Parks Associates Blog

Wednesday, February 24, 2010

Twitter Decides It’s Time to “Cash In”

With signs of increased social networking ad spend in 2010 along with a solid user base; it’s no surprise Twitter is positioning itself to ‘cash in’ with its soon-to-be launched ad platform. And it’s time…because advertisers are waiting.

Based on Parks Associates survey of top-level media decision-makers, Advertising Outlook: Shifting Dollars, social network advertising will experience a boost in 2010; – 76% state increased ad budgets while 56% project an 11% or more increase over 2009.

Paramount to the success of the monetization strategy is developing a consumer-centric ad approach. Twitter must develop relevant, non-invasive advertising solutions that seamlessly integrate into the social media experience. One way to do this is to probe select Twitter users to determine format preferences (e.g., what delivery solutions make the message seem less like an ad?). Having said that, I don’t suggest Twitter is unaware of the implications of introducing ads. I think Twitter executives will tread lightly as poorly placed ad messages will cause massive user backlash.

While we know brands are biting at the bit to engage Twitter users and followers, the real question is, “Are users ready for Tweet Ads?”

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