Publication date 7/27/2016
During its second-quarter earnings call, Twitter revealed that its mobile advertising comprised 89 percent of total advertising revenue, up 18 percent year-over-year and signaling the potency of targeting on-the-go users on their most frequented social networks.
Despite revenue and user numbers falling short of Wall Street expectations, Twitter’s quarterly revenue jumped 20 percent jump over-year-year to reach $602 million, a feat likely accomplished in part due to the network’s recent advancements and partnerships in the live-streaming space. By drawing more eyes to longer-form content, Twitter is able to maximize its mobile ads’ outreach and ensure that marketers continue rolling out their ad units within its feeds.
“The biggest news for Twitter this quarter was the emergence of live video broadcasts, starting with Wimbledon earlier this month and continuing with the political conventions,” said Sean Cullen, executive vice president of product and technology at Fluent. “Later this year, Twitter will simulcast the NFL Thursday Night Football and is also adding free MLB and NHL games.
“One of Twitter’s strengths is its sports content, ranging from fan reactions to breaking news, so these broadcasts are a natural fit for the platform.”
The focus on mobile
Although Twitter experienced a strong uptick in revenue, the number was still eclipsed by Wall Street’s estimates. Wall Street reportedly expected an average of $606.7 million in revenue for 2016’s second quarter, while the actual number clocked in at $602 million.
Twitter’s year-over-year revenue growth came in at 61 percent in Q2 of 2015.
The social network’s shares fell by 10 percent after the market’s close on Tuesday.
However, several of Twitter’s bright spots came in the form of mobile – namely, mobile monthly active users and mobile advertising.
Mobile monthly active users made up 82 percent of its total monthly active users, per Twitter. This proves that consumers are increasingly looking to consume bite-sized pieces of content on social networks through their smartphones instead of on their desktops.