Twitter Inc (NYSE:TWTR) is following Facebook Inc (NASDAQ:FB)’s footsteps by focusing on the small and medium sized business with new results based advertising rates. New services launched by Twitter resembles closely to Facebook, which already offers the options for clicks, likes, apps installs and other features that have tasted the success in alluring the SMBs.

Management need to change focus

However, Twitter is not as successful as Facebook for the mere reason of ad price structure differences, says a report from Fool.com by Adam Levy. Focus of Twitter is different from Facebook as the former describes itself as a “real time information network” whereas Facebook is a social network.

Management at Twitter is doing little to exploit the area, where the company could do well such as it can be a powerful tool for the business connects with customers, believe Levy.  For getting the advertisers flocked on the website, the company needs to focus on its core competencies. Contrary to the Micro-blogging site, Facebook is preferred by the small businesses as it offers the owners the facility to connect with the customers, tell about the business and also engage with the customers. Twitter, on the other hand, offers very less space for any advertiser to talk about business and focuses less on attractive pictures.

In the previous quarter, Twitter had only 4.5 million small business accounts on its network. However, latest ad tools from the company are expected to attract small business and convert them into advertisers.  Although Twitter has not disclosed any specific numbers on its advertising customers but claims that it has an advertiser base of thousands.

Twitter need a Facebook like focus

New pricing structure will hopefully increase the advertiser base of the company. SMBs prefer result based pricing structure more than any other strategy for a simple reason that the option offers them a better view of their projected advertising return before they spend the budget amount into a campaign.

Twitter Inc’s new tool is sure going to convert a greater number of businesses into advertisers, but whether it will be able to increase the number of advertisers on the platform cannot be determined as of now. The success of the tool depends upon the capability of management of how well it can covert the business into advertisers.

During its conference call, the company did not discuss on the strategies it will deploy to connect people. Just adding the ad-pricing options would not be enough for Twitter if it wants to allure advertisers. In the end, author concludes, “If Twitter wants to win more advertisers, it needs to copy more than ad-pricing tools from Facebook; it needs to copy Facebook’s focus on connecting people.”

Tags: