Twitter’s Slowest Revenue Growth for 3 Years Reported - Piranha Digital

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Twitter’s Slowest Revenue Growth for 3 Years Reported

By piranha

27th July 2016

It seems that Twitter is still struggling to keep up with their competitors as this week the social media platform has reported its slowest quarterly revenue growth in 3 years.

In the second quarter of 2016, revenue increased by 20% to $602m which is a disappointing result compared to the same quarter last year, where it saw a 61% leap.

However, the site, which draws in 310 million users each month, managed to reduce their losses during the 3-month period to $107m from the $136m reported in 2015.

In a metric released to advertisers, the company also stated that the number of people accessing the platform each month had increased by 3%, drawing in 3 million more users in total.

One thing that has played a part in the struggle to increase revenue is the high cost of advertising on the platform. Anyone looking to promote their business on the platform will need to sacrifice a substantial amount of money to do this, compared to Facebook where you can pay as little as £1 a day.

Twitter’s chief financial officer, Anthony Noto, said; “We continue to believe that, with disciplined execution against our priorities, we can drive sustained engagement and audience growth over time.”

“We need to tap into other parts of the advertising budget, specifically the online video advertising budgets”, which will be a “gradual process” rather than a quick fix solution.

With so many other platforms available, such as Facebook, Instagram and Snapchat, Twitter will undoubtedly have a fight on their hands if they want to see better results in the future. Not only will they need to improve the advertising aspect for businesses but will also need to introduce exciting and innovative features to attract even more new users.

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