{"id":6717,"date":"2017-02-09T09:12:49","date_gmt":"2017-02-09T08:12:49","guid":{"rendered":"http:\/\/eastwind.es\/marketing\/en\/?p=6717"},"modified":"2017-02-09T18:48:56","modified_gmt":"2017-02-09T17:48:56","slug":"twitter-manages-to-turn-audience-up-but-ad-revenues-still-lagging-behind-even-in-2017","status":"publish","type":"post","link":"https:\/\/eastwind.es\/marketing\/en\/twitter-manages-to-turn-audience-up-but-ad-revenues-still-lagging-behind-even-in-2017\/","title":{"rendered":"Twitter manages to turn audience up but ad revenues still lagging behind, even in 2017"},"content":{"rendered":"

2016 was a transformative year as we reset and focused on why people use Twitter: it’s the fastest way to see what’s happening and what everyone’s talking about,\u00bb said\u00a0Jack Dorsey, Twitter’s CEO. \u00abWe overcame the toughest challenge for any consumer service at scale by reversing declining audience trends and re-accelerating usage. As a result, in the fourth quarter, daily active usage accelerated for the third consecutive quarter, and we see this strong growth continuing. While revenue growth continues to lag audience growth, we are applying the same focused approach that drove audience growth to our revenue product portfolio, focusing on our strengths and the real-time nature of our service. This will take time, but we’re moving fast to show results.\u00bb<\/p>\n

\"Jack<\/a>
Jack Dorsey, CEO Twitter. Twitter photo by courtesy of Asa Mathat<\/span><\/figcaption><\/figure>\n

In a letter to shareholders Twitter reffers to some detaild meassures to be taken to drive ad revenues growth such as simplifying its portfolio and buying process for advertisers. Focusing on investment in revenue product features that diferentiate Twitter and capitalizing on Twitter’s unique value proposition for advertisers, including video and more organic ad formats, are also mentioned. The portfolio restructuring might also drive to de enphasize certain feaures in ad products.<\/p>\n

Twitter expects to grow its data licensing revenue with a more brand-centric approach to channels, markets, products, and pricing. The multinational is investing in deeper partnerships with a few select solution providers (including Sprinklr, Sprout Social, and Conversocial) to help brands realize greater value from the data and platform.<\/p>\n

Just as an example the new Sprinklr channel partnership is focused on driving marketing innovation for large enterprises. This partnership is a multi-year deal, totaling more than $90 million, with collaboration in product development, sales, and marketing.<\/p>\n

Despite all the changes the multinational is planning or has already carried out, Twitter still thinks that revenue growth will continue to lag audience increases in 2017 and could even be further impacted by escalating competition for digital ad spending.<\/p>\n

YoY results: total revenue up 14%, DAUS up 11% and ad revenues up 12.73%<\/strong><\/span><\/p>\n

Total revenue for 2016 reached $2.5Bn, up 14% year-over-year. Adjusted EBITDA for the full year improved by nearly $200 million, reaching $751 million with a 30% margin and exceeding Twitter’s guidance range of $700 to $715 million and the company’s initial guidance range of 25-27%. Twitter also generated significantly more adjusted free cash flow, with more than $440 million in 2016 compared to less than $5 million in 2015. The blue bird multinational ended the year with $3.8Bn in cash, cash equivalents, and marketable securities.<\/p>\n

Twitter sourced $2.248 Bn of total revenues from advertising. The figure means a 12.73% yoy (year on year) increase compared with the $1.994Bn in ad revenues declared by the company in FY 2015.<\/p>\n

Data Licensing and other sources of revenue contributed with $282 million (up 28,89% yoy) to the total $2.5Bn revenues posted for 2016.<\/p>\n

Ad revenues shrinked a 0,46% in 4thQ, while traffic aquisition costs went down to the 52% from 56% in 3rdQ<\/strong><\/span><\/p>\n

Total advertising revenue was $638 million, down slightly year-over-year. Twitter-owned-and-operated advertising revenue was $553 million, down 1% year-over-year. Strength in video was ofset by year-over-year declines in revenue generated from traditional Promoted Tweet and direct response ad formats.<\/p>\n

Non-owned-and-operated advertising revenue reached $85 million, or 13% of advertising revenue, roughly flat year-over-year.
\nSignificant gains in revenue from the Twitter Audience Platform were offset by signifi cant yearover-year declines in revenue from TellApart.<\/p>\n

Twitter expects contributions from non-owned-and-operated advertising revenue to face significant headwinds in 2017 from factors impacting TellApart.<\/p>\n

Traffic aquisition costs in 4thQ 2016 were at $45 million (a 52% of non-owned and operated advertising revenues). In 4thQ 2015, this cost chapter meant a 61% of non-owned and operated advertising revenues and the proportion was at 56% in 3rdQ 2016.<\/p>\n

Twitter’s advertising business continues to skew toward large branded advertisers in the US and Canada with above-average growth in a few select international markets.<\/p>\n

\"Periscope,<\/a>
Periscope, Search, Save beyond 24h and drone icons. \u00a9 Twitter<\/span><\/figcaption><\/figure>\n

By product, video continued to be the company’s single largest revenue-generating ad format. Strong growth in video, including in live-streaming, Twitter Amplify, and First View ad formats, was offset by year-over-year declines in traditional Promoted Tweet and direct response ad formats.<\/p>\n

On a sequential basis, typical seasonal growth from Q3 to Q4 was muted by a quarter-over-quarter decline in revenue generated from mobile app promotions and single-digit sequential growth in revenue generated from direct response ad formats. Data licensing and other revenue totaled $79 million in the fourth quarter, up 14% year-over-year. Growth was driven by continued strength in Twitter’s mobile ad exchange services.<\/p>\n

During the fourth quarter, the company reorganized its partnership, sales, and marketing organizations to better align and execute against the multinational’s
\nkey priorities.
\nTo better serve their ad partners, Twitter reduced the number of sales channels from three to two.<\/p>\n

Audience<\/strong><\/span><\/p>\n

For the third consecutive quarter, product changes drove a direct improvement in several key audience metrics with an acceleration of year-over-year growth in DAUs -daily active users- for three quarters in a row. DAUs grew 11% year-over-year, compared to 7% in Q3\u201916, 5% in Q2\u201916, and 3% in Q1\u201916. Other key engagement metrics (including time spent and total Tweet impressions) remained strong with double-digit year-over-year growth. Total MAUs for Q4 grew to 319 million from 317 million in the prior quarter.<\/p>\n

Product improvements and organic growth again drove most of the change, with additional lift provided by marketing initiatives. On a year-over-year basis, MAUs grew 4% in Q4, an improvement compared to 3% year-over-year growth rates seen in each of the three previous quarters.<\/p>\n

Engagemnet Metrics<\/strong><\/span><\/p>\n

Total ad engagements grew 151% year-over-year, driven primarily by a continuing mix shift toward video ad impressions, as well as higher clickthrough rates (CTR) across nearly all ad formats on a like-for-like basis.<\/p>\n

Average cost per engagement (CPE) fell 60% year-over-year, again due to a higher mix of video engagements, as well as significantly lower video CPE compared to the prior year.<\/p>\n

On a sequential basis, total yield per impression improved compared to Q3 for the second consecutive quarter, driven both by a mix shift toward higher yield ad formats as well as higher CTR across several ad formats.<\/p>\n

Image over the headline.-<\/strong> \u00a9 Twitter<\/span><\/p>\n

Related Eastwind Marketing link<\/span>s:<\/strong><\/span><\/p>\n

Google, to purchase Twitter\u2019s Fabric<\/span>
\n<\/a>
\nTwitter, to launch search and drone broadcast for Periscope<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

2016 was a transformative year as we reset and focused on why people use Twitter: it’s the fastest way to see what’s happening and what everyone’s talking about,\u00bb said\u00a0Jack Dorsey, Twitter’s CEO. \u00abWe overcame the toughest challenge for any consumer service at scale by reversing declining audience trends and re-accelerating usage. As a result, in …<\/p>\n

Twitter manages to turn audience up but ad revenues still lagging behind, even in 2017<\/span> Leer m\u00e1s »<\/a><\/p>\n","protected":false},"author":8,"featured_media":3305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[3],"tags":[5206,5205,410,5208,5207],"yst_prominent_words":[],"_links":{"self":[{"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/posts\/6717"}],"collection":[{"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/comments?post=6717"}],"version-history":[{"count":0,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/posts\/6717\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/media\/3305"}],"wp:attachment":[{"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/media?parent=6717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/categories?post=6717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/tags?post=6717"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/eastwind.es\/marketing\/wp-json\/wp\/v2\/yst_prominent_words?post=6717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}