Dive Brief:
- At least for now, any marketers wanting to purchase a “Promoted Moments” ad will have to shell out $1 million for a bundle that includes the Moments ad as well as a “Promoted Trend,” according to sources who spoke with Digiday.
- Although many brands are hesitant to pay the hefty Moments ad entry fee, Starbucks, REI and Verizon were all early adopters with Promoted Moments ads.
- Industry insiders see the Promoted Moments bundle as a limited offering and expect Twitter to roll out new ad options in 2016, including interstitial videos and shopping buttons.
Dive Insight:
Twitter values its Promoted Moments ads highly – they are only available as part of a $1 million bundle with a “Promoted Trend.” Historically Promoted Trends have cost around $200,000.
The micro-blogging site also changed the layout of its mobile app, placing the Moments icon where the notifications icon previously resided, a move that potentially will encourage accidental visits to Moments from users trying to see their notifications.
About the Moments ad costs, one entertainment advertiser told Digiday, “$1 million was the price on the table. It was a bundled price — you had to buy the Moment as well as a Promoted Trend and media in Twitter. We haven’t done it yet as we need the price to come down.”
Ad placements on social are not typically cheap. For example, ad placements on Snapchat start at $100,000, a figure actually down from $700,000 just last year, according to sources with knowledge of the matter who spoke with Venture Beat.
And marketers are willing to pay high premiums for a chance to reach targeted audiences.
"The Moments platform makes sense to me. ... They still give brands lots of organic reach if they build an audience," an unnamed ad executive told Digiday.
