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Twitter Is Losing to Facebook By Focusing On the Wrong Thing

Twitter's new objective-based campaigns Source: Twitter

Twitter aims to change that with its new ad-pricing structure. SMBs are attracted to results-based pricing because it gives them a much clearer view of their projected advertising return before they sink their entire budget into a campaign.

While the new ad-buying tools may help convert more businesses already on Twitter into advertisers, it's not clear whether it will increase the total number of businesses on Twitter. If management can show more successful cases of small businesses advertising on Twitter, perhaps more businesses will move to the platform.

Connecting, not informing

The best ads are those that connect with the audience. Facebook plays up its ability to "connect everyone" -- it's one of its three biggest goals -- and businesses love it. The funny thing is, Twitter has just as much ability to connect people, if not more. Twitter makes public figures and businesses quickly and easily available to the public.

Yet if you listened to Twitter's earnings call, you'd notice that it was devoid of mentioning how Twitter can connect people. That's in stark contrast to Facebook, where "connect" is an essential part of the vocabulary. If Twitter wants to win more advertisers, it needs to copy more than ad-pricing tools from Facebook; it needs to copy Facebook's focus on connecting people.

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The article Twitter Is Losing to Facebook By Focusing On the Wrong Thing originally appeared on Fool.com.

Adam Levy owns shares of Apple. The Motley Fool recommends Apple, Facebook, and Twitter. The Motley Fool owns shares of Apple and Facebook. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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