For companies who wish to more formally advertise on twitter, cost per follower (CPF) is an easy measurement that ensures you only pay [in money] as much as you receive [in followers]. Twitter allows companies to advertise on a few different levels: for a price, twitter will promote specific accounts, tweets, or trends. Cost per follower pricing is used to rank promoted accounts.
What is a promoted account?
Promoted accounts are the first results to come up in searches relating to your company; promoted accounts also appear in the "Who to Follow" section for relevant twitter users. Twitter can target potential followers based on a variety of criteria, such as geography, interest-for example, the users who follow companies in the same industry as yours-gender, or device. Twitter then promotes your account in the "Who to follow" section of those targeted users.
Image Source: agbeat.com
So what will a promoted account cost me?
Here's where the cost per follower comes into account. Companies "bid" to be promoted based on how much they are willing to pay for each person who follows the account due to twitter's recommendations. Twitter will recommend bidding prices based on the average amount that competitors are bidding. Currently, the average ranges from $2.50 per follower up to $4.00 per follower, although bidding higher will get your company higher priority in twitter's recommendations.
Twitter also allows you to set a budget-once you have acquired a certain number of followers, or respectively paid a certain amount for advertising, twitter will stop promoting your account so that you do not spend more than you plan for. Depending on the success of the promotion campaign, you can adjust your budget as you find need.
For more information, see what twitter has to say about its advertising process here.