fbpx

SOCIAL MEDIA

Twitter’s poor performance leaves shareholders not very chirpy

By our News Team | 2022

Tougher times in the advertising sector and the chaos of the failed Musk takeover have been blamed for below-par Second Quarter results.

Shareholders and executives at Twitter are not too chirpy following the recent release of the social media platform’s Quarter Two financial statements, which reveal disappointing results and a decline in revenue of US$270-million versus the same period last year.

Market analysts had expected a better performance. However, a slowdown in global advertising spending has been blamed, as well as general uncertainty around the collapsed takeover bid by Elon Musk. 

Social Media

Image by Photo Mix from Pixabay

“As advertising represents around 90% of Twitter’s overall revenue base, that destabilisation has had a significant impact on the company’s bottom line,” the marketing industry news website The Drum reported.

Working to increase audience engagement

Twitter has been working hard to grow the engagement of its existing audience – as opposed to focusing on increasing audience numbers – which would increase its appeal to advertisers. The engagement-growth strategy does appear to be working, although as yet it has not translated into more ad revenue.

“Twitter is now in the unenviable position of convincing advertisers that its ad business is solid, regardless of how its court battle with Musk ends, and its Q2 earnings show that the platform has its work cut it out for it to do that,” Jasmine Enberg, Principal Analyst at research firm Insider Intelligence, is quoted as saying by Reuters news agency.

In another news report, Enberg noted: “One bright spot was engagement. Twitter is a platform that thrives on news and controversy, and there was plenty of that to go around in Q2 … But user growth may not be enough to convince advertisers to spend on Twitter, especially at a time when many advertisers’ budgets are tightened.”

Twitter’s poor Second Quarter financial performance echoes that of Snapchat, the instant-messaging app, which reported last week that advertisers had cut spending on the platform to combat wider economic pressures.

Marketing Spend

Marketing Spend

The knee-jerk reaction in a recessionary environment is to reduce spending on marketing. But study finds it’s detrimental in the longer term.

Read More »
Market Insights

Market Insights

Consultancy says it aims to get beyond the tactical and generalist research to drive more impact and business transformation.

Read More »
Personal Branding

Personal Branding

He made Tesla a household name. But a tangled private life, provocative comments and the Twitter no-deal may be taking a toll on the brand.

Read More »
Brand Values

Brand Values

MTN surges up the Kantar BrandZ ranking to take the No.1 spot for the first time as South Africa’s most valuable brand.

Read More »
Shopping Trends

Shopping Trends

Easy online shopping is leading to overconsumption. Encouraging a stronger movement to buying pre-loved goods is therefore vital.

Read More »
Consumer Outlook

Consumer Outlook

New polling by Ipsos across 28 countries finds that in many markets the public expect recent cost of living pressures to continue.

Read More »
Marketing Ethics

Marketing Ethics

Research by Australian academics shows how companies are using the growing TikTok platform to push unhealthy eating amongst kids.

Read More »