Twitter Inc (NASDAQ:TWTR) Wants More Money From Presidential Hopefuls

Donald Trump

Twitter Inc is being crushed as its share price falls below IPO price; yet, the firm is betting that it can increase its revenue in the short to medium terms. News has it that Twitter plans to take a bigger share of the ad dollars that will be spent in the 2016 election cycle. Forbes reports that digital ad spending in the 2016 election will be more than $1 billion as candidates pay to be heard in the digital media space.

Donald Trump Twitter Inc

Twitter’s head of political sales, Jenna Golden believes that Twitter is now ready to get a bigger portion of the campaign online ad budget. She says, “We are clearly in a different place right now than we were in 2012″. More so, Twitter delivers huge ROI to advertisers and she believes that the firm can lure ad dollars to its platform. She says, “We’re in a place where we can work with these candidates and help them realize they need to shift their budgets to be on this platform.”

Twitter earns less than Facebook and Google in online ad budget for campaigns

A report released by Borrell Associates has it that about 50% of online ad budgets will be used on social media for the 2016 elections. In past elections, Twitter has earned less than Facebook during election cycles. The Borrell Associates reports holds that campaigns spend about 15% to 20% more on Facebook than they spend on Twitter for online ads.

Jon Massengale, COO of Upstream Communication, (a firm running online ads strategy for Gov. Chris Christie’s campaign) confirms Twitter’s lagging position behind Facebook and Google in campaign ads revenue. He says that Twitter usually earns less than 50% of the digital ad dollars that Google’s YouTube makes during elections.

The key reason Twitter had lagged Facebook and Google in making money from campaign ads was that it was still new to the online ads space during the 2012 elections. However, Twitter has developed a slew of new ad products that will give it better odds of making more money during the 2016 elections.

Twitter’s new ad products

Twitter has been launching new products that will help it take a bigger share of the online ads market. Project Lightning is one of such products that Twitter claims is “a brand-new way to look at tweets”. Amanda Bloom, media director at Bask Digital (the firm behind the Conservative Solutions PAC backing Marco Rubio’s presidential bid) seems to agree that Twitter is now more ready than ever before to claim a bigger stake in the online campaign ads space.

In her words, “Twitter is the platform for as-it-happens news, which is why it was so much of a focus for the debate advertising we’re running.” She believes that Twitter will play a bigger part in how candidates are perceived by the electorate. She says that the firm “see voters turning more and more to Twitter as their second screen as they’re watching live events like a debate.”

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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.


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