Since July 2015, Twitter added 9
million monthly users while
Facebook’s user-base grew by 164
Twitter has reported a 20% rise in
revenue at $602m (£458.67m;
€547.35m) for the second quarter,
which is its smallest quarterly gain
since 2013. The company’s revenue
growth has been on the decline for
eight straight quarters.
However, the social media giant also
reported a decline in quarterly losses.
For the second quarter, its losses
stood at $107m, which is an
improvement over the $136m loss it
incurred during the same period last
The dismal results come in even after
the California-headquartered company
witnessed a rise in new users on its
microblogging site. For the most recent
three-month period, Twitter claimed to
have added three million new users, up
1% from the previous quarter. This
takes the total number of users who
log on to the site – at least once a
month – to 313 million.
These numbers are extremely low when
compared to Mark Zuckerberg’s
Facebook. According to The Wall Street
Journal , since Jack Dorsey’s return as
CEO in July 2015, Twitter added just
nine million monthly users, while
Facebook’s saw 164 million signing up
on the site during the same period.
Why advertise with us
In a letter to shareholders, Twitter said
that demand from advertisers declined
more than the firm had expected. It
also acknowledged that advertisers
preferred other social media
companies as compared to Twitter and
blamed its premium pricing for hurting
its appeal.
While the company did not promise to
reduce advertising prices, it said that it
would move into direct-response
advertising, mobile video and other
new segments. Anthony Noto, CFO at
Twitter said, “We need to tap into other
parts of the advertising budget,
specifically the online video advertising
budgets.” According to another report ,
Twitter said it is planning to introduce
new tools for advertisers, going
forward. These are expected to include,
“accurate audience verification,
reserved buying, and reach and
frequency planning and purchasing”.
With regards to the next quarter,
Twitter’s outlook was bleak as far as
advertising revenue is concerned. It
said this business may decline or even
come to a halt in the third quarter.