Advertisers Plan Twitter Budget Increases as ROI Improves

December 16, 2013

AdAge-Changes-in-Twitter-Ad-ROI-Dec2013Roughly 6 in 10 marketers advertising on Twitter expect their Twitter ad budgets to increase either significantly (12.1%) or modestly (47.1%) over the next year, reports Ad Age in its latest social media survey conducted with RBC Capital Markets. Presumably an improving ROI helps the cause: respondents were about 6 times more likely to say their ROI has improved (39.8%) than deteriorated (6.4%) over the past 6 months.

In an encouraging sign for Twitter, which has an active mobile user base, advertisers appear generally happy with mobile’s ROI when compared to desktop ads. While a majority 72.6% said that Twitter’s mobile and desktop ROI are about the same, the remainder tended to see mobile’s ROI as better (22.9%) rather than worse (4.5%) than desktop.

Also of note: while about 7 in 10 respondents – execs at marketers, agencies and media companies – use Twitter as a marketing channel, only a minority (46.5%) of those are spending on advertising on the platform. By comparison, a previous survey from Ad Age (covered here) found that of the 83% using Facebook, almost three-quarters were buying ads.

It’s always interesting to see where budgets are being drawn from: a majority 58.6% share of respondents said that their Twitter budgets represent new spending. Those reallocating from other media are most commonly turning to offline (17.6%), online display (16.6%), email (12.3%), search (10.8%) and TV (9.9%) for funds. (Similar data concerning the constitution of online video and social media budgets can be found here and here.)

Other Findings:

  • About 1 in 5 respondents said they have used Twitter in conjunction with a TV campaign.
  • Promoted Tweets are the most popular of Twitter’s ad formats among respondents, used by about twice as many as promoted accounts, and by roughly three times as many as have used Twitter Amplify.
  • Respondents’ primary goal for Twitter advertising is to build awareness and sentiment for their brand, with significantly fewer claiming as their main goal driving traffic to their websites, building followers, generating sales leads, selling products and staying in touch with customers.

About the Data: The survey was conducted between late November and early December among 953 execs at marketer, agency and media companies.

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