Social media firm Twitter depends on revenue from advertising, and therefore tries to attract marketers to use their platform for promoting their goods and services. Keeping this in mind, Twitter recently came up with two new offerings which it hopes will push advertisers to increase their spending.
More flexibility for marketers
Twitter’s new offerings are optimized action bidding and cost per install bidding. These new offerings, which went live yesterday, will allow marketers to make bids based on the number of installs while the payment could be based on either the app clicks or installs.
The first offering, i.e. optimized action bidding, allows for bidding on the number of installs instead of the app click. This helps in the maintenance of scale, and at the same time drives increased “campaign efficiencies,” according to Deepak Rao, product manager on Twitter’s revenue team. However, advertisers will be required to pay for each app click. The other new offering, i.e. cost per install bidding, allow marketers to bid and pay for the app installs.
Twitter in need of ad dollars
Twitter is confident of the success of these two new bidding and payment options. Given access to both these options, advertisers were able to notably lower their expenses during the beta testing phase, Rao noted. “Balancing cost efficiency with volume” is the toughest challenge faced by the marketers, Rao said in a blog post.
Some advertisers are more interested in the installation of their apps rather than just clicks. Making payment based on ‘pay per app click’ is too expensive for them, and does not have much appeal to this group. However, bidding on the basis of installs will help justify their spending, and their need to gain traction with their apps is also fulfilled, Rao said
Twitter is currently going through a rough phase with the stock down and minimal user growth. By offering these two options, Twitter ishoping to present itself to marketers as a more affordable option. The micro-blogging firm is in need of more ad dollars as it depends heavily on ads for revenue. In the last quarter, Twitter reported revenues of $502 million, of which $452 million was attributable to advertising.