Twitter and Facebook to took advantage from Rising Digital Ad Spend

According to a recent survey advertisers are making strategies to increase their ad spend on social networks websites like Facebook, Twitter, LinkedIn and YouTube.

Spending on social media advertising continues to surge and the big three namely Facebook Inc., YouTube and Twitter Inc. are still dominating. According to a latest assessment done by Ad Age specifies that companies wish to intensify their advertisement spending with all these social network companies.

Now days, advertisement on social media are becoming significant for every business. In a report last week, RBC Capital analysts scrutinized the survey and commented on the results that how important it is for the foremost social media sites.

An important aspect noted by them was the fraction of participants who thought social network made up below 10% of its budget related to marketing has plunged to almost 48%. During the last two surveys, the responses were 50% and 62%.

RBC analysts believes that the spending on advertisement is most likely to increase dramatically, as almost 75% respondents of the survey conducted in February replied that they anticipate their spending to increase on social media network. However, 25% of the participants believe that it will stay as it is while just 1% believes that it will go down.

The study pointed out that Google Inc. is the topmost company in regards to return on investment as this question was split with every advertising online platform. Facebook joined Google at the top, however, Twitter, LinkedIn and YouTube were at the center and AOL and Yahoo were the lowest in getting return of the investment.

It’s not surprising that mostly advertiser of Facebook that accounts for 62% are willing to surge their spending on social websites. It also mentioned that nearly 54% of Twitters advertisement will increase by the same platform advertisers. However a slight percentage of advertisers responded to minimize their expenditure on social media sites.

The Royal Bank of Canada analysts noticed that survey results were positive for Facebook as majority of its current marketer’s plans to extend their spending on social network and the maximum percentage of advertisers outlaying almost 21% of their total marketing budget on Facebook.

More than 50% participants think that their investment return has increased during the past six months. The study also indicates the traction in video ads.

The major issue for Twitter was the decrease in previous survey results. Also the company had the lowest result in allocation of ad budget and estimating future expenditures. However, the optimistic areas are apparent return on investment and tactics to grow budgets.

Twitter Considered Being A Promising Gamble In 2015

From the last few weeks, Twitter Inc. has been thrown into a pool of serious criticism. However, based on the changing aspects of social networking; online news media and the company’s ability have retained shareholders interest on the way to micro blogging platform this year.

The current era of social network has been the reason for the expansion of services and platforms, which are now considered to be an important part to change the perception, start mass movement, and redefined the way people connect and interact with the rest of the world.

During the last decade, Twitter Inc. and Facebook has been at the front to witness the changes took place in the world through social media. In an attempt to cope up with the problems in the plugged up and fastest growing social network, Twitter has provided a platform to the world for  quick news distribution, micro blogging, getting to know people and business from all over the world, sharing content. Twitter also started innovative trends, to provide awareness to the users about politics, sports, and businesses.

However, things are not measure so easily by The Wall Street, especially when there are huge criticisms on a company for not putting efforts towards user growth, where billions are on stake.

There has been news for past several months about the company’s performance related to user growth, monetization, user base, financial performance, ad revenue and more importantly the future guidance. The biggest distress for the company and investors is steady logged-in user base growth.

During the fourth quarter of 2014, Twitter ad revenue per user grew by 65% against Facebook, whose ARPU increased by 35% only. The average ARPU has out-shined over the years and company believes that it will increase more in future.

Twitter is in competition with linked-in, Facebook and its Instagram and others. Majority of the investor complains about the steady growth of company’s user base, by mentioning examples of its competitors. However, the investors are not well aware of the fact twitters has entirely different business model than these companies. Facebook is considered as a biggest threat to twitter, but despite of all this we overlook the element that Facebook business model and platform is mainly for socializing not for broadcasting and micro blogging like twitter.

Twitter has been continuously putting efforts to grow its user base by making the sign-up process simpler, while also planning of reducing 500 million inactive users from the data base.