Twitter’s business model depends upon the success of its Promoted Products suite, which include Promoted Tweets, Trends, and Accounts, but advertisers have been complaining that the click-through rates have been quite small, and while big customers like Starbucks and McDonalds are coming back for more, small and medium sized companies have so far not demonstrated much interest in purchasing a Tweet. Promoted Tweets, Trends, Accounts and other less expensive aimed at smaller businesses were introduced this year.
Chief executive of .Com Marketing Hilary Bressler explained returns from the Promoted Products suite are not sufficient for small businesses. “It’s more about image and branding. For a lot of small businesses, if they spend $10,000 to $30,000 on a campaign, they need to see a 4% to 5% return (from direct sales).” Other executives have expressed the similar view that Twitter produces insufficient return on investment.
However non-Promoted Tweets are more often successful in reaching advertisers targeted audience.
Advertisers have also complained that return on Promoted Products has been inconsistent for sales. “The click-though rates were paltry. My sense is they’re going to say ‘our money can be better spent elsewhere’” said advertising executive Craig MacDonald, who said his client would not place a second round of on Twitter because results on the first go were so dismal.