Mobile advertising accounts for 88% of Twitter Q1 2016 ad revenue


Twitter recently released its Q1 2016 earnings statement which shows that the company gained five million monthly active users during the first three months of the year. It announced 310m MAUs, up from 305m in Q4 2015.

Twitter announces user growth



In addition, the social media site announced a total revenue of $595m – a 36% increase from the previous quarter. The majority of that revenue can be attributed to advertising, generating $531m, up 39% the year over.

Ad revenue responsible for quarter growth

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Mobile advertising revenue represented 88% of total advertising revenue with mobile users now accounting for 83% of the group’s user base.

Whilst the results are positive, they still fell short of analyst expectations and stocks dropped almost 10% in after-hours trading.

Twitter has been busy expanding its advertising options to keep shareholders happy. For example, it added improved cross-device insight tools. In its results letter, the company writes:

“Marketers can see how mobile-targeted campaigns are driving downstream conversions and the value associated with those conversions – even if those campaigns are not last-click actions for their customers. Marketers have long wondered about the role mobile plays in driving results – and the data from early tests demonstrates why mobile should be an important part of their marketing strategy.”

It says website conversion ads on mobile drove a 52% increase in purchases made and people who engaged with apps and re-engagement ads were 120% more likely to convert.

In addition, Twitter has remodeled its mobile logged-out experience for greater responsiveness and content-forwarding, with 3% more people migrating into an active logged-out state within 30 days of their visit.

During the coming quarter, the company has plans to make mobile app promotion available to run across the Twitter Audience Platform (TAP).

Video products and general interest from marketers for video has been driving the product segment. Advertisers noted a 30% increase in ad association when they used video ads.

Despite video spend on the up, overall brand spend was down.

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