Twitter acquired CardSpring to help its e-commerce efforts
In July this year, Twitter (TWTR) acquired CardSpring for an undisclosed sum. CardSpring is a payments infrastructure company that helps retailers offer online shoppers online-to-offline promotions. For example, Twitter can offer online shoppers coupons that can be integrated with their credit cards so that they get discounts the next time they visit Wal-Mart’s (WMT) physical stores.
During the conference call to announce earnings, Twitter refused to extrapolate too much on how its e-commerce efforts would grow with the help of CardSpring. However, it’s clear that Twitter is quite serious about its e-commerce initiative as social networks have started to influence e-commerce sales.
Twitter recently launched an in-tweet “buy” button for users to conduct e-commerce transactions instantly on Twitter’s platform itself. The company has also developed the product “Cards,” which lets e-commerce companies insert ads inside tweets.
Twitter’s working to increase the conversion rates of its e-commerce ads
During Twitter’s Citi 2014 Global Technology Conference held a few weeks back, management mentioned that they’re working to bring the interface between Twitter’s users and e-commerce platforms closer in order to increase the conversion rates of e-commerce ads. So Twitter’s conversion rate for its e-commerce ads is way behind that of other social networks such as Facebook (FB) and Google+ (GOOG)(GOOGL).
According to a report from AddShoppers and as the chart above shows, Twitter’s conversion rate of 0.69% for e-commerce ads was way below the rates for email, Google+, Facebook Share, and Facebook Like. Email, by far, remains the preferred choice for marketers to target users for e-commerce transactions.