Twitter adds just 4 million new users in Q3
29.10.2015 246 views
Despite growing ad sales, Twitter Inc. still has a growth problem. The social network added only 4 million new users in the third quarter, which is a 1.3% increase from the previous quarter.
In the wake of its slow user growth, Twitter this month laid off 8% of its workforce. “While this decision was difficult, we strongly believe we can move faster with this new org structure and smaller, nimbler teams,” CEO Jack Dorsey, who shed the interim title earlier this month, said during a conference call with analysts.
Twitter’s slow user growth continues to overshadow the social network’s advertising revenue gains. The social network’s ad revenue grew 57.6% in the third quarter compared with the same period a year earlier.
Twitter grew its ad revenue by rolling out a number of new products and formats to lure retailers and other marketers to its platform, said Adam Bain, the social network’s chief operating officer. For instance, during the quarter it introduced a new policy in which advertisers can choose to only pay for videos that are 100% in view for at least three seconds. The change helped reduce marketers’ video ad costs 84%, he said.
Twitter also is focused on making its platform easier to use, which it believes will help attract new users. Among Twitter’s biggest initiatives is Moments, an attempt launched earlier this month to curate the avalanche of information flowing across its platform about major events, including sporting events, awards shows, breaking news or cultural memes.
Source: Internet Retailer