Twitter has rejected the outcome of the survey. Is Twitter doing an ostrich act?
According to the results of a survey, advertising agencies are increasingly turning more to Instagram than to Twitter to run their social media advertisement campaigns.
In what is a co-incidence, the survey from Strata, a unit of Comcast, came within the same week when Twitter announced that its head of product was leaving the company. Furthermore, eMarketer, a market research firm, has stated that Snapchat is set to surpass Twitter in U.S. active users, which again goes to highlight the threat the micro-blogging site is facing from growing competition.
Along with its stagnant user growth, Twitter is also struggling with management related turmoil and falling stock prices. Its advertising operations under CIO Adam Bain was relatively more stable.
Incidentally, Bain joined Twitter in 2010 and helped build its revenues from scratch to a towering $1 billion, in just three years.
As per the Strata survey, more than 83 advertisement agencies polled their clients as to which social platforms they preferred for social media campaigns. The result was that 63% of advertisers said they used Instagram, while 56% said they used Twitter. However, 96% of advertisers said they would use Facebook for running ad campaigns.
Rejecting the survey of the polls, Twitter said according to a study by Advertiser Perceptions, 37% of advertisers intend to buy ads on its platform while only 28% preferred Instagram, which is owned by Facebook. Furthermore, the same study showed that 46% were considering buying ads on Twitter compared with 41% on Instagram.
“The data presented in this survey couldn’t be farther from the truth,” said a spokesman for Twitter. “We have close relationships with our agency clients and continue to hear that Twitter offers the most powerful creative canvas.”
Irrespective of what Twitter is saying, this survey only goes to show Instagram’s growing power, which benefits from Facebook’s advertising technology which keeps getting updated with features which make it increasingly more useful for sharing activity updates and sharing news, which essentially are Twitter’s bread and butter. Further, whereas Twitter has 130,000 advertisers, Instagram has 200,000.
“We’re seeing almost all of our clients shifting if not all of their budgets, then most of their budgets from Twitter to Instagram,” said Chris Gilbert, senior social strategist at digital agency Kettle, which works mostly with fashion brands. “Marketers typically want to be where the audience is.”
Many ad agencies have said that their clients are shifting their budgets to Instagram because it has a much larger user-base of 400 million compared to 310 million on Twitter. Facebook’s ad technology which also allows them to target a specific audience, is also another reason for the shift.
“We’ve had more emphasis on Instagram for the last year,” said Jason Peterson, chief creative officer at ad agency Havas Worldwide North America.
Instagram declined to comment on the Strata survey.