Why Twitter plans to increase its e-commerce ad conversion rate
Why are users spending more time on mobile apps? (Part 5 of 9)
Twitter’s working to improve the conversion rates of e-commerce ads
In the previous part of this series, we discussed how mobile app-install ads benefit not only mobile app developers in promoting their apps but also social networks such as Facebook (FB) and Twitter (TWTR) in monetizing them. But Twitter is also looking to monetize its e-commerce ads better.
During Twitter’s Citi 2014 Global Technology Conference held earlier this month, Twitter’s management mentioned that they’re working to bring the interface between Twitter’s users and e-commerce platforms closer so as to increase the conversion rates of e-commerce ads. Twitter recently launched an in-tweet “buy” button for users to conduct e-commerce transactions instantly on Twitter’s platform itself.
Twitter also hired Nathan Hubbard, the former president of Ticketmaster, to head its e-commerce unit last year and to boost its e-commerce initiative. The company has also developed the product “Cards,” which let e-commerce companies such as Amazon (AMZN) and eBay (EBAY) insert ads inside tweets themselves. Market Realist recently published an article titled Why Twitter is looking to change its advertising payment model. We discussed how Twitter plans to revamp the fees that it charges its advertisers.
Twitter’s conversion rates are below rates for Google+ and Facebook
Let’s get an idea about conversion rates in 2013. Twitter’s conversion rate of 0.69% for e-commerce ads was way below the rates for email, Google+ (GOOG)(GOOGL), Facebook Share, and Facebook Like, according to a report from AddShoppers and as the chart above shows. Email remains the preferred choice for marketers to target users for e-commerce transactions.
But all the efforts we described above should help Twitter increase the conversion rates of its e-commerce ads.
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