BWild |
February 13, 2013
Twitter takes aims at mobile commerce with the help of American Express
Twitter is one of the world’s most used social networks. The network boasts of a highly active user base, which has afforded the company significant success in the world of business. Twitter has reportedly been looking for new ways to generate revenue. Such reports seem to have been true as the social network has entered into a partnership with American Express. The partnership will be focused on introducing e-commerce and mobile commerce elements into Twitter.
Mobile user base adds momentum to Twitter’s initiative in e-commerce
Twitter has been showing a strong interest in e-commerce in recent months. The massive number of users that access Twitter through their mobile devices has also piqued the company’s interest in mobile commerce. The company sees major potential in this field and has turned to American Express to help it tap into the burgeoning mobile commerce market that has been successful for other companies.
Users will be able to purchase products by posting to Twitter
Per the partnership, American Express customers will be able to associate their credit card numbers with their Twitter accounts. This will allow consumers to make purchases by simply posting to Twitter. This initiative will be introduced over the next few days, with Twitter users able to purchase products from American Express itself, as well as Amazon and products from Donna Karan. Because Twitter’s primary demographic is mobile consumers, the move is expected to help establish the social network’s presence in the mobile commerce space.
Success of new initiative has yet to be seen
This is not the first time American Express has introduced a mobile commerce element to a social network. Last year, the financial services company partnered with Foursquare for a similar initiative. Twitter expects to see significant benefits from its adoption of mobile commerce and suggests that there will be major marketing opportunities for businesses using the social network due to the new partnership. Whether consumers will respond well to the mobile commerce services that Twitter is adopted has yet to be seen.
The latest mobile marketing efforts from the social networking giant could include location tracking.
Sources with knowledge in the areas have revealed that Facebook currently has a team developing a smartphone geolocation app that will track user locations in order to help to boost the effectiveness and relevance of the social media experience on those devices.
The app is currently believed to be slated for a mid-March release for more than a billion users.
According to the sources – who have opted to remain unnamed as the company has yet to release the details of this geolocation project to the public – the main purpose of the app is to allow its users to be able to find friends who are nearby. Regardless of whether or not the app is actually open on the handset, it will still collect data for this and other purposes that are relevant to the application.
This geolocation app is only one of many features that Facebook is continually adding to its mobile experience.
The company may also be using the geolocation data that it receives through the app to be able to enhance the profitability of its mobile marketing efforts – which it has announced will be a primary goal for 2013. This would allow it to gain access to a tremendous amount of user location information, as there are currently over one billion people who use their mobile devices to access their Facebook accounts.
The geolocation information that will be gathered will present a considerable mobile marketing opportunity for the social network, as it will be able to sell ads based on the daily habits and the whereabouts of the app users. This could prove to be highly appealing to many companies who are seeking just this sort of opportunity to take advantage of the high tech benefits that m-commerce has to offer.
At the same time, many consumers and privacy advocates have already been raising concerns about the way that the company manages the personal data that it collects and this may only incense them further. They are not alone in their doubts of the social network’s management and protection of sensitive data, as it has also received the scrutiny of European and American regulators.
Facebook is not alone in this type of geolocation initiative, as both Google Inc. and Apple Inc. have already both created and implemented their own versions of location tracking.
