Promoted Tweets Drive E-Commerce Purchases, Study Says

twitter, holidays, christmas, e-commerce, winter, santa hatPromoted tweets cause a one percent bump in traffic to major retailers and a 6 percent improvement in conversion rates, according to a new study that Compete and Twitter conducted together.

Among users in a control group of Internet browsers, 90 percent visited the sample sites, which included Nike, Walmart and Amazon. Among Twitter users who did not see a promoted tweet from the retailers, 94 percent visited the sites. The promoted tweets drove an additional percentage point of users to the advertised sites.

The conversion rate, or percent of visitors that purchased something, for the group that had seen a promoted tweet was 6 percent higher than for the Twitter users who hadn’t seen an advertisement. And that control group had a 6 percent edge over the Internet browsers who didn’t use Twitter.

“Twitter users arrive on a retail website with a higher intent to buy,” the study concluded.

In more specialized markets, promoted tweets made a bigger difference in traffic. But the biggest difference in conversion rates was at mass merchants like Amazon.

Promoted tweets that were displayed more often drove conversion rates up, from 36 percent after one tweet to 51 percent after 12 or more.

The study’s sample size was 2,600 users, all of whom were studied exclusively on their desktop devices and on Twitter.com.

Twitter also announced today a promotion offering $1 million in advertising credits to new advertisers.

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