Determining the return-on-investment (ROI) of social media can be challenging. This is one of the reasons why many advertisers questioned whether they should be spending more on Facebook ads.
When Facebook partnered with Datalogix, they were able to convince General Motors to come back as an advertiser since ads placed on the social network effectively converted into offline sales. Twitter has announced that they have partners with Datalogix as well to prove that promoted tweets can drive offline sales.
Twitter said that Datalogix is going to divide users into groups, ones that have been exposed to a company’s organic tweets or promoted tweets versus those who have not. Datalogix will use this data to compare it to that user’s buying activities. Twitter has conducted studies on about 35 brands so far.
Twitter learned that engagement drives greater in-store sales, brands’ organic tweets drive sales, and followers who see Promoted Tweets buy more.
Twitter charges advertisements for engagement rather than impresses ions. However, the impressions are also valuable for the brand. By not charging the brands for the impressions, Twitter believes that the brands promote high-quality content, according to TechCrunch.