Late last week, Twitter reported that its total ad revenues had grown 8% to $702 million during the third quarter of 2019, falling short of the $756 million estimated by analysts.
Total revenues were up 9% to $824 million during Q3 2019 with US earnings of $465 million, up 10% from the previous year.
Twitter cited revenue product issues for the shortcomings in total revenue.
Ad revenue may also have suffered from a low season. The holiday period should increase ad gains again.
Cost per engagement fell 12% in Q3 2019 compared to Q3 2018.
“From an advertiser standpoint, Twitter has never been more relevant,” said Aaron Goldman, Chief Marketing Officer at 4C Insights.
“The platform represents an incredible opportunity to associate brands with timely moments in news and culture. Marketers using Scope by 4C to manage their ads on Twitter continue to increase their budgets with Q3 2019 growing more than 50% year-on-year. Brands are leaning particularly hard into video on Twitter with more than 80% of our ad spend going to that format for its ability to drive engagement at scale.”
On the bright side, daily active usage (monetisable) rose 17% to 145 million during the period. Monetisable active users are those who see ads on a regular basis across the Twitter feed.
“We drove strong growth in monetizable DAU (mDAU), up 17% year-over-year, driven by ongoing product improvements. We’re continuing to improve relevance while testing ways to make it easier for people to find what they are looking for on Twitter,” said Jack Dorsey, CEO of Twitter in a statement.
“We also continue to make progress on health, improving our ability to proactively identify and remove abusive content, with more than 50% of the Tweets removed for abusive content in Q3 taken down without a bystander or first person report.”