Many advertisers have stopped spending their budget on ads due to the country’s civil unrest, says Twitter.
Twitter’s Q2 earnings showed a drop in ad revenue. The company is in an on-going battle for its ad-based social platform as Twitter is trying to handle high loads of traffic due in this time of the pandemic. Advertising accounts for $526 million of the company’s revenue, that 23% drop from last year’s revenue. This is due to the advertisers’ decision to pause their campaign as the coronavirus plagued the world. Twitter saw a 25% decline in ads spend for its advertisers in the US.
Twitter’s CFO, Ned Segal said that they intend to rebuild their ad server with expectations that this will help the company recover some of their loss from the Q2 earnings. He further added that brands have been using innovative ways to contribute to the Twitter conversation on how they can connect with their target audience and existing customers. Segal announced that Twitter is making much progress in improving its performance in terms of ads roadmaps. This progress will hopefully put Twitter in a better position to become the go-to platform for advertisers and brands for their product launches and live events.
While the new ad servers aren’t yet gaining much traction and revenue, Twitter is taking other measures to take back what they’ve lost in the previous quarter. CEO Jack Dorsey said that they are planning to run a subscription test within the year.
Dorsey told the analysts on an investor call that he plans on setting a high bar when Twitter will finally ask its users to pay for some aspects of Twitter’s services. He emphasized that these plans are still in its very early stages and nothing is concrete at the time. He told CNN that the subscription service as the company’s new line of revenue will be complementary to its advertising business. Similar to paid subscription platforms, Twitter may be offering a free from trackers, free from ads, and a cleaner chronology of time as inclusions. This idea may sound promising for users and brands whose been using Twitter for many of their promotions, product launch, and in connecting with their audience.
Recently, the company’s executives’ accounts were hacked, and Twitter has faced a huge security breach as some of the company’s executives’ accounts were hacked. Security and privacy may also be a core in Twitter’s upcoming subscription-based platform.