Twitter announced new advertisement options on Tuesday, as well as a modified algorithm that determines which advertisements users view. This approach is part of an attempt to build the basis for future e-commerce features, according to Reuters.
The new features come as Twitter tries to expand its performance advertising business; which accounts for only 15 per cent of Twitter’s revenue last year. Performance advertising is a technique that strives to generate sales quickly. Twitter may be able to achieve its target of tripling yearly income by 2023 as a result of this effort.
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Twitter’s New Advertising Approach
By first improving its capacity to display users relevant ads and raising the probability that they will click on advertisements; the San Francisco-based business is positioning itself to eventually allow companies to sell things through the service.
“Performance advertisements are a very large opportunity … that’s relatively untapped for us,” said Kamara Benjamin, group product manager at Twitter, in an interview. “Ultimately, this is going to lead to people installing apps, visiting websites and finding products that meet their needs.”
Advertisements for smartphone games and other apps, which are a popular type of advertisement on social networking sites, will now allow users to start the download without leaving the Twitter app, according to a blog post published on Tuesday by the company. Users had to quit Twitter in order to download other apps previously.
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Twitter also revealed that it is developing new tools that would allow businesses to run ads to target people who are more inclined to make in-app purchases.
When users click on a slideshow advertisement with various products, they can now be directed to different websites; when earlier brands could only choose one destination. According to the company, this raised the number of clicks on advertising campaigns; with the purpose of generating website visits by 25%.
According to Benjamin, Twitter enhanced its advertising algorithm by presenting ads to a larger group of users at the start of a campaign to better evaluate user interest.
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Because of the algorithm enhancements, there was a 36 per cent increase in advertising campaigns that received at least five downloads throughout the time they were on Twitter.
