Twitter is finally letting us all know at least one way that they plan to make money, to literally no one’s surprise it will be through ads that Twitter calls “Promoted Tweets” (PTs), in the other words, Twitter has launched promoted tweets, which means brands can now purchase CPM based ads to promote these popular tweets at the top of a Twitter search term – even in categories they aren’t well known in.
According to The New York Time:
“The idea behind Promoted Tweets is that we want to enhance the communications that companies are already having with customers on Twitter,” said Dick Costolo, Twitter’s chief operating officer.
The advertising program, which Twitter calls Promoted Tweets, will show up when Twitter users search for keywords that the advertisers have bought to link to their ads. Later, Twitter plans to show promoted posts in the stream of Twitter posts, based on how relevant they might be to a particular user.
The ads will let businesses insert themselves into the stream of real-time conversation on Twitter to ensure their posts do not get buried in the flow.
In regarding to how these ads will work, it said:
When a Twitter user searches for a word an advertiser bought, the promoted message will show up at the top of the results, even if it was written much earlier. The posts say they are promoted by the company in small type, and when someone rolls over a promoted post with a cursor, it turns yellow.
Twitter will measure what it calls resonance, which takes into account nine factors, including the number of people who saw the post, the number of people who replied to it or passed it on to their followers, and the number of people who clicked on links.
If a post does not reach a certain resonance score, Twitter will no longer show it as a promoted post. That means that the company will not have to pay for it, and users will not see ads they do not find useful, Dick Costolo, Twitter’s Chief Operating Officer said.
In the other words, Tweets that perform well among the user base will receive a high engagement rating called resonance. This is just the phase one for Twitter, it expects an ecosystem to emerge that combines conversational marketing and traditional advertising agencies.
To help you understand what it means to the industry and fight through the clutter, Jeremiah from The Altimeter Group has worked out a matrix towards what twitter’s resonate means and what its promoted tweets business model means to the ecosystem. I always love the matrices that they put together, it really give you a great overview of the impacts.
The below matrix has several implications to the ecosystem as a whole, they have broken down the impacts to the various players in this matrix:
For Resonation, Brands Must Pay Closer Attention To Users – This Isn’t Traditional Spray And Pray. Power continues to be in the hands of the users, however brands that pay attention to why tweets resonate will have a leg up. In regarding to how you should approach this new space, Jeremiah has highlighted four points in which you should pay attention to:
* Change your mindset, as organic and paid merge: This is a combination of organic and paid ads, you’ll need skills from both worlds to be successful. Direct marketers should educate social marketers, and social marketers should explain how resonation occurs in the conversational web. Remember, this gives top tweets staying power beyond the constant stream of chatter. In the end, remember that users have power over which advertising inventory will be created, chosen, and allowed to stay as a promoted tweet.
* Remember Twitter users have power over which promoted Tweets will work: Remember that users they get to choose which tweets can be put into the advertising inventory as their interaction will self select which tweets can become promoted. Secondly, promoted tweets that don’t yield community engagement will also fall off the stream. is that in the real time resonance world users have a lot more power. Brands must analyze what works for users first before promoting tweets.
* Then, carefully pick tweets to be promoted by analyzing the conversation: First, monitor which tweets are already resonating with your brand, take note of what is causing it to resonate and in what context. Secondly, recognize that these tweets should have long term impact, not a daily special as the tweet is promoted, users will interact with it, forcing it into a viral loop. For best results, experiment with promoting tweets from your customers –not just those that you create.
* Recognize that ‘Resonance’ is the page rank of microblogging: Advertising agencies and social marketing agencies will come out of woodwork with “resonance solutions”, yet most will do it wrong. Instead, look for a sophisticated partner that knows the value of social conversational marketing to create an inventory and the long term experience of an advertising agency. Expect resonation to also cascade to other social networks like Facebook and even community platforms and content management systems to derive what content should surface. Twitter has made nods to new dashboards to appear, expect your agency partners to align around resonation as the new ROI … Continuing read the entire article