Twitter launched its Promoted Tweets marketing products back in April 2010 to much fanfare (and more than a little hyperbole). While the platform took a little while to find its legs, a new study has revealed that almost four in five U.S. marketers have now used Promoted Tweets in their advertising campaigns, despite paying more than twice what they were just six months ago.
A June 2014 study by RBC and Advertising Age found that 79 percent of U.S. marketers have used Promoted Tweets in 2014, up from just 44 percent last year. 32 percent have used Promoted Accounts this year (compared to 21 percent in 2013), and about one in five have used Promoted Trends and Twitter’s Amplify program.
Just 12 percent of U.S. marketers haven’t used any of Twitter’s promoted products – that’s pretty impressive.
But here’s where it gets interesting. Another study by AdParlor noted that marketers are paying more in June for both clicks and engagement in Promoted Tweets than they were back in January of this year. In just six months the average cost per click (CPC) has risen from $0.10 to $0.29, while average cost per engagement (CPE) has also climbed from $0.10 to $0.28.
Overall, Promoted Tweet CPC has more than doubled to an average of 25 cents in Q2 2014 compared to 11 cents in Q1.
Of course, more users paying more is good news for Twitter, but not so good for the marketers and brands themselves, who are either getting 40 percent of the results they were six months ago, or paying 125 percent more for the same outcome. That’s a trend that simply cannot be sustained, so one imagines Twitter might have to tighten its belt a whisker to keep its biggest customers happy through Q3 and Q4 of 2014.