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Twitter Idea Proposal

Twitter Idea Proposal
 

Research Question: Are advertisers seeing an ROI on Twitter to justify increased spending on the platform?

Report Available: October 7, 2015

 

Blueshift’s initial research shows TWTR continuing to struggle. Earlier this year, TWTR lowered its revenue estimates and ousted its CEO. Now the company is reporting flattening user growth. The company has been proactive in developing new and improved tools for advertisers, some of whom are excited about new features and/or seeing better results.

 

Observations

  1. TWTR’s Q2user growth failed to into impress Wall Street, reporting 304 million core users, just two million more than in Q1. TWTR execs gave a brutally honest account for its slowing user growth rate, claiming the site was too difficult to use and that it would not achieve sustained growth until its user base reached mass market. Despite fears regarding slower user growth rate, less was heard about whether its paying clients were satisfied with their advertising results.
  2. Some advertisers reported reducing spend on TWTR since they were unable to effectively track whether their targeted ads were converting into purchases. Recently, TWTR admitted its direct response ads were performing poorly because it could not effectively connect the dots between digital action and actual business. A large number of users reported the ads they saw on TWTRwere a poor fit for them. The company plans to continue fine-tuning its products for better performance.
  3. Despite TWTR’sstruggles with targeting and tracking conversions, more advertisers are pouring funds into the site, pushing TWTR’s revenue up nearly 63% in Q2. TWTR has taken several measures to improve advertiser success and satisfaction such as offering new ways for brands topay for mobile app installs and strengthening and rebranding its Twitter Audience Platform(formerly known as Twitter Publisher Network). Some advertisers recently noted more success on TWTR; one advertiser claimed his ability to select a campaign objective led to more app downloads and installs than he observed on FB.
  4. Blueshift’s social media and advertising reports over the last year have been cautious on TWTR with sources signaling red flags for the company. OurOct. 21, 2014, Facebook report showed advertising agency sources not spending significant money on TWTR or that they had seen subpar results on the platform as compared to FB. Our April 15 Facebook report said ad spending was growing gradually on TWTR, though our July 27 quarterly advertising report showed that TWTR was not garnering many positive reviews from the advertising community.

 

How are advertisers viewing ROI and scalability on TWTR? Are agencies adding more to their TWTR budgets? Is TWTR losing share to other social platforms? To gain insight into these questions and more, Blueshift will gather data and issue a market research report from independent sources in the following areas: Digital media buyers and executives, Large advertisers and ad agencies, Small and midsized agencies, Digital analytics firms, App marketing agencies and developers, and Industry specialists.

Companies: Twitter (TWTR), Facebook (FB), Google (GOOG), Yahoo (YHOO), LinkedIn (LNKD), Apple (AAPL)