News Contact Us

Twitter predicts a fall in ad sales but sees a surge in active users

Author : Pankaj Singh | Published Date : 2020-03-24 

Amidst the effects of coronavirus, social network company Twitter withdrew its Q1 revenue outlook and estimated an operating loss as its ad sales suffer a massive downfall. However, this revenue report also displayed a massive surge in active users.

According to the firm’s estimates, its first-quarter revenue could see a slight decrease on a year-over-year basis. Earlier, Twitter had projected an increase of 8.6 percent with its revenue being somewhere between US$825 million and US$885 million.

Meanwhile, Twitter revealed that its overall mDAU (monetisable daily active users) scaled up by 23 percent, reaching 164 million quarter-to-date. These figures were driven by ongoing product improvements and COVID-19 conversations.

Reportedly, numerous advertisers have withdrawn their marketing budgets as they struggle to keep up with the financial uncertainty due to the spread of coronavirus. Whereas remaining advertisers are hesitant to advertise their product among the discussions related to COVID-19 as to the fear of linking their brands with this pandemic.

Speaking on the move, Ned Segal, Chief Financial Officer, Twitter, said that the impacts of the COVID-19 were first seen in Asia, and then gradually propelled up to a global pandemic level. These effects have taken a toll on the company’s overall advertising revenue more significantly over the past few weeks.

However, Jack Dorsey, CEO of Twitter, slated that the company is observing a substantial rise in people active on its platform.

Apparently, the coronavirus epidemic has positioned social media platforms like Twitter and Facebook as a vital application for a massive chunk of population, as they depend on these platforms for latest news updates from official regulators while virtually keeping in touch with friends.

As the platform observes more and more users on its application, Twitter notified its users that it would not be able to attend each and every tweet that breaches the newly set safety rules.

Under this new guideline, users would be required to delete those tweets that can instigate communal unrest due to the spread of COVID-19 or damage someone’s health by encouraging harmful or ineffective treatments.

Source Credit: http://www.ejinsight.com/20200324-twitter-ad-sales-hit-by-pandemic-but-active-users-soar/

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Britain nears USD 625 million COVID-19 vaccine deals with Sanofi/GSK

Published Date: 2020-07-06         Author: Pankaj Singh

With over 100 vaccines are being tested and developed to stop the spread of COVID-19, it seems that governments worldwide are racing to secure supplies of vaccines even before their efficiency is proven. As per the latest news, Britain government is close to a USD 625 million supply deals with Sanof... Read More

ByteDance could lose $6 billion following recent TikTok ban in India

Published Date: 2020-07-03         Author: Pankaj Singh

The latest decision taken by the Government of India to ban 59 Chinese smartphone apps is trending worldwide, especially across China. As per a report by China’s Global Times, ByteDance, the parent firm of Helo and TikTok, is likely to incur a loss of about $6 billion after this imposed ban by... Read More

Oyo suspends MGB contracts for property owners due to reduced revenues

Published Date: 2020-07-01         Author: Pankaj Singh

The adverse impact of COVID-19 pandemic is becoming more and more evident across the world. It is being speculated that  nothing of this magnitude has been observed for more than 100 years since the 1918 Spanish Flu pandemic. Till now, over ten million people have been infected in over 200 nati... Read More

© 2020 Fractovia. All Rights Reserved