Twitter is expected to IPO November 7, and a new report from WordStream compares the performance of Twitter Ads and Facebook Ads.
Titled, “Do Twitter Ads Work? Comparing the Ad Performance of The World’s Largest Social Networks,” WordStream founder Larry Kim breaks down the data into four categories:
- Network Reach
- Ad Performance
- Mobile Ad Performance
- Ad Formats
As we previously reported, Facebook has nearly five times more monthly active users than Twitter. When it comes to daily shares, that number jumps to nearly 10 times more.
Here’s a breakdown of ad performance across both social networks:
- Average CPM – 59 cents for Facebook, $3.50 for Twitter.
- Average CPC – 50 cents for Facebook, no data published for Twitter.
- Average CTR – 0.119 percent for Facebook, 1-3 percent for Twitter.
- Mobile CPC – 40 cents on iOS, 18 cents on Android for Facebook, no data published for Twitter.
- ROI – 109 percent for Facebook, no data published for Twitter.
- RPV – 93 cents for Facebook (up 39 percent year-over-year), 44 cents for Twitter (up 300 percent year-over-year).
- Share of social referred visits: 62 percent for Facebook, 6.8 percent for Twitter.
- First click revenue per visitor: $1.63 for Facebook, 80 cents for Twitter.
According to Twitter, Promoted Trends which can cost over $200,000 per day, increase brand conversions 22 percent, positive mentions by 30 percent and retweets by 32 percent.
Facebook Ads performance can vary depending on the industry, with alcohol brands CPC 45 percent higher than average.
Facebook commands 15.8 percent of mobile ad market share while Twitter commands 1.85 percent.
Some other statistics:
- Total mobile ad revenue for Facebook grew 76 percent from Q2 2013 to Q3 2013.
- During the first half of 2013, Twitter’s mobile ad revenue was $6.5 million, over double what it generated in 2012.
- Twitter ad revenue is expected to hit $1.33 billion by 2015, and over 60 percent will come from mobile.
Twitter Ads come in just three simple flavors: Promoted Tweets, Promoted Accounts and Promoted Trends.
Facebook Ads come in 10 different formats:
- App ads
- Domain ads
- Mobile app ads
- Offer ads
- Page-like ads
- Page post link ads
- Page post photo ads
- Page post text ads
- Page post video ads
- Sponsored Stories
According to Larry Kim, neither social network is great for direct response marketing.
“The intent just isn’t there compared to search. These social platforms are better for big brand advertising and engaging with your fans through content marketing (soft sells vs. e-commerce). If you have the budget for those kinds of marketing activities, then you’re better off on Facebook than Twitter, but the reality is, neither is all that effective and both platforms have a ton of work to do on the paid side. I suggest they look to Google AdWords and the Google Display Network for inspiration.”
What have been your findings with Twitter Ads, Facebook Ads or both?