|[December 19, 2013]
New MarketShare Analysis Reveals Twitter Impact on TV Ads
LOS ANGELES --(Business Wire)--
In an analysis conducted for Twitter (News - Alert), MarketShare - the leader in
advanced marketing analytics - has found that TV ads were more effective
when combined with Twitter paid advertising for the category examined.
This study - which focused specifically on new mobile service
subscribers in the UK - found that for mobile carriers, TV advertising
generated new customers at an average of $131 each when there wasn't
Twitter paid advertising. But for those carriers combining television
ads with Twitter advertising, customer acquisition cost for TV
advertising dropped to about $83, a 35% improvement.
"Now more than ever, major brand marketers need to understand the
complex interplay between different marketing channels, and
online-offline in particular," says Jon Vein, Co-founder and CEO of
MarketShare. "This analysis for Twitter is shedding new light on today's
complex consumer journey and how companies can profit from these
insights in an increasingly multi-screen world."
"We have always believed that Twitter is a powerful complement to
television, and this study supports that," says Adam Bain, President of
Global Revenue for Twitter. "MarketShare's ground-breaking work, using
big data techniques and leading edge analytics, helps us quantify how
Twitter can be a force multiplier, making television advertising even
more effective than ever."
Study Goals and Findings
MarketShare's analysis aimed specifically to measure the impact of
Twitter paid products - promoted tweets, accounts and trends - on
driving subscriber growth for mobile carriers in the UK. Results shed
light on Twitter's role in driving new mobile subscribers, the role of
marketing spend in timulating Twitter engagement and increasing sales,
and how Twitter advertising affects TV ad performance.
Results indicate an "amplification" effect from Twitter promotions that
helped mobile carriers improve ROI on their television ad spending. Paid (News - Alert)
Twitter programs also drove increases in other business outcomes for UK
mobile carriers, including positive user commentary about marketing
campaigns and branded search volume.
The study showed that Twitter paid advertising at a relatively small
amount of spend - about 1.5% of total budgets on average - produced 9.5%
of marketing's overall contribution to sales. By comparison, online
display ads consumed 5.1% of ad spending and delivered 5.5% of results.
Print spending, meanwhile, was 31.7% of the total, while delivering
34.5% of the results.
MarketShare also measured how "share of voice" in the world of Twitter
conversations (tweets; re-tweets, mentions, etc.) contributed to a lift
in sales for UK mobile service providers. The study established that a
simulated 10% increase in positive share of voice for service produces a
0.5% lift in sales. Likewise, a 30% boost in positive service-related
conversations would lift sales 1.5% percent.
As marketing complexity continues to expand, big brands are seeking new
insights into how marketing channels interact, and how best to allocate
marketing dollars. Now, with the help of MarketShare's advanced
marketing analytics expertise, Twitter has quantified the financial
impact of paid advertising on its platform with true
return-on-investment (ROI) metrics that help brands make more informed
marketing choices. Future analysis will further explore the interplay
between Twitter, TV and other marketing channels across more categories
MarketShare is an analytics company that enables businesses to grow
efficiently by uncovering which actions really drive results. Founded in
2005, MarketShare has a track record of groundbreaking innovations in
data, modeling and software, and has worked with over half of the
Fortune 50. MarketShare's platform provides a combination of technology,
data, modeling and business intelligence solutions that lead to improved
decision making, next-generation attribution and optimization for
businesses. The company is headquartered in Los Angeles, with offices in
San Francisco, New York, London, Tokyo and Bangalore. For more
information, visit: http://www.marketshare.com;
follow us on twitter @MarketShareCo.
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