Adam Bain, Twitter’s Chief Revenue Officer, explains how does Twitter make money at Business Insider 2011 Ignition conference.
Some insights. See the complete talk below.
- 100 million users / month
- 50 million people log in everyday
- 250 million tweets per day
- 2400 advertisers now (November 2011). Up from 16 advertisers this Spring and 6 advertisers 18 months ago
- Renewal rate of advertisers: 80%
- Engagement rate of Promoted Tweets: 3% to 5%
- 800 employees and 100 in Ad Sales & Operations (they had 0 18 months ago)
- 50% of the use of Twitter today is through mobile devices
- When Twitter approached marketers to lure them into their platform, the question they were expecting was “Why Twitter?”. Instead, they got “How?”
- That question has 3 answers, as I recently blogged (post I, post II): Promoted Tweets, Promoted Trends and Promoted Accounts.
- Traditional online ad display gets between 0.03% to .05% of click through rate. Twitter is having 100 times that rate.
- For Twitter, engagement is not just clicking on a link. It’s also retweeting*, for instance.
* At this point Adam said that Twitter was the only platform that allows you to reshare content with your friends, and gave the example that you don’t send to your friends a screencapture of google search results or of a portal homepage. I don’t think that’s is totally correct because Facebook and G+ let you reshare content to your connections.
- Virgin example: In September they ran a Twitter only 1 day sale campaign where you could go from any US city to any US city: they had their 5th highest sales day in the history of VA.
- Paramount wanted to promote the movie Super 8 and create a lot of word-of-mouth before opening day. They ran an only on Twitter sneak peak and then users could buy the ticket (full retail price). In a couple of hours they got 1,5 million dollars in tickets sold. About 100.000 people saw the movie in the first day through the campaign and after seeing the movie they started tweeting how great the movie was. The movie was expected to do $20 million to $25 million on the first weekend, they ended up doing $38 million
- Brian didn’t disclose the amount Paramount paid for this campaign but shared that the budgets that are coming to Twitter are being shifted from traditional online ad displays from big Portals
- Self service platform is being rolled out to scale the business
- Volkswagen unveiled the new Beetle online with Twitter and got an engagement rate of 52%!.
- Verizon & Fox at Emmy opening did a product placement experiment with Jane Lynch that led to massive conversation about the Verizon brand online**
See the full video of Jane Lynch performance. The product placement moment with the “Can you hear me now” guy starts at around 5:50