Twitter’s ad business has shrunk, but ad buyers say it’s stabilized

For four consecutive quarters, Twitter’s advertising revenue has declined year over year. But Twitter’s ad business isn’t in a free fall so much as it has settled down, according to ad buyers.

Twitter’s ad business suffers under a Goldilocks paradox. Twitter has a big audience, but not a big enough one. It’s a good place for brand advertisers to get people’s attention, but not all the time. It has strengths in direct-response advertising, but they’re obscured by its direct-response struggles. The real-time nature of its product separates it from other social platforms like Facebook, but it also leads advertisers to lump it in with news publishers instead of social platforms (a categorization even Twitter has acknowledged). As a result, Twitter remains able to compete for a share of advertisers’ budgets, but it’s not able to win as much share as it might have previously.

[Read the full article on MarTech Today.]

About The Author

Tim Peterson
Tim Peterson, Third Door Media's Social Media Reporter, has been covering the digital marketing industry since 2011. He has reported for Advertising Age, Adweek and Direct Marketing News. A born-and-raised Angeleno who graduated from New York University, he currently lives in Los Angeles. He has broken stories on Snapchat's ad plans, Hulu founding CEO Jason Kilar's attempt to take on YouTube and the assemblage of Amazon's ad-tech stack; analyzed YouTube's programming strategy, Facebook's ad-tech ambitions and ad blocking's rise; and documented digital video's biggest annual event VidCon, BuzzFeed's branded video production process and Snapchat Discover's ad load six months after launch. He has also developed tools to monitor brands' early adoption of live-streaming apps, compare Yahoo's and Google's search designs and examine the NFL's YouTube and Facebook video strategies.