Twitter has revamped its ad pricing model to compete with Facebook, letting advertisers specify which action they wish to pay for, such as downloading an application.
The fee structure is likely to boost ad prices as target audiences receive more attention and Twitter can appeal to small and mid-sized businesses.
If successful, the move could lead to increased ad prices as competition for targeting certain audiences heats up.
Under the current system, Twitter gets payments if a user interacts in any way with its sponsored ads, which look like tweets and appear in the main content feed. That includes retweets, replies, “favourites” and clicks.
In the next few months, Twitter will introduce the ability for its advertisers to specify exactly how they want to spend their money.
For example, a high street clothes retailer may choose to pay Twitter only when a user clicks through to its website to view an autumn collection.
Other options include paying specifically when an advertiser gets new followers, has its app downloaded, or gets a user’s email address.
Facebook already offers media-campaign options across its own network, for example, whereby advertisers can choose to pay for specific actions such as app installs, clicks or likes.