The Cost Gap Between Twitter and Facebook Continues to Narrow
August 11, 2014 | 10:30am
Both Twitter and Facebook have reported strong earnings this past quarter, while many in the financial and advertising industries continue to compare the two social media platforms in terms of ad revenue potential. Data on the ad spend found within STRATA’s systems over the past two and a half years sheds some light on the competition for ad dollars.
We found that ad agencies are spending $0.43 on Twitter for every $1 they spend on Facebook in the first six months of 2014. While the gap is still significant, it has continuously narrowed since 2012; in 2013, the ratio was $0.33 spent on Twitter for every $1 on Facebook. It was $.30 to $1 in 2012.
Some of the Twitter’s momentum has been thanks to its ability to capitalize on real-time and event-driven marketing, and the World Cup was a great example of that capability. But if Twitter wants to narrow the gap further it will need to address its difficulty measuring eyeballs because so many consumer view tweets outside of the app.
The agencies we work with are also reporting an increased in interest in advertising on social channels. Our most recent quarterly survey of agencies found that 86% said they will likely use Facebook in client campaigns, followed by YouTube (62%), Twitter (57%), and LinkedIn (38%). When buying on Facebook, 49% of advertisers are most likely to use Promoted Posts for their Facebook ad purchase, followed by Page Post ads (27%).
To hear more about Twitter and Facebook ad sales, see STRATA president Joy Baer’s recent interview with TheStreet - http://www.thestreet.com/video/12825630/twitter-is-better-than-facebook-according-to-ad-sales-expert.html