According to a report by Twitter, ad revenues have grown by 12% year over year to $885 million for Q4 of 2019. US ad revenue went up by 21% year over year on February 6. Total revenue (this includes $123 million from data licensing, along with other sources) increased by 11% year over year to $1.01 billion. This passed the billion dollar mark for the company in a quarter for the first time.
Monetizable daily active users (mDAUs) went up 21% year over year to 152 million. This is up 3% from the previous quarter. US mDAUs grew 15% year over year (up to 31 million), and 3% from Q3 of 2019.
“More than half of the 26 million mDAUs we added in 2019 were directly driven our improvements to the core product,” Twitter CEO Jack Dorsey said on the morning earnings call.
Dorsey also thinks the product updates that help users follow topics rather than just accounts “will be transformational” for the platform. “Interests represent an entirely new way to use Twitter, and we’ll deliver far richer timelines from onboarding to daily use,” he said.
During the last quarter, Twitter said bugs in the Mobile Application Promotion (MAP) product and personalization and data settings attributed to at least a 3 point hit to ad revenue growth. According to Ned Segal, Twitter’s CFO, the impact was “four or more points” in Q4.
Eforts to address the issues are ongoing, but that part of the new ad stack were in place ahead of the Super Bowl. Work on rebuilding the company’s ad server will be complete in the first half of this year, Segal said.
With the deprecation of TellApart technology in 2017, focus on direct response apparently has waned a bit, but at least it seems to be in a sense of change. Twitter is working on an updated mobile application promotion ad format Segal said itwill “not just to help improve an existing ad format for us, that’s important for our current advertisers, but also because this will give us a better path towards more direct response advertising over time.”
The company is also working to improve its mobile ad exchange MoPub. “And one of the ways that MoPub will benefit is, as we continue our work around more direct response-oriented ad formats, starting with MAP, that should benefit MoPub as well,” said Dorsey.
Source – Ginny Marvin