Yesterday I came across an old blog post someone had written about a year ago that questioned the use of Twitter parties as a social media marketing tool. The writer argued that the events tied up the Twitter stream for non-partying users. Also at issue was the effectiveness for companies. The blogger wondered if a party host could give a company tangible stats to prove that a party held gave some sort of results.

That was then and this is now. And fortunately, Twitter parties have evolved somewhat from a year ago. And they’ll keep evolving and becoming more and more useful for both the companies sponsoring them and the users attending them. Here’s why:

Cost effectiveness: I’ve spoken with many small business owners who have wanted to place ads in magazines only to discover that it would cost them thousands to do so and wasn’t in their budget. Broadcast media can be just as expensive. Pay-per-click advertising is more reasonable, but when someone clicks, are they really absorbing your company’s message or simply clicking? Maybe, maybe not. The great thing about Twitter parties is that they are low cost. You can learn to do them yourself, or have an organization like TweeParties help you for not thousands, but rather hundreds of dollars. And instead of simply posting an advertisement for someone to read or hear (or not read or hear, as they case may be), you’ll have a group of people engaged and interacting with you. People who are listening to your message might tweet about your party to their friends, and so on. How many magazine readers clip ads and pass them on to their friends?

Results tracking: In the past, it might have been difficult to track results, but not anymore. There are a number of web sites and applications that track the frequency of hashtags. Simply register your party’s hashtag in advance, and you’ll be able to see how many times that hashtag was tweeted, when it was tweeted, and what users tweeted it the most (typically the hosts during promoting phase of the event). Many hosts also do not request the e-mails of participants upon registering. TweeParties does, usually with a disclaimer that any e-mail correspondence will be limited to communications from the party sponsor and that the attendee can unsubscribe from the list at any time. In supplying a company with e-mail data from attendees, the party sponsoring the event can send a follow up e-mail thanking the user for attending, requesting that the recipient take further action (such as complete a survey) or receive a discount, special offer or product sample.

Technical issues: With any emerging technology, you sometimes hit stumbling blocks (look at the recent antenna issue with iPhone 4). Twitter is still evolving. With approximately 600 tweets per second hitting the Twittersphere, Twitter is constantly being pushed to its limits, and sometimes fails.  The blogger I mentioned above was concerned that very large parties could bog down Twitter and disrupt service for other users. Worldwide discussions about World Cup soccer bogged down Twitter; I seriously doubt a party with several hundred participants could. The only concern in the case of a party would be excessive tweeting by those several hundred participants, which thanks to Twitter’s policy of temporarily freezing accounts that tweet close to 100 tweets per hour (Twitter Jail), would be difficult to achieve. Besides, Twitter is constantly looking for ways to free up traffic. They recently announced they will expand to a large facility in Salt Lake City, Utah, in an effort to better keep up with demand and avoid outages caused by bugs. No emerging technolgy is perfect and most users understand that. Growing pains are common, but they have to be endured to grow into something even better.

I do not believe that a company should have one Twitter party and be done with interacting with its customers. It is just one piece of the puzzle, but one that I truly believe in. Social media does just that: it helps people socialize. Companies with a presence on social networking sites should keep finding ways to engage their clients. We at TweeParties believe that a Twitter party is a great way to open up conversations with consumers and keep them interested in your brand. Have Twitter parties, talk to your followers, answer their questions, come up with other contests & events to hold on Twitter and Facebook (or Foursquare). When it comes to social media, it’s all about engagement. Otherwise, you might as well drop $25K on a glossy magazine ad and be one with it.

Tags: Facebook, Having Twitter parties, interactive advertising, social media marketing, Twitter