It Was Inevitable: Post-IPO Twitter to Incorporate New Ad Technology
Well, it was inevitable, and now it's almost here: Twitter, now a public company with investors to please, is reportedly working on lots of new ads to push in front of users' faces.
By lots of new ads, we're talking 15 new types of ad products and techniques to target Twitter users with products and promotions, according to a Wall Street Journal report. The report, based on "people familiar with the company's plans" says Twitter will begin debuting some of the new ads over the next few weeks, with all of them taking effect over the next six months.
The first ads you'll see are going to include a product that entices Twitter users to download apps through the 140-character social network. Similar to what Facebook has offered advertisers since 2012, the "mobile-app install ad unit" is currently in beta testing.
It's based on expandable promotional tweets, which Twitter calls "cards." The way it works is ads will appear in front of users urging them to download apps at the touch of a button, included within that tweet's expanded card. When users click on it, they'll be taken directly to the app's page on their app store, where they can immediately download the app. Once the download begins, the phone will automatically switch back to Twitter.
According to the report, the new advertising product is a response to mobile and gaming companies who are not satisfied with Twitter's current, conventional promotional tools, because the ecommerce businesses make their marketing decisions based on app downloads, new subscriptions, and product purchases, rather than counting the number of eyes their ads reach.
Twitter doubled its ad revenue in late 2013 over the previous year, but has yet to turn a profit as a public company, and has lost about a third of its Wall Street value this year.
Other advertising products that Twitter has been experimenting with include a "click-to-call" feature that would automatically put Twitter users on the phone with advertising businesses and a Stripe Inc.-enabled ad product that would let users buy products directly through Twitter.
Beyond the ad and ecommerce technology that Twitter might incorporate, the company has been hard at work to improve targeting of ads, including expanding their databases and analytics, as well as focusing on culturally identifiable demographics on their social network, like Latinos.
As we previously noted before Twitter's initial public offering, while the company announced it wanted to make its IPO as quick and painless as possible, users were bound to feel the pain of more advertising at some time or another. It looks like that time is now -- or very soon.
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