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Twitter slumps in growing user base, affecting investors

Twitter has doubled in revenue since going public last year, logging in USD $664.9 million in Q4 2013. The company said that their increase in revenue is from advertisement, with three quarter of the total coming from mobile spend.

However, investors are concerned about the weak timeline views as Twitter banks on click through via promoted tweets. Twitter reported a sluggish growth of users in the last quarter of the year, with only a 3.8% increase — as opposed to 39% the previous quarter.

Forrester analyst, Nate Elliot shared with AFP saying: “If you don’t have an engaged user base, you don’t have business. They have got to do better on users.”

“Twitter finished a great year with our strongest financial quarter to date. We are the only platform that is public, real-time, conversational and widely distributed and I’m excited by the number of initiatives we have underway to further build upon the Twitter experience,” said Twitter’s CEO, Dick Costolo. “Twitter didn’t need to change anything, it simply needed to make Twitter a better Twitter.”

The company said they’ve begun making a number of changes in order to stimulate growth and improve user experience on mobile, including richer media in Twitter timelines.

Twitter’s stocks have vastly been affected, falling to 15%, after its users growth rate was released.

 
Parminderjit Kaur
Journalist
Advertising+Marketing Magazine Malaysia

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