Twitter Inc’s New Ad Format Makes It Easy For Users To Discuss Brands

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Twitter Inc (NASDAQ:TWTR) just released conversational ads, which will push consumers to share their thoughts about the brands they like the most in an easier manner. Presently, the ads are in beta testing.

Twitter says conversational ads are powerful

Twitter’s new ads include a call-to-action button, and on tapping it, a pre-composed tweet with a brand message pops up. Users can either personalize the tweet or post it as it is if they are interested in sharing it with their followers. In a blog post on Tuesday, Twitter stated that for many years, marketers have been using Promoted Tweets with compelling images or videos and campaign hashtags that help drive re-tweets, likes and follows to increase their brand engagement.

“Conversational ads take this a step further by including call-to-action buttons with customizable hashtags that encourage consumer engagement,” the micro-blogging firm said.

Twitter claims the new feature is powerful as the paid posts spawn organic posts, resulting in an opportunity for more earned media that does not require incurring any additional costs. The company began with another brand-friendly test last month showing Promoted Tweets to those website visitors who do not log in.

Cost-effective for advertisers

Based on the example ad formats provided by Twitter, it can be said the new ad format has been designed for advertisers to spark debates related to their brand. The conversational ad format can be considered another way of implementing Influencer Marketing, in which advertisers select people who have large followings to talk about their brands and pay them in return.

Such deals are actually cost-effective for advertisers as they are usually required to pay only for the initial tweet and not for the subsequent re-tweets that the followers of the influencer make. It appears as if Twitter is making a similar pitch with its new ad format.

Twitter’s VP of product, Ameet Ranadive, informed users that the brands which opt to buy Twitter’s conversational ads to drive video views are required to make a payment only when the video is watched by the person who sees the original ad as well. The subsequent views become free if the person clicks on the ad and tweets the branded message and video to their followers.

On Tuesday, Twitter stock closed down 2.97% at $21.89. In 2015, the stock lost over 40%, while in the last one month, it has declined over 12%.

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