What the Twitter takeover means for brands
With news of leading auto, retail, beer, and non-profit brands pausing or outright forgoing their Twitter marketing strategies, it’s worth considering what long-term implications are in store for marketers. Comperemedia Omni, with its daily updates on marketing shifts and media spend, provides quick insights into how brands are currently reacting within Financial Services and Insurance.
What we’re seeing
Across Financial Services as an industry, there’s been a 66% Y/Y increase in paid Twitter spend in October, plus a 24% YTD Y/Y increase in paid Twitter spend. Insurance, however, is a different story, with an overall 84% Y/Y decrease in paid Twitter spend in October, paired with an 11% YTD Y/Y decrease in paid Twitter spend. Yet, reports are also saying that overall user growth is at an all-time high, as people are curious to see just how this takeover will turn out. So what’s actually going on?
Why timing is everything
When it comes to Financial Service brands, the current marketing efforts are likely due to pre-planned campaigns that happen to coincide with the recent change in leadership. However, we could see a unique window of opportunity emerge. If the bigger FSI brands were to exit Twitter, it would level the playing field. This could lead to less expensive CPMs, given potentially less demand. Meaning starter and fighter brands alike have a chance to be better heard if they’re willing to stay active in the channel.
When it comes to Insurance, the Twitter fallout coincides with other marketing trends occurring in the space. Right now, a lot of insurance companies are pulling back on growth, and hence, advertising as they try to deal with rising claims costs. Exiting Twitter (a space where they aren’t traditionally active) could be the best and easiest route considering the Elon Musk controversy. Additionally, with advertising being super competitive among the top 10 insurers, small carriers rely on either agency forces or local advertising. If a smaller player were to invest in social media advertising, they’d likely start with brand awareness channels, like Facebook and Instagram, with the limited advertising budgets they already have.
Even so, the true test for brands willing to hold out is yet to come as consumers enter a talkative season. Midterm elections have just concluded and the holidays are about to begin. Meaning: Twitter is still going to be popular among consumers, leaving the challenge in the hands of brands.
What’s next
Though the takeover of Twitter has been loud and front and center, it is still recent. Many brands are still weighing options and deciding how to move forward. It’s also possible we won’t see the true impact on marketing spend until December, an especially tricky time as marketers look to best optimize their upcoming holiday campaigns. As more brands join the cry to leave Twitter, larger and clearer marketing shifts will emerge, making Comperemedia Omni the leading tool for the most up-to-date insights and implications.
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