Nearly two months since Orlando-based IZEA launched SponsoredTweets.com, supporters and critics alike continue to discuss whether the "pay-per-tweet" platform will succeed in the ever-changing Twittersphere.
"Sponsored conversations are the wave of the future," said Ted Murphy, Founder and CEO of IZEA. "More and more, people are tuning out traditional display advertisements and are increasingly more interested in becoming an active part of the content stream."
Under the watchful eye of the Federal Trade Commission, the ad platform known as SponsoredTweets has already experienced its share of controversy. Previously known as Pay-per-Post, the company originally worked solely with personal bloggers who were paid to write about random products. Currently, SponsoredTweets.com is working with a network of hundreds of well known "tweeters," including celebrities such as Holly Madison from "The Girls Next Door" and rock band Sister Hazel.
"We have access to celebrities who never had the time to maintain a blog, but do find the time to regularly update a 140 character twitter message," said Murphy, who has become quite the entrepreneur since founding his first company back in 1994. "It opens up a number of new opportunities for advertisers."
Soon after completing SponsoredTweets application process, companies have the option to evaluate possible "Tweeters" and decide who would deliver their product's message in the most effective matter. Selected Tweeters can then send their followers messages about the company's brands and products in periodic Twitter messages. In return, Tweeters get paid based either on the number of clicks they receive or on a flat fee per Tweet. IZEA execs say they have signed on with over 200 advertisers in the past two months, including Giorgio Armani and Kmart.
"I would say that most of these companies are in the experimental stage with this platform," said Murphy. "Luckily, the platform is set up so advertisers can basically use a relatively small test budget to determine SponsoredTweets effectiveness."
One of the companies checking out how SponsoredTweets could fit into their overall media plan is Kmart.
"I would say that the jury is still out on this application," said Robert Harles, VP SHC community at Sears Holdings Company. "I don't think anyone has really cracked the code when it comes to social media. It seems like everyone is doing their share of experimenting at this point."
Kmart's SponsoredTweets have covered everything from talking up items currently on sale to promoting new products. In addition to its work with SponsoredTweets, Harles said that Kmart has also personally contacted bloggers who seem to represent their target consumer, to encourage them to share the retailer's message.
"We have really tried to shy away from just paying someone to share our message," said Harles. "I've seen how marketers can shoot themselves in the foot trying to make people talk about them. To be honest, if we contacted a blogger who asked to be paid to talk about our product, it would raise a red flag... or at least a yellow flag."
For marketers, finding the right tweeter to sponsor is often difficult. Whereas SponsoredTweets can provide a multitude of Twitter-related metrics to help ease the search, how is a company to know who is the right messenger for their message?
"Just because someone has a lot of followers does not mean they are engaging their audience," said Murphy. "The conversations [tweeters] initiate must ultimately bring traffic to the advertiser's site. Good advertisers tweeting the right message will engage people to get involved in their campaign and give feedback."
"Building a real relationship with these tweeters is going to elicit honest feedback, discussion, and opinions from their followers," said Harles. "From there, we have learned you can connect, listen, and respond. Access to this type of information is priceless."
The right relationships will also lead many tweeters to continue tweeting about the product even after the sponsored campaign is complete.
"We like to consider ourselves a dating service of sorts," said Murphy. "We introduce you to one another, but we won't go on the date with you."
Of course, with many companies just starting to get their feet wet in the social media landscape, experts suggest a few important tips when it comes to effectively sponsoring tweets.
"I would say that it's crucial for the advertiser to allow the tweeter to write in their own voice," said Murphy. "Of course, the advertiser can review the copy before it goes out, but having the message come from the tweeter themselves in their own voice will elicit a much higher response."
Murphy also stresses the importance of mandatory disclosure when it comes to sponsored tweets.
"Every sponsored tweet must include a disclosure phrase such as 'sponsored by,'" said Murphy. "If someone is being paid to tweet about a product, it must be disclosed."
"Disclosure is essential," added Harles. "Unfortunately, not every company out there participating in various social media is following that rule."
One of the biggest advantages to advertising in the Twittersphere is the fairly low out-of-pocket price it takes to make some initial impressions.
"I would tell marketers to not be afraid to experiment," said Murphy. "Spend a couple hundred dollars and sit back and see what happens."
Tricia Despres is a freelance writer.
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