Wednesday, April 26, 2017

Twitter revenues decline for first time as advertising falls away



https://www.theguardian.com/technology/2017/apr/26/twitter-revenues-fall-first-quarter-results-advertising

Twitter revenue has fallen due to advertisers pulling back. Twitter reported that in the first quarter, there revenue dropped 8%. This is the first time that twitter's revenue has declined. Although their revenue has declined, the company is not worried because the amount of users is rising rapidly. Analyst believe that because of the rise in users, the drop in revenue will not impact Twitter too much. Twitter has recently been in the spotlight due to what Trump says on his twitter account.  As stated by Michael Pachter, an analyst at Wedbush Securities, “Trump drives a lot of awareness about Twitter among people who otherwise wouldn’t be paying attention.” Twitter is not crediting their rise in users to Trump. They are saying that more of their new users are following political accounts, and are crediting their success to their new live stream feature that has reached 45 million users. Despite all that is happening, Twitter is confident in their abilities and working hard to improve their company and raise revenue.


Should Twitter be worried about the drop in revenue?
Why do you think the amount of users is rising?
Why do you think that advertisers are pulling back from Twitter?

46 comments:

  1. i think that the amount of users is rising because there are many different people using twitter. You can receive news to popular tweets from celebrities. Lots of people also like to have an outlet where they can let their voice be heard.

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  2. I don't think Twitter has to worry about revenue because so many people are going to continue to use Twitter. The amount of users is rising because people can get news easily through Twitter ,and it is a good social media platform.

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  3. I think twitter should worry about their revenue, there are over a 200 million active users on twitter and they need that revenue to keep maintaining the website. Falling revenue could also lead them not being able to compensate employees.

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  4. I agree with Shintaku because people are going to use twitter and they would use to have something to say. Twitter should be also be worried about their revenue.

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  5. Many people use twitter, and it continues to have more users. I believe that they should be worried about their revenue. Advertisers might be pulling back from twitter because of more popular apps such as snapchat, and instagram.

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  6. Twitter is still a popular social media platform, and many people use it for advertisements, news, and other forms of communication. I don't think they should be worried about the drop in revenue unless it decreases by a very significant amount. I agree with Cem, andI think that advertisers are pulling from Twitter because social media platforms such as Instagram and Snapchat are becoming increasingly popular among people compared to twitter.

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  7. Twitter should not be worried about the drop in revenue at all. It literally will not be a problem for them at all unless it gets to a point where it severely hurts them. Twitter is still a huge platform that can satisfy many users. There is something for everyone when it comes to twitter. Main reason why advertisers are pulling out of twitter is because anyone can buy twitter ads. If you're someone who composes tweets that are not advertiser friendly, then that will make the company look like they support things like that. It all has to do with the type of tweets that these companies want to place their ads with.

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  8. I don't think twitter should be worried, it is a pretty popular social media platform.

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  9. A lot of people use twitter which is a great benefit for them, so they should not be worried at all

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  10. Beautiful blog post Brittany Wan, I don't think twitter should be worried about *their revenue dropping because up until now they've been doing very well. No need to cry over spilled milk graa graa

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  11. More users are using twitter because of the larger names who use twitter in order to gain publicity.

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  12. Instagram is attracting new advertisement, so that is probably why Twitter advertisement has been lacking. Maybe once Instagram's publicity with it declines, Twitter will regain sponsors.

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  13. I do not think that Twitter should be worried about the drop in revenue because it is still very popular. Advertisers may be pulling back from Twitter because of other popular social media apps.

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  14. I don't think that Twitter should be too worried about their drop in revenue. They are still an incredibly successful company. I think they are getting a rise in users because that is the cause of a lot of sources of news. For example, we now have a president who bases off over Twitter every two weeks. I think that a lot of advertisers have been pulling away from Twitter because there are tons of other more succesful platforms that they can use to advertise

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  15. I don't believe that Twitter should be worried at all about this revenue decline. If you look at all the data they are still a successful company, and I believe they will find a way to turn this thing around. Once again users are increasing for twitter because its a popular type of social media for teens and that it will continue rising because of that.

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  16. Twitter is an extremely successful company and they should not worry about this revenue decline. More users are using twitter due to the celebrities that post on twitter.

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  17. Twitter is a very used app, and it has been for a long time; so I don't think they need to worry about the revenue right now unless it gets very drastic. It has a lot to offer like, it's a quick way to view any news on your phone and helps you communicate with others. I don't think Twitter should be worried

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  18. I think that Twitter doesn't have to be worried because they are and have been so popular. I do believe that the amount of users is rising.

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  19. Let's face it ladies and gentleman we live in a world of snapchat and instagram. Facebook and Twitter are the old guardians that brought us out of the myspace era. However as time passed by the ancients fell victim to age and relatively low creativity. They sat on their laurels of the empire they built and then new companies came in and swooped.

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  20. I don't think twitter has to worry about anything because its a very common app that a lot of people are using.

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  21. Although advertisers may be withdrawing from Twitter, the increased number of users will still bring in advertising revenue. There may be fewer advertisers, but the larger magnitude of users means that the ads that are placed will get even more views, giving Twitter the revenue they're looking for.

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  22. Twitter should not be worried about the drop in revenue because they have an increasing number of members. I feel part of this increase is because of Trump and people who may want to see what he is saying. Overall though, the increase will be beneficial for their business.

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  23. I don't think Twitter should be worried because it already has millions of users and I think they should be fine since the amount of users using Twitter are increasing

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  24. I do not believe that Twitter should be too considered with the drop in revenue for they are one, if not most largest social media right now. Their number of users are growing every day and will continue to for a very long time.

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  25. I also agree that Twitter shouldn't have anything to worry about. They are one of the biggest social media platforms in our day and age. The number of users should only continue to rise, even though they already have millions of users.

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  26. I doubt that these drops in revenue will affect Twitter what so ever in the future especially since the rise of new twitter accounts is pretty insane.

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  27. Twitter shouldn't have anything to worry about, they are a huge social media company that can do fine with a little drop. A lot of people use it everyday, including the fans try to follow celebrities and try to find out gossip from twitter.

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  28. Twitter shouldn't be worried because it is such a big company with many users. With more celebrities or A-Listers using Twitter, I feel that people are using twitter just because of them. Twitter doesn't really need advertisement, that's why it's going down.

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  29. I think the users on twitter are rising for the fact that twitter serves as a platform for people to update their lives as well as check on others.

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  31. I dont think Twitter should be worried at the moment. They are a popular social media platform for all ages and until a new one comes forth, Twitter's users will continue to rise regardless of revenue.

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  32. I don't think twitter should have to worry because if the amount of users is rising that means twitter is becoming more pupular.

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  33. I also don't think that twitter should worry because a lot of people use twitter as their top social media

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  34. I don't think twitter should be worried about the revenue drop if their amount of users is still rising. The users rising may be because they want to see what Trump is saying on there or could just be because of social media craze

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  35. i think twitter will inherently experience periodical growth, during crises and large scale public events, such as an election, especially such a dramatic one as this

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  36. revenues in social medias will always bounce but i feel that twitter is such a popular social media app that pretty much everyone is on from a variety of ages that it doesnt matter that their revenue is down bc i can guarantee that it'll go up again

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  37. I think that twitter does not need to worry, I believe that it is simply going trough a change where it is more used by celebrity and politicians therefore it is lowering in popularity yet as a rise in users because people want to be able to view what people are tweeting especially with Trumps heavy use of twitter

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  38. I do not believe that Twitter should worry, many people rely on Twitter as a source of news to keep up to date with everything going on.

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  39. Just because a company has more users does not necessarily mean more revenue, depending on how their income is based and with shareholders confidence in the company. Advertisers for whatever reasons may not want to be based in twitter for stigma or certain outlooks and could lead to a drop in revenue that way, and that may be worrisome in the future. The rise in users could be from new publicity in news outlets.

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  40. I agree with Thomas and dont think twitter needs to worry as Twitter is a pretty big social media platform.

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  41. Twitter should not worry, just like Tommy said, people go to twitter for alot of news. Celebrities and stuff keep twitter going.

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  42. I think that Twitter is just so big that it really does not have to worry about this type of thing at this point. If there was a serious decline, then it should start raising eyebrows, but for now they should be ok. Although, they shouldn't just think nothing of it. They should take this into consideration and figure out how to fix this problem. As Tomislav mentioned, gaining new users will not directly impact revenue, and they should focus on this now before it gets out of hand.

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  43. Twitter shouldn't worry about the drop in revenue because the large amounts of users that is increasing will attract advertising and it shouldn't be a problem. it's a big company and has done well.

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  44. Twitter is so big that they are worried something bad is going to happen and the revenue will be a huge decrease but it wont because Twitter is used by so many artist that it wont fail

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  45. Although I don't see the point in Twitter myself, I don't see w they are worried since they are such a large social media platform.

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  46. It shouldn't be a great worry for twitter, like Katie mentioned before they are a big company with many followers. However if nothing is done to prevent the revenue from decreasing, it will only keep decreasing.

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