The Financial Times has some interesting insights into just what advertisers are willing to pay for more followers on Twitter – and they’re not cheap.
As more advertisers sign up for Twitter’s (still) beta ad program, it looks like the competition is getting pretty fierce.
The Financial Times claims that advertisers are paying, on average, between $1 and $4 per new follower, but some, such as car manufacturers, are bidding as high as $10.
When discussing the current state of Twitter’s advertising, Adam Bain, head of revenue, explains that “Twitter the product is five years old, [but] Twitter the business is just slightly over a year old.”
And it’s true: Twitter didn’t roll out its first advertising product (Promoted Tweets) until April 2010 – four years after it was created.
Bain also went on to say that there were only a “handful” of people in Twitter’s advertising department when he joined in September 2010, and they have now expanded to more than 100 across several countries.
Twitter has sold advertising to 3,000 brands thus far – a significant number considering that Promoted Products are still an invite-only program. And, according to an unnamed source cited in the Financial Times, some larger brands have committed to spend $2 million in 2012.
The advertisers spoken to by the Financial Times had mixed reviews on Twitter’s ads, the general consensus being that engagement rates on Twitter were high, but that it was difficult to measure exact return on investment.
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