Two-year-old MTailor has garnered millions in sales for its custom-made shirts, all via its app.
The social network moves from a pay-per-engagement model to a system that lets a marketer set a goal and pay when the campaign meets that objective. The shift puts Twitter’s fee structure more in line with the way Facebook and other social networks charge advertisers.
Twitter Inc. is changing the way marketers pay for ads in its latest bid to garner a larger share of marketers’ advertising dollars.
The social network says it is moving from its current pay-per-engagement model to a system that lets an advertiser set a goal and pay when the campaign meets that objective. For example, a retailer can select as his goal that he wants consumers to download his app or he could select that he wants users to click through an ad to the Labor Day sale page on his web site. He would then pay only when a shopper downloads the app or clicks through to his web site.
The social network also redesigned its ad-creation platform. The system now asks the marketer to select his goal and then, based on that selection, recommends an ad unit.
“Our goal is to make it easier and faster for all businesses to succeed on Twitter ads,” writes Christine Lee, Twitter senior product manager, revenue, in a blog post.
The shift puts Twitter’s fee structure more in line with the way Facebook and other social networks charge advertisers. For example, Facebook’s ad-creation tool lets marketers choose to pay for a specific action, such as an app install or a click to a web site.
The move is the latest attempt by Twitter to garner a larger share of marketers’ advertising dollars. While Twitter ad revenue grew 128.9% year over year in the second quarter to $224.4 million, the social network remains in the red.
Marketers are increasingly shifting their ad spending to social networks, according to a new report by market research firm Mintel Group Ltd. U.S. marketers will spend more than $11 billion on social media ads in 2017, almost double the $6.1 billion they spent last year, Mintel predicts.
“Social advertising spend is on the rise and shows no sign of slowing down,” says Mintel technology analyst Bryant Harland.