Though the network’s new suite of ad products have been greatly hyped their performance is still lagging.
Even though Twitter’s newest suite of social media marketing products for mobile has experienced massive hype, it still appears that the microblogging network is falling behind its two giant competitors over this channel.
A recent report has shown that the ads from Twitter aren’t doing as well as Facebook and LinkedIn.
John Blackledge, an analyst from Cowen & Co. has reported that social media marketing ads on Twitter mobile are not performing as well as those that are posted on Facebook and LinkedIn. This suggests that Twitter may not be the dream ad opportunity that many of its investors have come to believe it to be. Blackledge explained that “Twitter is a popular social platform, but shares are too rich in our view.”
The focus on mobile social media marketing has reflected very positively in Twitter’s share prices.
The fall IPO price for Twitter shares in 2013 was $26. That said, by the end of December, that stock had exploded to $74 per share. Equally, though, the social network has not sustained the valuation.
Blackledge conducted some research making social media news, that involved fifty buyers and their opinions regarding the effectiveness of social media companies such as Twitter, and their mobile ads. Only 5 percent of the participants stated that Twitter provided the best ROI. Comparatively, the ads over Facebook were considered to provide the best performance by 60 percent of the participants, with 25 percent giving their applause to LinkedIn.
Those figures suggest that the low ROI is linked to pricing. Blackledge also pointed out that the respondents to his survey commented that some of the downsides of Twitter’s social media marketing tools with regard to advertising value proposition were “high minimum ad spend” and the “cost of campaigns”.
This year is supposed to be a defining one for Twitter, as its numbers and usage continues to grow. It will be interesting to see how today’s figures compare to those that will be generated later on in 2014 or those at the same time next year.