Twitter Inc (TWTR) users that interact with auto ads are more likely to buy a new car

Posted Feb 14, 2014

Twitter Inc (NYSE:TWTR) wants to get in on the $15 billion+ auto advertising market. Twitter said that households with users of the service are twice as likely to buy a new car as the average U.S. household. Around 6% of households with Twitter bought a new car during a six-month period based on data from Datalogix last year. These households bought new vehicles at double the national rate from April to October.

Twitter CEO Dick Costolo is also looking for ways to reverse a slowdown in user growth, which caused their stock price to drop around 24% the day after their earnings report as a public company earlier this month. Twitter’s sales of ad services more than doubled in Q4 to $220 million, which is 91% of their $243 million revenue for the period. Twitter generates over 85% of revenue through third parties to promote tweets and accounts.

The biggest category of U.S. ad spending is automotive companies and dealers. Users that click, retweet, reply, or favorite an auto advertisers’ promoted tweet were 32% more likely to buy a new vehicle than the average Twitter user added Datalogix. Facebook worked with Datalogix to help win back the General Motors account in 2012.

Twitter had a major presence during the Super Bowl. Toyota worked with Disney’s “The Muppets” for a Highlander SUV ad with the hashtag #noroomforboring. Jaguar also promoted the F-Type Coupe with the hashtag #GoodToBeBad.

[Source: AutoNews]