Twitter has recently hired Nathan Hubbard, former Ticketmaster president, to lead the charge on its commerce operations. This move is a part of Twitter’s efforts to pass the $1 billion revenue threshold by 2014. With its current revenues coming almost exclusively from advertising, Twitter figured it can unlock its social commerce potential, a market that is still untapped by most social networks.
While Twitter’s intention is not exactly disruptive or unexpected, it is interesting to have a look at some of the subtle nuances. Hubbard recently declared in an interview that…
“We’re going to go to people who have stuff to sell and help them use Twitter to sell it more effectively. One of the hallmarks of Twitter’s entire approach has been partnering. We’re going to take the same approach with owners of physical and digital goods.”
– Nathan Hubbard
Taking into account Hubbard’s words and the recent developments in social media and eCommerce some things are to be expected:
- It’s really important to note that Twitter’s efforts seem to be going into C2C territory, as well as the traditional approach into B2C. Twitter’s users may be empowered to exchange and trade stuff on the social network, an activity that is not that uncommon on its main competitor platform, Facebook. That may mean that Twitter’s commerce innovation will be to help transform its social network by adding a C2C commerce layer, not unlike Ebay’s platform. It does have the users, it might just as well let them trade.
- There seems to be a great focus on digital goods, as they may work better with the digital market Twitter is building. Some of Facebook’s best commerce results came from digital content, such as apps, especially Mobile App Install Ads. The Install Ads have helped Facebook increase its share of mobile – related revenue to 41% of total. But digital products is a far larger market than apps. It goes beyond to include concert tickets, airline reservations, hotel reservations, digital books and many others.
- You might have noticed that Twitter left the “e” out of its “eCommerce” operations as the company has a Commerce target. Both online and offline. A multichannel approach, if you will. As the lines between traditional and online retail have become almost invisible in the past years, Twitter seems to be looking into an integrated commerce approach, tracking and targeting the potential consumer via brick and mortar stores, as well as online. To help deliver metrics on such efforts, the company recently paid $90 million for Bluefin, a social and TV advertising metrics company.
There is a high chance that Twitter’s commerce efforts might not be all that spectacular, as even the mighty Facebook seems to be running around in circles when it comes to commerce, but I am personally looking forward to see where their efforts take them.