Twitter’s Paid Advertising Boosts ROI on TV Ads

Paid ads on Twitter help boost the efficiency of TV ads when merged with each other. And mobile carriers benefit from it.

A new analysis for Twitter and conducted by analytics firm MarketShare has found that TV advertising will increase its potential with help from Twitter paid advertising.

Though it pored only on new UK mobile subscribers, the study found that mobile carriers paid TV advertising an average of $131 per new customer. Contrarily, mobile carriers that combined TV and Twitter paid advertising paid 35 percent less with an average of $83 per new customer. So the customer acquisition cost for TV advertising dropped substantially when Twitter paid advertising is involved.

If this study is plausible, marketers must have a good grasp on the intricate relationship among multiple marketing media.

“This analysis for Twitter is shedding new light on today’s complex consumer journey and how companies can profit from these insights in an increasingly multi-screen world,” says Jon Vein, cofounder and CEO of MarketShare.

MarketShare analyzed specific touch points from the micro-bloggin platform. It measured the impact of Twitter’s paid products, including promoted tweets, trends, and accounts, to the growth of new subscribers among UK mobile carriers. And it elucidates the role of Twitter to generate mobile subscribers, the role of marketing spend to stimulate Twitter engagement and boost sales, and the impact of Twitter paid advertising on TV ad performance.

MarketShare’s findings showed that Twitter ads increased the ROI of mobile carriers on TV ad spend. Also, Twitter’s paid products increased other business areas for UK mobile carriers, such as a positive response from users on marketing campaigns and branded search volume.

Though it consumed only a small average of 1.5 percent of the total budget, Twitter paid advertising accounted for 9.5 percent of the total contribution of marketing to sales. In contrast to Twitter promotions, online display ads consumed 5.1 percent of the total ad spend budget and contributed 5.5 percent to sales. But ad spend on print was higher at 31.7 percent of the total budget and contributed 34.5 percent to sales.

MarketShare not only measured the impact of Twitter promotions, but it also measured other touch points in the micro-blogging site. The study pored how tweets, retweets, mentions, and so on backed sales growth for UK mobile carriers. It found that a 10 percent growth in positive “share of voice” in Twitter conversations leads to a 0.5 percent sales growth, and a 30 percent boost in positive Twitter conversations results in 1.5 percent sales growth.

Major brand marketers know that marketing will only get complex as it continues to expand. But they will look for new ideas and insights on how various channels work together. And they will find the best way to allocate marketing budgets for advertising.

(Flickr / Kevin Krejci)

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Francis Rey Balolong

A coffee junkie who spends most of his time writing about the latest news on social media and mobile technology. I would definitely consider myself a nerd (in the coolest most hipster way possible). That being said, I love technology, music, writing, and all things mobile. Follow me: Google+ Twitter

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