Twitter announced on Tuesday that it has introduced a new ad feature and updated its advertisement algorithm to analyse ad performance on its platform to lay down the foundation for features it plans to launch in the future.
The social media platform is seeking to improve its ability to show the user relevant ads, which in turn will increase the likelihood of the users interacting with the post and clicking on the advertisement being shown to them. This will help Twiter to promote itself to advertisers as a service for selling products in the future.
By tweaking and perfecting the ad features on its platform, the microblogging site is pushing towards growing its advertisement performance business, which only constituted 15 per cent of its earnings last year, by giving more incentives to advertisers to quickly ramp up its sales.
Twitter, in an endeavour to double its annual revenue by 2023, has been aiming to increase traction on its platform to generate revenue from its user base and through potential brand advertisements.
Kamara Benjamin, group product manager at Twitter, in an interview called diving into the performance ad business a very large opportunity, one which has not been tapped into by Twitter so far. “Ultimately, this is going to lead to people installing apps, visiting websites and finding products that meet their needs,” he added.
Twitter is also working on renewed optimization models for App install targeting and new post-install products, now allowing users to directly download an app advertised to them on the platform without having to exit it. Moreover, it is focusing on In-App Purchase Optimization, which would allow advertisers to run campaigns concentrated on finding users more likely to make in-app purchases, it stated in a blog post released on Tuesday.
Updates in carousel advertisements are also being tested on the platform, enabling advertisers to add custom headlines and landing pages into each frame of the advertisement post. Twitter revealed that the introduction of the new carousel ad features led to a 25 per cent increase in clicks on ad campaigns that target growth in website visits.