Social Media Marketing Proof: Twitter Increases Sales (and Ratings)

Twitter commissioned research firm Datalogix to discover how effective Twitter was for business. After all, the social media marketing giant is making a big play to capture more ad spend. According to the report, companies that pay for tweets have more sales than those that don’t pay. People who saw a brand’s tweets spent 8% more than those that didn’t. The report also says that people who responded to sponsored tweets helped increase sales by 12%.

As a rule, less than one percent of users click on banner ads. But promoted tweets made followers of the brand 29% more likely to follow through with a purchase than those who did not see a promoted tweet.

Meanwhile NLSN (Nielsen) has reported that when Twitter is very active around a particular program the television ratings increase 29% of the time.

At present, over half of Twitter’s advertising revenue comes from mobile (total of $1 billion in revenues in 2012). So there is speculation that the company’s planned IPO will go a little better than Facebook’s botched share launch.