing to support core industry use cases, while balancing consumer privacy.

Natalie Stanbury

Director of research, IAB Australia

Ensuring post-crisis success

The COVID-19 pandemic has exposed brands’ CX shortcomings and a lack of customer understanding. Given ongoing disruption, customer needs, wants and expectations are continually changing, also causing customers to behave in different ways. Just look at hoarding toilet paper, staple and canned food, medicinal and cleaning products.

Riccardo Pasto

senior analyst, Forrester

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Sign in