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Twitter ad engagement suffers. Snapchat user gains slow Twitter’s ad engagement declined along with a steep drop in ad revenue.
We’re starting to get a clearer picture of how the pandemic affected social platforms last quarter. This week, even as monetizable daily active users increased by a whopping 34% to 186 million, Twitter reported ad revenue fell by 23% year-over-year to $562 million in Q2 (total revenue was $683 million, down 19% year-over-year), that’s coming off flat ad revenue growth in the first quarter of 2020. Twitter’s sharp decline in ad revenue was matched in a steep drop in ad engagement and cost per engagement.
Why we care. The trends of these two metrics, shown in the chart above, put in stark light the challenge Twitter’s ad business has been facing for many quarters now. Performance advertisers require engagement with their ads. Ned Segal, Twitter’s CFO, said in a statement that the company is still focusing on performance ads. “We have completed our ad server rebuild and are making progress accelerating our performance ads roadmap. With a larger audience and progress in ads, we are even better positioned to deliver for advertisers when the live events and product launches that bring many people and advertisers to Twitter return to our lives.” (The company is also looking at subscription options.)
Earlier in the week, Snap reported revenues rose by 17% year-over-year to $454 million. Investors were disappointed the big bump in users that Snapchat saw at the beginning of shelter in
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