October 12 (Businesshala) – Twitter Inc (TWTR.N) on Tuesday rolled out new advertising features and revamped algorithms that decide which ads users see, in a bid to launch future ecommerce features As part of an effort to lay the groundwork, the social networking company told Businesshala.
The new features come as Twitter is pushing to grow its display advertising business, a strategy that aims to generate sales quickly, and accounted for just 15% of Twitter’s business last year. The effort could help Twitter reach its goal of doubling annual revenue by 2023.
The San Francisco-based company is positioning itself to eventually allow products to be sold through the service by improving its ability to show users contextual ads and increasing the likelihood they’ll click on the ad.
“Display advertising is a huge opportunity … it’s relatively untapped for us,” Kamra Benjamin, group product manager at Twitter, said in an interview. “Ultimately, this will drive people to install apps, visit websites, and find products that meet their needs.”
Ads promoting downloads for mobile games and other apps, which are a major type of ad on social media sites, will now allow users to initiate downloads without leaving the Twitter app, the company said in a blog post on Tuesday. . Earlier users had to leave Twitter to download other apps.
Twitter said it is working on new tools to help companies find customers who are more likely to make in-app purchases.
Slide-show ads containing multiple products can now send users to different websites when they click on the ad, whereas earlier brands could choose only one destination. The company said it increased the number of clicks on ad campaigns that target website visits by 25%.
Benjamin said Twitter has also improved the advertising algorithm, showing ads to a larger pool of people at the start of the campaign so it can better measure user interest.
Those algorithm improvements led to a 36% increase in ad campaigns that achieved at least five downloads during the time period the ad ran on Twitter, the company said.