Showing posts with label advertising. Show all posts
Showing posts with label advertising. Show all posts

Thursday, November 11, 2010

The Secrets Of Successful Advertising

Did you know that a single advert, properly targeted, with the right headline and offer, costing say 200, can bring returns of perhaps 1000% or more within days? Advertising can be one of the most cost effective ways to generate new enquiries. Or it can be a complete waste of money. What makes a successful advert? Quite simply - one that gets results.

By Melina Abbott

I was reminded this week of Sir Alan Sugar’s comment “I have written books on advertising - Cheque Books” which probably sums up most business owners experience of advertising.  It’s expensive!
Does it work?
Well, did you know that a single advert, properly targeted, with the right headline and offer, costing say 200, can bring returns of perhaps 1000% or more within days?
Advertising can be one of the most cost effective ways to generate new enquiries.  Or it can be a complete waste of money.
What makes a successful advert?  Quite simply - one that gets results.
I advocate that EACH advert has to be accountable - i.e. if you place an advert it must do one of two things:
1. Make a sale
2. Get someone to contact you to find out more
And, if your advert doesn’t do either of those you are wasting money.
Take a look at most adverts.  They are all very similar.  They have a big headline (usually the company name), a great logo, they list the products or services on offer, there might be a photo or two, maybe a strap line - something like “you can always be assured of a great service”, “a superb range”, “free quote”, etc
Have a look at your local newspaper now - am I right?
I know that most of these adverts do not work.  I know that, because when my clients start to monitor where their enquiries come from, they realise that most of their new enquiries are through referrals or from the sign writing on their vans.  The sales they do get from the newspaper or magazine advertising do not even cover the cost of the adverts - let alone make a profit.  Now, I’m not advocating that you go out and cancel all your adverts.  However there are some simple steps you can take to make your advert more effective:
1. Before placing your advert, decide what you want your prospect to do.  Do you want them to: buy something from you, call for more information or visit your website?  An advert which is trying to sell something will be very different to one simply asking a prospect to call for more information.
2. Your entire advert should be devoted to getting your prospect to take the next step.  You need to give them all the information they need to do so.  If you want the prospect to buy something you need to highlight all the benefits of your product or service, and overcome all the likely objections so that they can make an informed decision.  Won’t it be too wordy? Well, would you tell a sales person to go and visit a prospect and say you’ve got 20 seconds to persuade this person to buy your product?  No, of course not, you wouldn’t put him or her under that much pressure.  So why put yourself under that pressure in trying to sell something in a tiny advert.
3. People do not buy newspapers or magazines to read the adverts - they buy them for the news and articles.  The more your advert looks like an editorial feature - the more it will be read.  So disguise your advert - make it look like a news article.
4. Try a 2 step approach.  Advertising can be very expensive - so don’t even attempt to sell in a tiny advert - offer your prospect some free information in exchange for contact details - e.g.:
Homeowners Decorating Guide.  For your FREE guide to choosing colour combinations of paint, tiles and wall paper Visit www…
How to sell your house faster and for more money?  Call 0800 ... for your free report and audio CD.
Then, when you send your free information - include your sales literature detailing all the benefits of your product or service.  You now have a qualified lead and have plenty of time and opportunity to follow up and make a sale.
5. Have a compelling headline - your company name is not a headline - people don’t care what you are called or how long you have been in business - they just want to know what you can do for them.  Your headline should be the biggest benefit you offer prospective customers.
6. Test & Monitor each and every advert you run.  Most businesses don’t monitor their adverts or sales promotions - they continue to run the same advert over and over - regardless of whether it pulls for them.  Did you know that a change in headline has been tested to increase the response of an ad by up to nineteen times?
7. Once you’ve found an advert which works continue to run it until it stops generating a profit.  Don’t stop it just because you’re bored with it and want to change it.  Remember that you may see your advert every day - but your prospects are seeing it for the first time.
There you have it - 7 steps to successful advertising.  Good luck.

Thursday, September 23, 2010

Knowing The Difference Between Marketing and Advertising

Any online business will surely get a taste of success with the right Internet marketing and advertising tactics.

By Valerie Parson

Advertising and marketing are two different words with two different meanings, but more often than not, they are used interchangeably. For a person who has a limited background on Internet marketing or even on marketing alone, the two words can be connoted as one and may even be understood as two words with no difference at all. If you want your business to be on the right track, you need to differentiate one from the other.

What Is Advertising?
Advertising is a common yet effective way to market a particular product or service. It is one of the essential aspects of marketing wherein a sponsor pays the services of an advertising firm just to promote or popularize his product or service to reach as many target clients as possible. The advertisers simply endorse the product for mere purposes of endorsing the product and is no longer concerned of its outcome or if it would gain the intended sales and profit of the sponsor for as long as it was able to deliver its advertising job. Advertising can have the following medium:
* Direct mail
* Newspapers and broadsheets
* By using billboards
* Internet
* Radio
* Through the television

What Marketing Is
Marketing is looking at a particular business on a larger scale. Marketing largely focuses on strategies in making a particular business a successful one.
It involves various aspects that operates independently but has to work together with the other marketing elements to achieve a wider and a much bigger goal. The usual marketing goal is to determine which product or services is suitable to particular target clients, what strategies can be effective, and how the company would develop and grow through these strategies. Some of the most essential elements of an effective marketing involve any of the following:
* Advertising
* Customer satisfaction support
* Sales strategies
* Product and service pricing
* Market research
* Economic analysis
* Distribution of products
* Public relations
* Involvement of community
* Media planning strategies

Applications of Marketing and Advertising
Marketing and advertising are both useful in making a particular business a hit among its intended clients and the public.
In general, a business cannot, in one way or the other, survive without the two. By mere smiling or saying “good morning” to a customer is already a marketing strategy, while a mere mentioning of a product in a social gathering can be a form of advertising. In essence, marketing and advertising can be applied anywhere at any given time as long as there is a need to sell a product or patronize a service. One of the most in-demand forms of marketing nowadays is the so-called Internet marketing where all the benefits of Internet technology are applied to come up with an effective advertising and a successful marketing process. Some of the benefits of Internet marketing include the following:
* Provides immediate response for product concerns
* Fast exchange of communication between clients and service provider
* Convenient and hassle-free commercial transaction for both parties
* Inexpensive access to products
* It provides measurable outcomes and outputs.
* Traditional working hours are not followed.

If you plan to succeed in your online business, having a good grasp of Internet marketing and knowing the difference between advertising and marketing will give you a healthy jump-start. Know how your business can get ahead with the tough competition online.

Thursday, September 2, 2010

Promotional Products Get Your Logo Seen

Promotional products like pens, hats, mugs and water bottles, are better than traditional advertising because they can be targeted to a specific audience. Also, people tend to keep most promotional products for about a year, which means your corporate logo will be seen more often for less money.

By Julie Austin
Copyright (c) 2010 Julie Austin

Promotional products are usually useful and unique things that most people would use anyway. If they have a corporate logo on them then more people see the logo.

With promotional products you know which people got them because you control the distribution. An ad might not always get to the audience you’re targeting. Your customers will be more likely to keep your promotional product around if it’s something they would use anyway.

Your customers will remember your name if they see it on a product that you give them. Think about how many times you’ve worn a T-shirt or hat that has a company’s logo on it. The more you see a logo on a promotional product, the more likely you are to remember the name of the company. Advertising will also get you to remember a corporation’s name, but it’s much, much more expensive to have to constantly advertise. A promotional product does the same thing for a fraction of the price.

Over 50% of people keep their promotional products for over a year. Your logo is being seen over and over again. The more it’s seen, the less the actual cost is to you in the long run.

Choose promotional products that have long-lasting value and are products your customers would be interested in. Imprinted golf balls or golf bags would be a good thing to give to your customers who are golfers. Whenever they use the printed golf balls they will remember you fondly. People who are coffee drinkers would use a mug every day, and if it has your logo on it they will be seeing your logo constantly. Calendars with your name on it are a good product to give customers because they will keep it around for at least a year.

Offer your customers unique promotional products that they wouldn’t be able to find themselves. Something unusual and useful will stand out in their mind and they will associate your company name with it. It’s more likely that customers who receive promotional products will place bigger orders.

Promotional products allow you to target your advertising to a specific group for less money.

Julie Austin is the inventor of swiggies, wrist water bottles for runners. They are hands-free, hold 11 ounces of water or sports drink, and can also be frozen to lower body temperature. http://www.swiggies.com

Thursday, July 29, 2010

Set Up A Time Sensitive Database To Grow Your Sales

If your prospect will need to purchase your service or product tomorrow and you call him today good things happen. The most important of which is his belief in your opinion of the importance of his issues (hard sentence, important point). You knew he would need you tomorrow and you called today. That's the company he wants to do business with!


By Thomas Anthony

When I stop at the traffic light and the man approaches me saying “Hey buddy, wanna get her some flowers?”, I just close the window. I have absolutely no reason to talk with that man today and I really wish he would leave me alone. But……. when he came over to my car the day I was going to see my girlfriend and apologize…. well that’s another story! I quickly paid his $20.00 and said “thank you” with a truly genuine tone.


“The squeaky wheel gets the grease”. Truer words have never been spoken and understanding how that phrase applies to your business is absolutely mandatory! Squeek at the right time and get even more grease! Your company may be the strongest, most professional, most experienced and most capable player in your market for a particular task, but if you are the only person that knows that information…. well… you get the idea.


Every business needs to advertise to grow and establish a client base. Always remember your client base is where your consistent cash flow and your referrals come from. Whether it’s signs, uniforms, print, radio or Internet advertising, telemarketing or direct sales, you need to do something to fuel your business. Telemarketing is the subject of this article, so I’ll touch on it here.


The brief overview of a telemarketing effort would be the understanding of who you are, what your immediate goals are and exactly who you should communicate that information to. As an example, if I were to be cold calling from a list of Facility Managers:


“Good morning, my name is Thomas Anthony and I’m with Facility Support Services. We are commercial cleaning vendors and I’m interested in competing for the cleaning business with your company. Who would be the person I need to speak with?” I wouldn’t offer any other information, unless asked, until I connect with their decision maker. When I do connect with the decision maker I would repeat the above sentences again to him/her followed by:


Are your cleaning requirements re-evaluated and bid annually or only as necessary? Their answer to that question gives you your action date. Forward them a little information about your company and add their information to your time sensitive prospect file. Their contract isn’t available for bid right now, so taking too much of their time now would be annoying and unprofessional (like the guy with the flowers). Set an approximate date with them for your follow up call (never more than 60-90 days), thank them for their time and send a follow up thank you letter/e-mail including brief company information. If your company has a strong client base, include it as footer to most of your correspondence.


A time sensitive database of all the prospects in your area is an incredibly valuable tool. Your time is much better spent, and your closing ratio is substantially greater, when you are sharing information about your company’s abilities with a decision maker at the time their looking for it (again the flowers). Every contact you have should reside in this database and you should check and update it daily. Soon it will be directing you towards new business and new cash flow streams. Try to include every prospect with a short “he said-she said” in the database to refresh your memory as necessary. Always remember the rule of SW:


SW: some will


SW: some won’t


SW: so what!... next! … and pick up the phone again.


Good luck with your prospecting!


Mr. Anthony’s service industry websites include: Facility Support Services and Staffing Tracker

Monday, April 19, 2010

Simple Ads That Made Mini 'Fortunes' Why Not For You Too

Writing ads is a skill that most haven't a clue about. Marketing agency people are the worst at it. Most advertising freelance consultants stumble their way through it all. But, done right, it can open the profit floodgates for you.

By Nick James

Writing ads is a skill that most haven’t a clue about. Marketing agency people are the worst at it. Most advertising freelance consultants stumble their way through it all. But, done right, it can open the profit floodgates for you.

Below are ‘little ads’ that caused big impact. Study them. Pull them apart. Look at the underlying architecture behind them. For when you do, you’ll develop the essential mindset necessary for creating your own mini- blockbusters.

1. MILLIONAIRE CONSULTANT SEEKS INVENTORS, MANUFACTURERS, IMPORTERS, AUTHORS, ETC WITH UNIQUE PRODUCTS SUITABLE FOR PROMOTION TO HOMEOWNERS, DO-IT-YOURSELFERS, GARDENERS, AND HOBBYISTS. SEND YOUR INFORMATION IN CONFIDENCE TO…

This ad was run once, on a Sunday, in the business section in a two inch box.
Results. 280 people replied. And, it was followed by a complete deluge of business and profits.

2. EVEN THE GREATEST FINANCIAL PLANNER IN THE WORLD WILL GO BROKE WITHOUT A CONSTANT STREAM OF CLIENTS. FOR FREE REPORT, PLEASE CALL…

This 138 quid ad has led to sales over the years, that has gone into the millions, literally.

3. HOW TO MAKE £4000 SITTING AT THE KITCHEN TABLE IN YOUR UNDERWEAR. CALL 24 HOURS FREE RECORDED MESSAGE LINE…

This ad was syndicated and licensed around the world and made JEFF PAUL a millionaire many many times over.

Lastly, an ad that’s a little divergent from the norm of things around here, but I thought you’d be intrigued to read advertising copy at its best.

4. SINGLE BLACK FEMALE SEEKS MALE COMPANIONSHIP, ETHNICITY UNIMPORTANT. I’M A VERY GOOD LOOKING GIRL WHO LOVES TO PLAY. I LOVE LONG WALKS IN THE WOODS, RIDING IN YOUR 4X4, HUNTING, CAMPING, FISHING TRIPS, COSY WINTER NIGHTS LYING BY THE FIRE. CANDLELIT DINNERS WILL HAVE ME EATING OUT OF YOUR HAND. RUB ME THE RIGHT WAY AND WATCH ME RESPOND! I’LL BE AT THE FRONT DOOR WHEN YOU COME HOME FROM WORK, WEARING ONLY WHAT NATURE GAVE ME. KISS ME AND I’M YOURS. CALL XXXXXXXXXXXXX AND ASK FOR DAISY.

15,000 (fifteen thousand!) replied to that advert (for a dog).
Enough said.


There are a few resources that help you create the best ads you can possibly write. My most recommended book is by one of the kings of copywriting, John Caples. His genius book TESTED ADVERTISING METHODS, is still applicable today.

Although Caples was born in 1900 and lived on till 1990, he is still considered one of the all time great copywriters. Caples mentions that he has seen one advertisement sell 19 ½ times as much goods as another. This statement dramatises the difference between good ads, and those that are simply bad.

The true power of words and the impact they can have is what makes savvy marketers, rich and the desperate, non-clued marketers, struggle. Master this most precious of skills.

Nick James is a true example of a self made success. He offers the inside track in every aspect of internet business creation and development. Right now he's giving away a Free Income Secrets DVD for only £1 S&H while stocks last! Free Nick James DVD

Tuesday, March 9, 2010

Business Gifts That Send a Message

Business gifts fall into the area of marketing that is fun to work with. There are hundreds of thousands of choices, each of which can carry your company or product imprint to extend the reach of your marketing campaign. Take a quick look around any office and chances are you will be able to view several imprinted items.

By Bob Ryan

Business gifts fall into the area of marketing that is fun to work with. There are hundreds of thousands of choices, each of which can carry your company or product imprint to extend the reach of your marketing campaign. Take a quick look around any office and chances are you will be able to view several imprinted items. There may be a mug on a desk, or calendar on the wall, proudly displayed and carrying an imprinted message from a company that person has visited, worked with, or purchased from.

Some items are seasonal, like calendars, while others, like the mugs, are timeless. When creating your imprinted message for your business gifts, take a moment to consider if timeliness is an issue. You can do a generic company imprint, or a dated one, depending on the situation and events surrounding the business gift presentation.

Some business gifts are used to thank new or valued clients for their business, to seal a deal, open communication lines, or just to maintain contact. There are pop up calendars that you can mail out, that are fun to put together like a puzzle, but also attractive enough to find a spot on your client’s desk. Some business gifts are more expensive, individualized items, like laptop bags, desk sets, or glassware.

Business gifts can be bigger, and more costly, because they are usually meant for a smaller, but very important audience. They may be presented to those who can make the difference in your company’s success or failure, so take some time to really go through the gift catalog to select just the right one for your marketing objective.

The return on your efforts should be measurable. Business gifts are an important part of your advertising budget. Part of the value of these business gifts lie in their goodwill value, to keep your company and your salesperson in the mind of the recipient. The imprinting will assist this effort, and last as long as the item lasts. They are a subtle reminder to your client of your thoughtfulness, and they keep your message prominently displayed.

We are a site dedicated to helping you and your business market and brand yourself through the use of promotional products.

Friday, February 5, 2010

Free Business Card Design Tips

Is your business card an ineffective necessary business expense or a valuable addition to your marketing arsenal? How about a business card that actually generates business, a lot of business!

By Patrick Gunning

Why free business card design tips?

To make a point! Free offers attract Customers and keep their attention!

But how does that apply to business cards? Shouldn’t business cards give customers the contact information about your business!

Wrong! Business cards should give your customers a reason to remember and use your business, if not it will end up in the trash!

What would you rather have?

A business card that tells customers how to reach you…
Or… a business card that seduces new customers and referrals to your business?

Free offers – Discounts – Yes, Coupons are still the most effective advertising tool ever designed and you probably already use them!

The best free business card design tips are a headline, an offer and an address, that’s all you need! No doubt you’ve seen those punch cards handed out by sandwich shops, ice cream parlors or the dry cleaners. In fact, you might even have one in your own wallet. These business cards did the trick, they kept you coming back!

Most businesses never think that their business cards could and should use the same technique! It works like magic! You’ll see them in the car, on the refrigerator, at work on the desk, but not in the trash!

Think of your business cards as personal sales ads instead of information!
Simple phrases like “call now for _____”, “with this card, buy one get one free or “this card is good for _____” can out-perform any standard business card and multiply the amount of business per dollar spent.

Most importantly, every time you hand out the business card, verbally make the offer. Tell your prospects exactly why they should keep that card handy. If you’re handing out cards to your targeted market you’ll be amazed at the response you get.

Oh… dump that slogan and replace it with a headline. Promote a benefit that your company offers over the competition - maybe a guarantee, your superior selection, your promptness your hassle free techniques or your price match policy.

We’re not done with your free business card design tips. You know the benefit that your customers respond to the most. That’s what you want to print directly below your company name. It’s what they want and it’s what you deliver!

Your business card is an advertising investment that should reap a return! Imagine how you’ll feel when you start to see those little wrinkled up cards in the hands of your new customers!


Note from Small Business Advice Daily:
1,000 color, double sided, high gloss, 14 pt (very firm) business cards for as low as $29
www.StoneColdMarketing.com

Friday, November 27, 2009

Calculate Your Ad Budget

Before you pour money into advertising, figure out exactly how much you should spend.

By Roy H. Williams

Q: I've never really done much advertising for my business; I've always relied on networking and word-of-mouth. Now I'd like to launch a small campaign, but I'm frightened it will cost a lot of money. How can I figure out where to start?

A: The first thing you must do is calculate your minimum and maximum allowable ad budgets:

Step 1: Take 10 percent and 12 percent of your projected annual, gross sales and multiply each by the markup made on your average transaction. In this first step, it's important to remember that we're talking about gross markup here, not margin. Markup is gross profit above cost, expressed as a percentage of cost. Margin is gross profit expressed as a percentage of the selling price. Sell an item for $150 when it only costs you $100, and your markup is 50 percent. Your margin, however, is only 33.3 percent. This is because the same $50 gross profit represents 50 percent of your cost (markup,) but only 33.3 percent of the selling price (margin.) Most retail stores in America (carpet, jewelry and so on) operate on an average markup of approximately 100 percent, some operate on as little as 50 percent markup and others add as much as 200. More expensive items, such as cars, recreational vehicles and houses, typically carry a markup of only 10 to 15 percent.

Step 2: Deduct your annual cost of occupancy (rent) from the adjusted 10 percent of sales number and the adjusted 12 percent number.

Step 3: The remaining balances represent your minimum and maximum allowable ad budgets for the year. At this point in the calculation, you may learn that you've already spent your ad budget on expensive rent, or you might also learn that you should be doing a lot more advertising than you had previously suspected.

Now let's calculate an ad budget. Assume that my business is projected to do $1 million in sales this year, I have a profit margin of 48 percent, and my rent is $36,000 per year. The first thing to do is calculate 10 percent of sales and 12 percent of sales ($100,000 and $120,000, respectively).

Second, we must convert my 48 percent profit margin into markup, because markup is what we've got to have to make this formula work. Most business owners know their margin by heart, but never their markup. To make the conversion from margin to markup, simply divide gross profits by cost. Dividing $480,000 (gross profits) by $520,000 (hard cost) shows us that a 48 percent margin represents a markup of 92.3 percent. Bingo.

Now we multiply $100,000 times 92.3 percent to see that our adjusted low budget for total cost of exposure is $92,300. Likewise, we multiply $120,000 times 92.3 percent to get an adjusted high budget for total cost of exposure of $110,760. From each of these two budgets, we must now deduct our $36,000 rent. This leaves us with a correctly calculated ad budget that ranges from $56,300 on the low side to a maximum of $74,760 on the high side.

Most advertising salespeople will tell you that "5 to 7 percent of gross sales" is the correct amount to budget for advertising, but don't you believe it. It simply isn't possible to designate a percentage of gross sales for advertising without taking into consideration the markup on your average sale and your rent. Yes, expensive rent for a high-visibility location is often the best advertising your money can buy, since a business with a good sign in a high-visibility location will need to advertise significantly less than a similar business in an affordable location. To prove this, just look at the example above and change the rent to $75,000 per year. In this case, the ad budget would range from $17,300 to $35,760, representing just 1.7 to 3.5 percent of sales. The formula I've given you is the only one that reconciles your ad budget with your rent as well as the profitability of your average sale. Good luck!

Monday, November 16, 2009

Find a 'Tweet' Deal on Advertising

Banner ads aren't the only way to advertise online; take advantage with these affordable alternatives.

By Lydia Dishman

The first question you must answer before launching an advertising campaign for a new business, product or service is: "Who is my audience?" Once you determine your ideal customer, you can go on to produce successful, targeted ads.

Social networking as an advertising tool is a new trend, but it’s expected to represent more than 20 percent of advertising overall by 2014, according to recent studies. And Twitter is poised to lead the pack.

"Most advertisers are interested in reaching more prospects, especially new audiences, and getting direct return on investment," Brian Carter, founder of TweetROI says. "Twitter is a new place to [do that]. People are already talking about all kinds of things on Twitter--people who need what small businesses offer.

"TweetROI is one of a small but growing group of emerging platforms that leverage Twitter as a low-cost medium for companies to place ads that reach very specific targets. Basically, a business buys into the service and offers a cash incentive to those who tweet its ads. Each platform has unique features and benefits, so it's up to entrepreneurs to decide which suits their business best.

Carter believes social media has the potential not only to help entrepreneurs target consumers more effectively, but also to bring in bigger returns by taking a larger bite out of that web-based pie.

TweetROI
Businesses send TweetROI their suggested text and a link, then choose campaign settings such as how much they will pay per tweet, a maximum number of tweets, how often they can go out and how long the campaign will run. There’s a function for advanced bidding that allows businesses to pay more or less depending on the tweeter's influence and viral potential. According to TweetROI's website, Twitter users recommend stuff they like in their own words.

"Businesses should both build their own Twitter accounts and advertise via pay-per-tweet,” Carter says, noting businesses can expect a faster ROI from their TweetROI investment than their social media labor hours.

"Pay-per-tweet is cheap compared to existing online advertising channels." Carter says. "TweetROI averages $3 per tweet and its average cost per click comes out to about 50 cents." He recommends that small businesses start with $500 a month to test the service. "It's critical that sufficient web analytics are in place to measure the conversions and revenue that come from pay-per-tweet," he adds.

adCause
Founded by Andy Arnott, a startup veteran, this service is designed to appeal to users who want to make money on Twitter and share that money with causes they are passionate about while promoting socially conscious advertising. AdCause allows both tweeters and businesses to suggest charities and to make donations directly to charities through PayPal.

Businesses that want to advertise can match their ads to tweeters by searching by name, location or number of followers. Tweeters control which ads appear; if they select a network option, only businesses that match their subject matter will display. Then it's click to purchase via PayPal, or to negotiate a better deal. The message will automatically appear on the Twitter stream of the chosen person when the transaction is completed. Campaigns start as low as $1, but Arnott suggests an initial investment of $100 to test the waters.

Sponsored Tweets
Brainchild of Ted Murphy, CEO and founder of IZEA, Sponsored Tweets lets companies see the potential impact of each tweeter by offering a graded profile based on the tweeter's number of followers and how often that tweeter engages in conversation. The service also allows tweeters to manually select companies whose ads are most relevant to their personal preferences. Though Sponsored Tweets gives businesses a how-to for suggesting content, tweeters are free to write the content themselves.

Murphy, like Carter and Arnott, recommends starting a campaign with a few hundred dollars--Sponsored Tweets start at 50 cents to $1 CPC. "Remember, it's not all about clicks," Murphy says, "Engage a broad range of people with large and small audiences. Pick the best performers and re-engage those people in future campaigns."

The service is also appropriate for building buzz, Murphy says, adding "I would use the tool to build followers and anticipation prior to launch."

Twitter offers a kind of word-of-mouth marketing that works, Arnott says. "It's a perfect fit for companies looking to form a lasting relationship with their customers. By engaging users with relevant ads, companies are not only building their brand but engaging their customers in a relevant dialog."