Twitter Inc Advertising Share Climbs 52 Percent: Report

Twitter Inc Advertising Share Climbs 52 Percent: Report

Twitter’s usage stats an example of evolving sentiment

The advertising share of Twitter Inc (NYSE:TWTR) climbed to 52 percent this year, according to the new “State of Sponsored Social” report released by IZEA, a pioneer in social sponsorship that provides cloud-based market places connecting brands with content creators such as bloggers, tweeters, or other individuals that pins and post content on behalf of marketers.

According to the report, 52% out of the 10,000 brand marketers polled by IZEA used sponsored tweets in their advertising campaigns this year compared with 47% a year ago, and 39% in 2011.

The popularity of sponsored blog posts among marketers declined from 54% last year to 51%. The report also found that 29% of marketers are now using sponsored pins, the new product from Pinterest.

According to IZEA, quality of content (41.9%), shares (36.5%), and click-through rates (35.2%) are the most important measurement of success for social influence by marketers. Marketers and influencers demonstrated that the interest in display advertising declined (dead or drying) given the increase in social sponsorships. Many influencers (55.7%) said they make more money from content sponsorship than online ads.

Ted Murphy, founder and CEO of IZEA said, “Brand advertisers and editorial are working more closely than ever to develop mutually beneficial, scalable social sponsorship programs that are both high impact for brands and profitable for creators. Increasingly we’re seeing brand marketers dial down their investments in online display, while dialing up a wide variety of sponsored social channels and other native advertising initiatives.”

Many users unaware of FTC rules regarding sponsorship

The report also found that leading influencers are increasingly expecting cash compensation from brands for mentioning their products and services. However, some influencers are not aware about the FTC rules for disclosure when an individual receives compensation in exchange for content. According to IZEA, 38% of influencers have no understanding regarding the FTC guidelines for social sponsorship.

In addition, 26% of influencers said that the amount of time they spent in maintaining their social presence is equivalent to a full-time job.

The stock price of Twitter Inc (NYSE:TWTR) is up by more than 6% to $74.33 per share at the time of this writing around 11:38 in the morning in New York.