Press "Enter" to skip to content

Twitter miss earnings, blames it on poor ad targeting

On Thursday, shares of Twitter dropped 20.8% right after the firm stated how its Q3 got plagued by headwinds related to advertising and issues related to products. The company made a total earning on every share around 17 cents which was expected to be about 20 cents. Though analysts expected the company to raise revenue of about $874 million but in actual it could only generate around $823.7 million.

Twitter also has to deal with lower advertising during the month of July-August, which according to some experts might be the cause of low revenue generation. Through the shareholder’s letter the company stated that during the third quarter officials of the company noticed about the issue regarding Mobile Application Promotion product, sharing of data with advertisement partners and via measurement and ability for targeting advertisements. In the letter, it was also written that due to the issue revenue growth reduced from one year to another.

The quarters’ advertising revenue compounded to about $702 million which is 8% greater in comparison to previous year but it is considerably lower than $756 million which was predicted by expert analysts. The company has witnessed increase in advertisement engagements around 23% on yearly basis, whereas cost on every engagement dropped around 12%.

Several issues were outlined by Ned Segal with regard to the advertising system at the time of conference call. While talking to the press Ned Segal stated that issues regarding advertising system of Twitter surfaced after a series of long term events that they do not occur within a day or so.

Through a particular bug, a user who was new to Twitter asked whether it would be better if the platform uses settings as per the device you are using so that it can easily personalize the time line. Platform collects data every time a user gives no for an answer. Twitter then shut off this feature altogether by realizing that it has improper data use. This limited its ability for selling and targeting ads.

Kelly Rivera
Kelly Rivera Author
Lead Editor At Global Newspaper 24

Kelly has been one of the most knowledgeable personalities in the Global Newspaper 24’s Business section team. While she has completed MBA in Finance Degree, she has always demonstrated her core knowledge in business management and affection toward the freedom of expression through words by crafting superlative news reports for all the readers of the Global Newspaper 24 platform. At present, Kelly works as the Head of the Business Department and is responsible for checking all the news reports for readability while adhering to the quality standards of Global Newspaper 24. Kelly is a super-active personality that loves to write news reports on various topics such as mergers & acquisitions, latest product launches, and major business events.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *