Twitter Increases Ad Frequency for Certain Users

author image Written by: Nicole           Categories - In The News

Twitter Users to Start Seeing More Ads in Their Feeds

In light of reported disappointing earnings for the third quarter of 2019, Twitter recently announced that it would be increasing the frequency at which it displays ads for certain groups of users of its platform. Previously, Twitter would display fewer ads for users that had larger follower counts, and more for those with smaller amounts of followers. In fact, some users may have never even seen any ads in their feeds, depending on how many followers they had. But going forward, Twitter is showing ads to everyone using the platform, and increasing their frequency, resulting in some users seeing more ads in their feeds than they usually would. In an official statement provided by a Twitter spokesperson, the company stated that this was due to a change in ad strategy and that: “Historically, users with high follower counts have seen fewer ads. Recently, we’ve shifted our approach to showing ads to everyone who uses Twitter and as a result, some will notice an increase in the number of ads they’re seeing.” https://twitter.com/stevekovach/status/1187417502332137473

Reason for The Change

The news of this change comes on the heels of news that Twitter’s stock had plunged by 20% due to various issues that plagued the company during its third quarter. Prior to the release of its quarterly earnings report, Twitter shares had been up by 35% in 2019.   Chart shows drop in Twitter's ad revenue Source: CNBC And while advertising revenue for the quarter came in at $702 million – 8% higher than the year prior – this is significantly lower than the $756 million that was predicted by analysts surveyed by FactSet, according to CNBC. Total ad engagements also increased by 23% year over year, while cost per engagement decreased by 12%.

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Nicole

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