In the past two years, car companies have been turning their funds more and more over to the online digital marketing segment. Starting with Twitter, Facebook and Youtube, the digital channels have been reaching millions of customers around the world.
Speaking with ClickZ, Twitter’s Chief Revenue Officer Adam Bain, said 12 percent of its revenues came solely from auto marketers during the first three months of the year, thanks in part to strong growth in that industry, as well as the popularity of Twitter’s newer paid placements, such as its Promoted Accounts offering.
“Promoted accounts are one of the best hidden secrets of the platform. Unlike trends, they’re based on targeting. If the marketer understands the value of a certain type of customer, they can bid really effectively,” Bain said. “Each marketer knows how much a follower is worth to them, and once they’ve acquired that follower, brands can keep marketing to them,” he continued, adding that between 20 and 40 percent of Twitter users follow at least one brand.
Promoted accounts are currently sold on an auction-based model, with advertisers paying on a cost-per-follower basis to target certain keywords linked with data from users’ accounts, such as who they follow. Automotive advertisers have been paying as much as $70 per follower, though the average price ranges from $10 to $40 for that vertical, Bain revealed. The overall average for all advertisers is lower still, however, at under $10.
Promoted Trends get the most attention since they appear for a full 24 hour time period, and nearly all Twitter users will see them.
Another hidden gem within Twitter is Promoted Tweets within the search capabilities. A simple search for BMW reveals a BMW i ad at the top of the search results page. The top spot can be bought by any advertiser and in the recent past, Audi used this feature to embed their own online ad within BMW search-related queries.
In the next years, we anticipate that the online spending will far exceed TV and print ads and the continuous growth of platforms like Facebook and Twitter will play an important role in relaying messages to customers and fans.