Twitter starts showing ads to logged out as well as non-users
Twitter is planning to make more money by advertisment. So, it announced on Thursday that it will start showing ads to its “logged out” audience, a group of roughly 500 million people who visit Twitter every month but who don’t have active user accounts. That means if you click on a tweet that appears in a Google search, for instance, you may see ads on that tweet page or on the tweet creator’s profile.
This is a huge deal for Twitter. First, it’s important to some advertisers, who don’t think Twitter has enough registered users — especially compared to Facebook — to matter, and also to Wall Street, for the same reasons. But the company has argued for years now that its audience is much bigger than the 320 million people who log in each month, and it has been telling Wall Street that it can make money off people without Twitter accounts. Now it’s finally doing that.The Street seems to like to move, sending shares up about 7 percent in early trading Thursday.The unknown, of course, is how much money these ads can actually generate. Twitter’s advertising pitch has always been anchored to the promise of relevant targeting:
We know who you are because we see what you tweet, who you follow and what kinds of things you engage with.
It’s the Facebook pitch, too, but it doesn’t really translate when people aren’t logging in.Twitter COO and revenue boss Adam Bain believes these new ads — which will run in Twitter’s core “promoted Tweet” format — can still generate significant revenue; he said on Twitter’s last earnings call in October that the company believes these ads will monetize at about half the rate of usual Twitter ads.The difference will be in the targeting. Instead of monetizing a user’s interests, it will monetize the context in which a user comes across a tweet.
It still has plenty of options. It sells ads inside other apps through developer products like MoPub, and there are still parts of it that won’t show ads to logged-out users, most notably the site’s homepage.
Apart from this,
Twitter also going start showing ads to non-users as well just wandering by site or via google search. As we know that twitter doesn’t use banner ads, but instead shows users sponsored tweets that are theoretically targeted to them. Yet plenty of visitors to the site aren’t registered users: they’ve followed a link despite not having an account or not being logged in yet. Twitter hadn’t tried selling these visitors’ eyeballs to advertisers until now.
Yes, logged-in users visit the site more often, but there are only around 300 million users of the service. Every month, more than 500 million people wander on to the site through Google searches, other search engines, or links.
The experiment will start for desktop users in only four countries: the anglophone U.S., U.K., and Australia, and in Japan. Yes, Twitter has very heavy mobile usage, but desktop users are more likely to click on links to Twitter without already being logged in.
The off-Twitter ad program has also informed which ad formats Twitter has picked to show the logged-out audience visiting its site. Mr. Bain said that promoted video ads “really performed for these logged-out users” and that “a lot of content viewing [on Twitter] is actually on desktop web for video,” so it’s video ad format made the cut.
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