In our earlier post, I mentioned that Twitter might touch the 1 billion mark in its ad revenue in 2014 however it will be Facebook which will drive the growth of social media for next few years with significant differences. Interestingly, the latest report from TBG Digitals shows that ads on Twitter page (especially on mobile) showing more impact on the market than ads on Facebook.
Undoubtedly, Facebook ads are more popular among the users due to 900 million+ users network. As a result Advertisers prefer to invest in Facebook than Twitter. In general, such a large audience inside Facebook compared to Twitter will surely be able to produce a good CTRs (Click Through Rate). Although, the number of users per ad on Twitter is less in comparison to Facebook, Facebook mobile ads are less effective than Twitter ads.
Facebook’s mobile ads in its News Feed are providing more CTRs (0.588%), which is 7 times more than the ads on the right sight of its “Home Page”(0.083%). While, on the mobile “News Feed’s” CTRs is average 1.140% response. Whereas, 24 million Twitter users agree with 0.266% response for Twitter mobile ads. This because, Twitter provides its user to comment within 140 words per post, where Facebook has no word limits. No doubt, Twitter ads are limited but Facebook allows to write short stories on its ads which able to create a social endorsement.
The above comparisons were between the ads on Twitter’s promoted accounts and Facebook news feed ads. TBG Digital has revised its statement on Friday and estimated a new statistic for Twitter users. According to the new revised report Twitter has shown an engagement of 1-3 % of its ads on desktop and the rates are even higher on mobile. After including all the Tweets from Twitter promoted brands with non promoted brand, it is clear that Brands engagement on Twitter mobile is three times more than Facebook average brand engagement per ads (averaging 1.140%).
Mobile users prefer less word content and a brief description about the brand.; And Twitter’s 140 character limit helps the users to effectively summarize the complete topic and direct-to-point within the given limits. Eventually, Facebook is trying to generate revenue from its mobile as the company’s new acquisition of different apps and companies clearly showcase these data. It is also a matter of concern that Facebook ads are more popular on its news feed area which is less in comparison to the regular showing ads, on the right side of its home page. However, Twitter allows its users to post directly between tweets rather than any other area on sidebar. Due to which, users stay more engaged with Twitter Ads compare to Facebook.
But I see Facebook Ads more promising in future as the social media giant has recently following the foot-mark of Twitter. Recently Facebook has launched the “Promoted Updates” features for brand and business pages. Similar to Twitter’s promoted Tweets, Facebook Brand pages can also promote any of their updates by paying certain amount based upon the ‘Reach criteria’.
Undoubtedly, Twitter is wining over Facebook from advertisers’ ROI prospective and if the trend continues with growing community of Twitter, it would be more difficult for Facebook to improve its Revenue stream. Interestingly, all such things Facebook need to do when it’s witnessing saturation point in users’ growth in many tops countries like USA, UK and Canada. It’s time for the company to concentrate more on countries which less penetration rate with bigger room to expand like India, China, Brazil etc.