News broke this week that Twitter is toying with a 'buy' button feature that effectively removes the "middle-man," for lack of a better term, from the social media shopping experience. Currently, Twitter's buy button is an opt-in function, and is only available to users accessing the platform via Android and OS devices in the United States.
It's worth noting that both Facebook and Twitter are no stranger to facilitating purchases through their insanely popular platforms. However, both social media firms have recognized the need to streamline the process. According to eMarketer, eCommerce spending will eclipse $1.5 trillion by the end of 2014. Both social media powerhouses believe that the current system in place for making purchases through their sites -- users click a button, they're redirected to the company website, they make the purchase -- is too long. Twitter's buy button works more like the "buy it now" feature on Ebay, effectively removing that lengthy process by enabling one click purchases. So far, Home Depot, Burberry, and other notable names have thrown their support behind the little bluebird's newest feature.
Twitter Finally Recovering from a Year of Doubt
Acceptance of Twitter's new functionality is yet another sign that the once troubled platform may finally have hit its stride. 2013 through early 2014 saw industry insiders, investors, and consumers feeling unsure about where the platform was going, as the service stuck to a business model based on playing catch-up with Mark Zuckerberg and Facebook.
In July 2014, The Wall Street Journal reported that Twitter stocks jumped by 29%. A September 2014 article from Barron's shows Twitter stocks remaining strong and reveals surprising fact that will certainly lend credibility to the service as an effective social media marketing platform: Twitter ad click-through rates are eight times higher than those on Facebook. While the platform remains markedly behind Facebook in terms of size and revenue, analysts estimate that if this trend continues, Twitter will approach the $100 billion market cap by 2018. In short, Twitter is returning to form as a viable, powerful social media marketing service.
What do you think these developments mean for the underdog social media service? Share your thoughts in the comments below.
By: Charles Hayward