Last year Twitter had announced objective-based campaigns, reports and pricing. However it was in the test mode but now Twitter has made the feature available globally. “Last year, we launched an easier, more effective way for advertisers to create and optimize their ad campaigns, and only pay for the actions that are aligned with their marketing objectives. After seeing strong results in beta, we’re excited to offer objective-based campaigns, reports and pricing to all advertisers globally, starting today,” wrote Christine Lee on Twitter blog.
Called the objective-based campaigns, the program was launched to make it easier for advertisers to create and optimize successful marketing campaigns — and pay only for the actions that are aligned with their marketing objectives. Earlier the beta program had five objectives to be selected but the latest roll out has Video Views as an additional objective.
“When creating a new campaign, you can select from one of six objectives — and our customized workflow will help you choose the best ad format for your goals. You’ll only be charged when a user clicks on a link to your website — all other engagements, like a favorite or a Retweet, are free.”
The selling point for Twitter to advertisers is – “You’ll never pay for actions that aren’t relevant to your goal, ensuring that you’re positioned to drive the highest possible ROI in each of your campaigns.”
Performance measurement of running campaigns are real time. “Our campaign dashboard surfaces the metrics that are most aligned with your objectives, such as the number of link clicks, video views or app installs — and the cost per result,” stated Twitter.
Businesses are seeing positive results. Among the examples cited, eBay with the use of Website Cards featuring compelling images and clear calls to action, was able to drive a 59% quarter-over-quarter decrease in average paid cost per link click.
eBay had the objective to drive high-quality, affordable traffic at scale and it chose to concentrate on Twitter trends – everyone’s go-to source for the latest information. It leveraged the trending topics and tried getting into conversations as they were happening on the platform. “Early brand entrance into these conversations has a positive impact on our bottom line, and this campaign has opened our eyes in a data-based way to Twitter’s ability to drive traffic at scale,” said Ninad Wagle, Social Media Manager, eBay.
Gupta Media, a digital media agency that represents hundreds of record labels, artists and event promoters across the music industry is another example that has achieved success from objective-based campaigns. The agency’s main objective is to be able to drive album and ticket sales on iTunes, Amazon and event ticketing sites.
Twitter’s advantage of targeting people at the precise moment when they are becoming aware of a band or artist, say during a big televised event like The GRAMMYs has really helped the agency. The agency has been using the website clicks or conversions campaign objective to turn real-time conversations into cost-efficient conversions. By doing so across genres Gupta Media was able to deliver a 24% conversion rate on Twitter — double the average conversion rate compared to other advertising platforms. For artists like Taylor Swift, they were able to produce cost per link clicks as low as $0.11.
Advertisers are also happy with the Twitter’s objective-based pricing since it has reduced costs while increasing efficiencies. “With Twitter’s objective-based pricing, we only pay for actions that we care about. This has driven down costs and increased efficiencies, especially when driving shoppers to the website to take an action like filling out a request for quote form,” informed Raunak Munot, Director, Social Strategy at Mindshare (GroupM), the agency that managed Land Rover’s campaign.
Twitter had a lackluster Q1 2015 revenue and user growth. The company reported revenue of $436 million, an increase of 74 percent on a year-over-year basis. That number missed the company’s own guidance, as well as street estimates that the company would report $456.8 million. Twitter might be hoping such initiatives like a global roll out of the objective based campaigns would strengthen advertisers belief on the platform.