Twitter extends reach of targeted ads

Posted on December 16, 2015

 

Twitter has announced changes that will allow advertisers to reach users who aren’t logged in to its service.

The microblogging platform announced the update on December 10, and will allow the company access to new streams of revenue. Despite the platform’s popularity, it has struggled in its bid to make a profit.

Deepak Rao, Twitter’s product manager, said that the latest feature will be:

“[A] test for marketers to reach the over 500 million people who visit Twitter each month to keep in touch with what’s happening without logging on.”

He added that it would include those who clicked on links to tweets that were shown in a Google search.

Twitter has more than 320 million users it classes as active, but claims that the total audience it commands is much larger due to people not logging in to view tweets.

Lou Kerner, from venture company FlightVC, which analyses social media, called the development “a smart move”, but was unsure if it would generate new revenue for Twitter.

Citing user engagement as an area that needed close scrutiny, he added:

“They need to figure out how to get users that come and stay longer, which is a very difficult problem. It’s going to take a fundamental change of Twitter.”

Much of Twitter’s earnings come from promoted tweets – marketing material that appears on users’ newsfeeds – and the company recently saw a bump in its stock price, following the reappointment of founder Jack Dorsey as chief executive.

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