Adam Bain spoke at the Ad Age Digital Conference this week about his experiences in the past 6 months on the job as Twitter’s president of revenue. He touted some impressive stats about Twitter’s advertising potential – it’s high engagement rate, repeat business, and a look at what consumers are doing on Twitter versus Facebook.
As Social Times, our sister site, reports, Bain proudly noted that 80% of Twitter’s advertising business is repeat business. This means that a significant majority of advertisers who either got some free or cheap beta ad space, or who paid for their first Promoted Tweet, are coming back for more. And these ads are seeing engagement rates that are much higher than web averages, around 3 to 5 percent.
Whats more, Paid Content reports that Bain got into the numbers: Twitter started its Promoted Products in April 2010 with just 6 partner advertisers. They now work with over 600. Pretty impressive growth in just under a year.
Bain also spoke about how consumers react to sponsored tweets, and his numbers look good for any advertisers contemplating jumping into the space. 67 percent of Twitter users said they would be more likely to make a purchase from a follower, while only 51 percent of Facebook users said something similar about their friends. Bain explained that this is likely due to the fact that 40 percent of Twitter users follow at least one brand’s account, making them more receptive to interactions with advertisers.