Marketing with Twitter – Does it Work?

Recently, a few of my clients have been using twitter to market their products and services. There’s been a bit of a learning curve for all those involved, but after awhile we seemed to start getting some decent response. Lot’s of followers are coming along, but not as much interaction as I would have hoped for though. I’d say about 0.5% of all of our followers actually engage in meaningful dialogue and “retweets”. Where we’ve gotten most of our response is by holding free giveaways. However, it seems that all the followers and retweets that we gain from these giveaways are just looking to get a free product, they don’t care what the product is, they just want to get something for free.

Any experience with twitter? And is it all just spam/junk traffic?