After receiving unfavorable first quarter revenue estimates for this year, Twitter is now planning to create a stronger presence in video advertising, as told by Suzanne Vranica and Yoree Koh of the Wall Street Journal in an article titled "Twitter Looks to Video to Increase Advertising Sales." The social media site speculates that part of the reason for the decline is due to top-name advertisers holding back on spending. Many brands have begun to move away from Twitter’s "promoted tweet" advertisements in favor of interactive ads and video ads. Many of these companies have been turning to Facebook to provide video advertisements, which is apparent in the 57% jump in revenue they’ve experienced in the first quarter. With the implementation of muted video ads that appear on user’s timelines and other innovative visual ads in place, Twitter representatives stated that they plan to match their success through acquiring tools that will better target users and oversee performance rates.
Social media ad buying company AdParlor reported that ads on Twitter cost around $4.78 per 1,000 online, which is about 47 cents less than Facebook’s. With digital video ad spending expected to have a healthy increase over the year, now seems like a perfect time for advertising companies and brands to invest in video advertising in social media, whether it be Facebook, Twitter or both.
The author, Bob Ottaway, is President and Founder of Ottaway Digital. Established in 1999, it has been a pioneer in SEO, digital advertising & social media since 2006.