Twitter Says It's Seeing Less Demand From Advertisers
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Twitter is still feeling the loss of advertisers’ love. The social messaging service today said it expects to see lower demand from marketers over the next three months, a trend it started seeing at the start of the year.
“Our brand business remains strong in absolute terms, but there are some new challenges that we’re now tackling head-on. First, there is increased competition for social marketing budgets, which requires us to continuously raise the quality bar on the advertising solutions we bring to market,” Twitter said today in a statement to shareholders, delivered while releasing second-quarter earnings. “Second, while we have worked to drive higher ROI for advertisers (by leveraging our current user base, ad formats and innovations in targeting, creative and measurement), we’re still priced at a premium [rate] relative to others. This has proven to be a headwind in growing Twitter’s share of overall social budgets and in our ability to grow faster in both video and performance advertising.”
The social budgets indeed are shifting as more money flows to upstart rivals like Snapchat, which is competing for the same type of marketer as Twitter — ones that are interested in live events, video and youth.
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