Shana Glenzer explained in a new interview with Fox Business how Twitter Inc (NYSE:TWTR) hashtags can be the new vehicle for advertising.
Speaking with Stuart Varney, the SocialRadar.com social marketing VP was asked how this “#hashtag advertising” works as people in the advertising industry are talking about companies doin the “hashtag route” as well as the “TV route”. The interview comes as the 2014 FIFA World Cup is about to commence in Brazil.
According to Glenzer, given that there are few advertising opportunities during these long football games, companies will be competing with each other to get their hashtags trending on Twitter Inc (NYSE:TWTR). It is a way, the expert said, for the companies to get people to engage with them.
Varney commented, however, that Twitter Inc (NYSE:TWTR) is only the vehicle for hashtag advertising but no money ever directly flows to the company as other organizations use their platform for promoting their products and services. Glenzer reacted by saying that though Twitter Inc (NYSE:TWTR) does not directly get money in some cases, there are companies that pay for their hashtags to trend. “There’s revenue to be made [for]Twitter with these hashtags,” she told Varney.
Glenzer was then asked about celebrities and social media stars and how they make money by tweeting to promote products. Varney also pointed out that while these people are making a ton of money by promoting via Twitter, the company itself does not make money from companies getting celebrity promoters to tweet about their products. Glenzer said that even if there is no direct income for Twitter Inc (NYSE:TWTR) because of this, it’s still good for the company. She explained:
“Twitter may not be getting money from those entertainers but listen, people come to Twitter because they have access to Hollywood stars, to musicians that they didn’t have. Even on a Facebook page, they’re just following someone passively. On Twitter, these celebrities are sometimes tweeting them back directly and that is good for Twitter. They have more and more folks coming to Twitter to engage with their favorite celebrities, with their favorite musicians…That’s another reason that Twitter can try to encourage growth in this market.”
Watch the full video below where Glenzer also talked about Uber and Twitter valuations:
Investors in Twitter includes Eric Bannasch’s Cadian Capital which had 570,000 shares in the company by the end of March. Another investor is Chase Coleman and Feroz Dewan Tiger Global Management Llc which had 500,000 shares valued at $23.33 million by the end of the first quarter.