On Wednesday, Twitter unveiled three products related to direct response advertising. With these products, the micro-blogging site hopes to push up its revenue, which was guided downward a few months back.
Twitter will be hoping for more revenue
Almost a year ago, Twitter launched a mobile app promotion that allowed advertisers to pay for their ad to be shown on Twitter-partnered apps, such as gaming and ride-sharing apps. Now the company has improved the app with three more products.
Twitter is still testing the products, but expects them to be accessible to all advertisers within the third-quarter. As of now, a selected group of advertisers will be testing the new products, aimed at improving user engagement with direct response ads with a motive to inspire a user to click on a link or download an app.
Earlier this year, the micro-blogging firm slashed its full-year revenue forecast by approximately $200 million as the direct response ads didn’t produce expected revenue. Twitter is hoping that advertisers will be influenced to invest more in the platform due to the new direct response features. Moreover, with these new features, Twitter will be hoping to recover from its recent disappointing financial performance and user growth.
More power to advertisers
Until now advertisers could only showcase their product through pictures. But now, some advertisers will be able to demo the app inside the video ad, which is more effective and appealing, according to numerous studies. Richard Alfonsi, Twitter’s vice president of global online sales, said that this way video users are able to better understand how an app or product works before downloading. In addition, more options will be available for advertisers, enabling them to choose what type of user actions they should pay for.
Advertisers can also bid for advertising space by deciding on a lump sum they will pay the advertiser after someone installs their app after viewing an ad. In other words, advertisers will now have more power, as they do not have to pay every time a user clicks on a link. According to the micro-blogging site, ads will now be available to a wider audience. Instead of just Twitter’s 300 million monthly active users, the ads will now be viewable across the company’s entire network of partner apps.