Twitter Inc (NYSE:TWTR) has not performed up to the mark this year. The quarterly report showed that, in fact, the company has failed to attract advertisers. These advertisers and marketers represent the largest part of company’s revenue. As a result, the revenue growth has declined and the company has registered lower numbers of advertising sales this year.
The company’s shared reduced by 18% on Tuesday followed by further decline of 9% on Wednesday. These statistics are not much surprising if the financial statements are looked at. But what is more surprising is the inability of Twitter Inc (NYSE:TWTR) to attract advertisers towards its new advertising strategy. The social is network is one of the most engaging platform in the world.
The microblogging website drives greater user interaction but has failed to show any substantial promise to its advertisers. The rival companies like Google Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB) offer better tools when it comes to advertising. Twitter Inc (NYSE:TWTR) has a good user database but it has not been able to use it towards advertising.
The company recently introduced direct response ads. These ads drive users to take an action, for example taking part in a voting or downloading an app. Such an interaction is more effective than simple ads like general brand image ads the company has been running in past few years. However, the advertisers have not shown a good response to this ad campaign. The primary concern of the advertisers is the failure of the company to provide reliable ad tracking tools and ad statistics.
The company also has less data about its users when compared to its competitors. This makes it rather difficult for advertisers to create targeted ads.
Twitter Inc (NYSE:TWTR) will soon try DoubleClick, a platform offered by Google Inc (NASDAQ:GOOGL) that measures ad effectiveness. The company will need to focus on delivering strategic solutions for advertisers. If it succeeds in doing that, the stockholders can surely expect better quarterly statement.
