-By 451 Heat Guest Blogger Matt Krautstrunk
Twitter’s President of Revenue recently announced some major changes to our favorite micro-blogging site. The New York Ad Age Conference was the home of the announcement that Twitter will now include a dashboard with more detailed analytics and geo-relevant ads. Twitter’s platform is moving towards being a more viable option for advertisers large and small. These tools will allow marketers to define their scope more specifically, tuning their tweets reach and allowing them to see who is paying attention to them.
Geo relevance can be a very lucrative tool for local businesses that are already leveraging social media to engage with people. Adam Bain, President of Revenue for Twitter says, “Geo-relevance for promoted tweets and accounts allows marketers to reach the audience in the right geographic areas. A regional chain that is only available in a certain part of the country can now promote their account or tweets in the right metro areas.” Say for instance if a business wants to advertise for the term “basketball shoes” in Boston you can do this. In Bain’s presentation he stressed the utility of this advertising solution.
Twitter implemented an algorithm to determine where a user falls within their network city based on each user’s tweeting behavior. If a user’s location is New York, and they tweet from Boston, they are pooled in to the Boston location, and eligible for targeted messages.
What it Means To You
Twitter advertising is organic and relevant to its users, with promoted accounts finding deep brand engagement. Bain claims, in the year since they have promoted tweets, engagement has hovered around 3 to 5 percent. In comparison to many advertising channels this is a great feedback rate. Having 3 to 5% of people seeing your promoted tweet and retweeting, replying or favoriting it, is really promising for marketing engagement.
Currently, if you are in one of the 210 cities, where geo-targeted Twitter is available, this means you will be able to narrow your scope, and ultimately save money. If you already have an active following on social networks, you should be able to achieve a response rate of higher than 5% from geo-targeted promoted tweets. Applications for geo-targeted tweets range from local retail sales promotions to targeted marketing campaigns.
For small businesses, the price of a promoted tweet can be expensive and relatively unknown as it is based on keyword bids and cost per engagements. It is known however that the price of a promoted trend is around $120,000 per day. Twitter is clearly making a push for small and medium sized local businesses with this announcement. They may have to lower their pricing structure to allow smaller businesses in the ad space.
The key to being successful with geo-targeting is quite simply interacting with your following and creating engaging copy. Produce relationships with your Twitter-ers instead of treating them like they are being marketed too. Bain believes that Twitter is an ad product that rewards marketers for being “good,” not just for being loud. It remains to be seen if Twitter can balance the difficulties in keeping users happy while increasing its revenue streams. This seems like a step in the right direction, and if you think your business can benefit from geo-targeted promoted tweets, you may need to budget your promotion around a product sale or product launch. Like all of your marketing efforts you should strategically plan your efforts, otherwise you are better off with geo targeting on Facebook and Google.
An entrepreneur and writer on all things fresh, Matt Krautstrunk focuses on topics ranging from social media marketing to phone systems for Resource Nation; a service that provides expert advice on everything from SEO to telephone systems purchase decisions.