Twitter to Roll Out Promoted Tweets to 50 More Countries

Twitter is planning to introduce its advertising products to 50 more countries as it seeks additional revenue outside of the U.S., Twitter executives announced at a festival in Cannes, France, Thursday morning.

According to The Guardian and Bloomberg Businessweek, Twitter’s Promoted ads suite — which includes Promoted Tweets, Promoted Trends and Promoted Accounts — will first roll out to Latin American, namely Brazil, and western European countries including Spain and Germany. Promoted ads are currently only available to marketers in the U.S., UK and Japan.

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“There is a ton of demand but we don’t have dates as yet,” Twitter CEO Dick Costolo said. (In an email, a Twitter spokesperson said that ads would come to Latin America later this year. The spokesperson did not specify a date for Western Europe.) He added that Saudi Arabia is the network’s fastest-growing region at present.

Twitter is expected to bring in $259.9 million in ad revenue this year, according to eMarketer. Currently, 90% of ad revenue come from U.S. companies, the researcher said.

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Unlike many other web-based publishers, Twitter doesn’t depend on display advertising for the bulk of its ad revenue. Instead, its ad units are baked in to its core features, including trending topics and tweets, which are served in almost identical fashion on Twitter’s desktop and mobile platforms. Facebook has recently begun imitating Twitter’s ad products to boost mobile revenue by serving Sponsored Stories in the mobile and desktop News Feeds of its users.

On stage, Costolo noted that 60% of users access Twitter via mobile, and that mobile revenue exceeds non-mobile revenue some days.

Co-founder Jack Dorsey fielded a question about a potential IPO. “The company has always put itself in a position to choose when it is ready [to IPO or be acquired]. We do things when we are ready. We have a good understanding about pacing and have the discipline to make the choices ourselves,” he said.

1. Use Promoted Trends or Promoted Tweets to Publicize an Event

Twitter is all about discovering what’s going on right now. As Bain notes, many users return to Twitter’s homepage a few times per day just to see what’s trending. Promoted Trends leverage that phenomenon by giving advertisers a premium position on the page.

Bain says that this can yield much higher engagement rates than standard online advertising, for example, banner ads. Introduced in 1993, banners have notoriously low click-through rates, even though such advertising is still growing rapidly. (Proponents of banners also point out that, while the ads work fine for raising awareness, direct sales are still measured by clicks.)

Nevertheless, Bain says Promoted Trends and Promoted Tweets yield engagement rates between 3% and 10% on average, and sometimes much higher than that. For instance, Volkswagen got 52% engagement on an April 18 Promoted Tweet for its 2012 New Beetle launch.

In this case, engagement is defined by click-throughs (which usually accounts for 80% of the total), retweets and “favorited” tweets. The buying process for Promoted Trends and Promoted Tweets and all of Twitter’s ad products follow a model similar to Google’s — marketers buy them in an auction at a cost-per-engagement rate, and then pay based on engagement.

Obviously, if you’re running a Promoted Trend or Promoted Tweet, it helps if you have some kind of news, product launch, or associated event. For instance, For instance, Coca-Cola earned high engagement during the 2010 World Cup — whenever a goal was scored, Coke would unleash a celebratory tweet.

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Image courtesy of iStockphoto, arakonyunus

This story originally published on Mashable here.

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