Tuesday, March 3, 2009

Adjix2Twitter Embed Ads

We introduced a new advertising format today specifically designed to pay Twitter users who embed an ad at the end of their Twitter tweets. Payment is based on the number of followers that a Twitter user has and how much an advertiser is willing to pay for an embedded ad. We anticipate the payout from this new format will eclipse our current link shrinking ad program.

The new ad format, called Embed Ads, embeds an optional ad directly into a tweet - at the end. The ad is separated from the tweet by a blank line and the word "Ad:" - the former only shows up in SMS text messages (screen shot).

A short video demonstration of Adjix2Twitter used with Embed Ads is available here: http://adjix.com/ddew

Advertiser Info
Adjix allows advertisers to create two different types of ad campaigns. One ad campaign, called the Embed Ad Campaign, allows ads to run inside Twitter tweets. The other ad campaign which Adjix has offered since its launch in August 2008 is called the Link Shrink Ad Campaign and it allows ads to be attached to shortened (shrunk) links.

1. Advertisers can target all Twitter users or only certain Twitter users to run their ads. For example, an advertiser might only target Twitter users in certain cities or Twitter users who tweet about specific interests.

2. An advertiser may set an embargo frequency meaning that once a Twitter user embeds a specific ad, they can't rerun that same ad until the embargo time period has passed. However, the ad will be available to other Twitter users.

Advertisers can create simple Adjix Embed ad campaigns by logging into their Adjix Advertiser Account. Funds added to an advertiser's account can be used for either the Twitter Embed ad campaign or the Link Shrink ad campaign.

Advertisers set the price they are willing to pay for a Twitter user to tweet their ad. The price they set for their ad is multiplied by the number of followers of the Twitter user tweeting their ad. For example, an Advertiser who sets their ad's price at $0.001/Twitter-follower ($1 CPM) would pay $5 each time a Twitter user, with 5,000 followers, tweeted their ad. Advertisers get to see the contents of each tweet when their ad is embedded.

Twitter User (Linker) Info
Adjix users using Adjix2Twitter (also called Linkers on the Adjix website since they're usually including a link in their tweets) are presented the highest paying ads, first. However, not all Twitter users qualify for every ad - there are several reasons for this:

1. Some Twitter users may be excluded by advertisers based on region or content. (It doesn't make sense for a local, N.Y. pizzeria to have their ads run by a Twitter user who lives in Japan and tweets in Kanji).

2. Some Twitter users may encounter ads that are embargoed meaning that once they send out an ad they may have to wait a period of time before they can resend it. However, during the embargo period, the ad will be available to other qualified Twitter users.

3. A Twitter user with many followers may be beyond the budget of an advertiser. For example, a Twitter user with 100,000 followers would not have an opportunity to run an ad from an advertiser paying $1 CPM if the advertiser has less than $100 remaining in their Adjix advertiser account.

Twitter users earn revenue from Adjix based on the ad price set by the advertiser multiplied by the number of followers that Twitter user has. For example, if a Twitter user, with 1,000 followers sends out a tweet with an ad with a pays out $0.0005/follower ($0.50 CPM) then that Twitter user would earn $0.50 for that tweet. Earnings from links and earnings from Embed Ads are tracked separately in each Linker's account.

Installing the Adjix2Twitter Web Browser Bookmarklet/Plug-in
You'll need to log into your Adjix Linker account in order to get your customized Adjix2Twitter Bookmarklet. The Adjix2Twitter Bookmarklet (sometimes referred to as a plug-in) can be dragged and dropped on your web browser's toolbar in Firefox, Safari, and Chrome. It also works in Internet Explorer, but, you may need to right-click on it to save it instead of dragging and dropping it on your toolbar.

Here's a short video demonstrating how to install your Adjix2Twitter Bookmarklet (plug-in) for Firefox, Safari, Chrome, and Internet Explorer :

Is there really enough room in a tweet for an ad?
Yes! Damon Cortesi, from TweetStats, was kind enough to share some private stats with me regarding the average length of a tweet. For example, Guy Kawasaki [*See disclaimer below], who has sent out close to 20,000 tweets since joining Twitter in August 2007, averages about 35 tweets/day.

Damon tells me that Guy's average tweet length is about 71 characters long or, just about half of the allowable 140 character limit.

The main Twitter account used by the NY Times, which seems to be the leading news organization that "gets it" when it comes to Twitter, also averages about 70 characters per tweet. The NY Times sends out about 40 tweets/day for a total of nearly 30,000 tweets sent, since they joined Twitter almost two years ago.

While these two Twitter "power users" only represent a small sample, it's clear that most tweets don't come close to maxing out the 140 character limit. This unused space is the perfect place for an ad. With Adjix2Twitter Embed Ads, Twitter users can see exactly what the ad will say, how much it will pay out, and whether it will fit inside their tweet before it's sent.

Advertising Opportunities Abound
We see many possible uses for Adjix Embed Ads; but, at the top of the list are news organizations. Currently, newspapers and magazines receive a large chunk of their revenue not from paying subscribers but, rather, from advertising. Now, a news organization can tweet out a headline with a link to the full text of the article followed by an Adjix Embed Ad, all in a single tweet.

Do we really need more ads?
Ads are like rainy days - no one likes them but we need a little from time to time.

Over the past decade, as the cost of delivering timely, relevant, content became cheaper, people have been less willing to pay for it. This has created many challenges in the publishing world as this industry tries to reinvent themselves since more and more people now get their news online than from print. I often joke that a newspaper is a hard copy printout of the Internet with yesterday's news. Newspapers who now think of themselves as online news outlets that happen to publish a newspaper have a much better chance of surviving compared to companies who simply think of themselves as a newspaper that happens to have a website.

Adjix is venturing into new territory with our Embed Ads. As we stick our toe into the water, we anticipate new opportunities and challenges. Do not hesitate to contact me with your comments or questions.

Joe Moreno
6965 El Camino Real
Suite 105-530
Carlsbad, CA 92009
Follow us on Twitter: http://twitter.com/adjix

* Disclaimer: Many people have asked Guy Kawasaki what his interest is in Adjix. As Guy has mentioned several times (and, for the record) he has no interest in Adjix other than he's an avid user of Adjix2Twitter. When Adjix launched, we were very fortunate that he tweeted about our launch and new features. He has blogged about us a couple times here and here. Last week, he reiterated his love for Adjix when a security issue was discovered. Obviously, we're very thankful for his attention. Guy is a true enabler of entrepreneurs.