Twitter is becoming one of the most extensive portals for advertising and media agencies, with real time reporting and sponsorship becoming a common trend on the microblogging portal. WPP has finally grabbed a deal with Twitter to mine the hordes of data for possible advertising benefits.
WPP is the largest advertising company in the world and they have been a dominate figure in the advertising industry for more than a decade, but there move to the Internet has been a slow one. The company has not been quick to embrace social networks as an advertising solution and has just started investing in Google, Yahoo, Facebook and now Twitter.
Sir Martin Sorrell has been bitter against the social networks, but in the press release about the Twitter data he said it would be useful for more effective campaigns, enhanced targeting and real-time insight. We can see what he means, Twitter offers personalisation and real-time updates, something traditional advertising media does not.
There are some drawbacks to Twitter and other social networks, the advertising payouts and views. In traditional media, for instance a TV ad, will be watched for longer than a YouTube ad, normally watched for five seconds. Sorrell does seem some problems amounting from this dilemma, but in truth he cannot do anything about it because advertising is getting bigger on the web and smaller on the TV and through newspapers.
WPP seems to be fully embracing the new Twitter deal, announcing new products and services will be coming to better analyse data on Twitter and monetize the audience on the microblogging website. This is in turn better for Twitter who are struggling with ad revenue and need a better business model to compete with sites like YouTube and Facebook.
The big problem with Twitter is the character limit and advertising being very limited. Vine could have been a platform for video advertising, but the six-second limit makes it hard to jam a fifteen second advertisement inside. Twitter is probably looking at different ways to achieve maximum revenue, without disrupting the microblog for users.
Tweets may be the most valuable commodity on Twitter, especially for companies like WPP. The access to users tweets about a specific subject, found through the hashtag, may allow companies to look at different ways of marketing or different features in a product they should implement.
Many food and drink companies use Twitter as a way to question the audience about what new flavours they should try and this valuable qualitative and quantitive data, qualitative through the variety of answers but quantitive through the retweet and favourite system, showing which tweets are liked the most.
In many ways Twitter is the ideal platform for advertisers simply because of the community and we hope WPP see this side of the deal and not the top hashtag ad or promoted tweet as the way for Twitter to go. There can be a lot of money saved and a lot of new customers found simply by reaching out the audience with informative and exciting tweets.