Twitter Inc reported that it launched new advertising features on Tuesday and revamped the algorithm that decides which ads users see, as part of an effort to lay the groundwork for future advertising features. electronic commerce.
The new features come as Twitter is pushing to grow its performance advertising business, a strategy that aims to drive sales quickly and that made up 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 brands to sell products through the service by first improving their ability to show relevant ads to users and increasing the likelihood that they will click on the ad.
“Performance announcements are a great opportunity that is relatively untapped for us,” Kamara Benjamin, the group’s product manager on Twitter, noted in an interview.
Ads promoting downloads for mobile games and other apps, an important type of social media ads, will now allow users to initiate the download without leaving the app, the company said in a blog post Tuesday. Previously, users had to leave Twitter to download other applications.
Twitter added that it is working on new tools to allow businesses to run ads to find customers who are more likely to make in-app purchases.
Slideshow ads featuring multiple products can now send users to different websites when they click on the ad, whereas previously brands could only choose one destination.
This increased the number of clicks by 25% for ad campaigns that set the goal of driving website visits, the company said.
Twitter also improved the advertising algorithm, showing the ads to a larger group of people at the beginning of the campaign so that it can better gauge user interest, Benjamin noted.
Those algorithm improvements led to a 36% increase in ad campaigns that achieved at least five downloads during the time the ad ran on Twitter, the company said.